Kuching | Jan-15 | Hydro Power Development in Sarawak: Opportunities & Challenges

Hydro Power

Development in Sarawak:

Opportunities & Challenges

Presented By Dr. Chen Shiun

General Manager, Research & Development

Sarawak Energy Berhad

January 2015

Agenda

of Presentation

• Sarawak Energy

• SCORE

• Hydropower

• Sustainable Development

Sarawak Energy is fully

owned by the State

Government and has a

proud history over 70

years .

A fully integrated electric

utility, Sarawak Energy is

the sole entity responsible

for transmission and

distribution of electricity,

and the main entity

responsible for electricity

generation, in the state of

Sarawak.

4

High Level Objectives for Sarawak Energy

Maximize the scale, investment and employment

benefits of the State’s SCORE agenda;

Build our employees’ capacity and transform SEB into

a modern, professional & agile corporation.

Finance our investment program (of RM15/RM20 bn),

without State Government funding or guarantees;

SCORE was developed to propel the economy to a new level of income

and development. Principal objective of SCORE is to harness Sarawak’s

sustainable strategic advantage in the production of bulk electricity at

globally competitive prices to attract investment to the State.

6 Objectives of SCORE

To create new sources of wealth 1

2 To move State’s economy up to the value chain

3 To achieve higher per capita income

4

5

6

To enhance quality of life

To achieve balanced regional development

To eradicate poverty

Argentina

Australia

Brazil

Canada

China

France Germany

Italy

Japan

Korea

Malaysia Russia

Saudi Arabia

South Africa

Spain

United Kingdom

United States

World Average

0

10000

20000

30000

40000

50000

60000

0 5000 10000 15000 20000

GD

P/C

apita

kWh/Capita

Energy Access Drives Economic Performance

Source: World Bank Data (http://databank.worldbank.org)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

Australia

France

Malaysia

Netherlands

United Kingdom

United States

GDP Per Capita from 1989 – 2011

Source: World Bank Data (http://databank.worldbank.org)

The Developed World is still pulling ahead

of the Developing Countries

15,000

65,000

115,000

165,000

215,000

1990 1995 2000 2005 2010

kW

h p

er

cap

ita

Developed

Developing

Energy Consumption per Capita

from 1990 to 2011

Absolute Growth

Developed 32,112.3 kWh/cap

Developing 24,854.8 kWh/cap

Source: World Bank Data (http://databank.worldbank.org)

SCORE Contribution

Towards Development of Sarawak

GDP Expected to increase from 12,000 USD at the present

moment to over 20,000 USD before 2020

Year Professionals Semi-

Professionals Support Staff

General

Workers Total

2030 13, 761 19, 339 34, 127 67, 255 134, 482

Job Creation in SCORE New direct and indirect jobs created by the SCORE Industries

Source:

Utamas Strategic Manpower Study for SCORE

Sarawak Energy Growth Agenda

Sarawak Energy support the State’s economic development

strategy through Sarawak Corridor of Renewable Energy

(SCORE), as we raise the output of electricity from around

5,000 GWh in 2010 to 40,000 GWh by 2020.

HYDROPOWER POTENTIAL IDENTIFIED IN 1962

Followed up by various studies in 1980’s and 1990’s

Sarawak Landscape Captured by

Professional Photographer SC Shekar

50+ sites totaling 20,000MW

Only 3 sites are utilized

totaling 3,438MW (17%)

Hydropower in Sarawak:

A Sustainable Competitive Advantage

Small hydro 5-12

Large hydro 5-6

Geothermal 6.5

Coal supercritical (@ 80 $/ton)2 ~7

(@ 120 $/ton) ~6

Gas CCGT (@ 10 $/mmbtu) ~11

(@ 15 $/mmbtu) ~8

Nuclear ~9

Wind ~10

Diesel (@ 100 $/bbl crude)1 ~22

LCOE by technology in ASEAN 2020-35

$cent/kWh in real terms

Renewable & Green

A renewable and clean energy source as hydropower do not produce CO2 emission

Security & Flexibility

Electricity can be produced at a constant rate once dam is constructed

Long life & sustainability

Hydroelectric dams can provide renewable energy for more than 100 years

Batang Ai Hydro

94MW Installed Capacity

Commissioned in 1986; Peaking for Kuching city

Bakun Hydro

15

2,400MW Installed Capacity; 1,771 MW firm capacity

Signed Exclusive Power Purchase Agreement on 1 June 2011

16

944 MW installed capacity, 635 MW firm capacity

Impoundment completed end 2014

Last of four turbines to commence COD in Jan 2015

Murum Hydro

17

Murum Spillway

18

Murum Power House

19

Murum Control Room

We are now building on the experience from

Batang Ai, Bakun and Murum to further

improve our processes in the next Hydro

developments

LAWAS

47 MW

TRUSAN 2

160 MW

BALEH

1180 MW

BARAM 1

1180 MW

LIMBANG 2

130 MW

LIMBANG 1

45 MW

BARAM 3

295 MW

PELAGUS

465 MW

KOTA 2

10 MW

MURUM

944 MW

BELAGA

160 MW

BAKUN

2400 MW

Linau

182 MW

Sarawak Hydropower Development

BATANG AI

94 MW

22

Artist Impression of Baram HEP

1,180 MW Installed Capacity

Expected to be in operation by 2021

Artist Impression of Baleh HEP

1,285 MW Installed Capacity

Expected to be in operation by 2022

Coal Resource of Sarawak

806mt 20mt

203mt

385mt

54mt

Sarawak hosts modest coal resource (1,500 million ton (mt))

(82% of national total)

25

337 MW CC Installed Capacity

Commercial Operations: 1999 (Unit 7 & 8), 2010 (Unit 9)

Bintulu Gas Power Plant

26

210 MW Installed Capacity

Commercial Operations: 1998 (Phase 1) & 2005 (Phase 2)

Sejingkat Coal Fired Plant

27

270 MW Installed Capacity

Commercial Operations: 2009

Mukah Coal Fired Plant

600 MW Installed Capacity

Expected to be in operation by 2018

Artist Impression of Balingian CFPP

BALINGIAN COAL FIRED POWER PLANT

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

MW Baram 1

Northern Agenda

Merit Pila

Samalaju CCGT

Miri Lutong CCGT

Balingian

Tanjung Kidurong CCGT

Murum

Bakun

Original Gen Mix

Building SCORE:

Generation Build Up Phase 1-2 (Installed MW)

Phase 1 Phase 2

Baram/Baleh

TRUSAN HEP (Planned) – 270MW

LAWAS HEP (Planned) – 38MW

LIMBANG 1 HEP (Planned) – 42MW

LIMBANG 2 HEP (Planned) – 140MW

MURUM HEP (Commissioning) - 944MW

BARAM 1 HEP (Planned) – 1200MW

BARAM 3 HEP (Planned) – 295MW

BALEH HEP (Planned) – 1285MW

PELAGUS HEP (Planned) – 562MW

BATANG AI POWER STATION – 108MW

MUKAH POWER GENERATION – 248MW

TANJUNG KIDURONG POWER STATION – 190MW

SEJINGKAT POWER CORPORATION – 210MW

TUN ABDUL RAHMAN POWER STATION - 75MW

MIRI POWER STATION - 78MW

SARAWAK POWER GENERATION – 310MW

MAIN POWER STATION

COAL POWER STATION

GAS POWER STATION

FUTURE HYDRO POWER STATION

HYDRO POWER STATION

LEGEND

MERIT PILA COAL (Planned) – 300MW

BAKUN HEP – 2400MW

BALINGIAN POWER STATION (Planned) – 600MW

SAMALAJU GAS POWER STATION (Planned) 600-800MW

30

BELAGA HEP (Planned) – 240MW

MIRI GAS POWER STATION (Planned) 600-800MW

MUKAH WEST1 (Planned) 600MW

Building SCORE: Possible Scenario up to 2035

KIDORONG CC GAS POWER STATION (Planned) 400 MW

SCORE

Energy Intensive Customers

32

Press Metal Signing 2011

(Aluminium Smelter – 480MW)

Started taking power Sept 2012

33

Tokuyama Signing 2011

(Polycrystalline Silicon)

Phase 1 (140MW) Commercial Operation March 2013

Phase 2 (200MW) Commercial Operation May 2014

34

OM Holdings Signing 2011

(Manganese & Ferrosilicon Alloy – 500MW)

OM Holdings – January 2014

Has started taking power in September 2014

35

Asia Minerals (Pertama Ferroalloys) Signing 2011

(Manganese Ferroalloys – 270MW)

AML – April 2014

Expected to start taking power by Q1 2015

TERM SHEET AGREEMENT IN 2014

Malaysian Phosphate Additives (Sarawak) Sdn Bhd

Comtec Solar International (M) Sdn Bhd

What is Sustainability Development?

Finding the balance between:

Environment Conservation

Social Protection

Developing the most

economic energy sources

Existing 3 HEPs,

1%

Planned 9 HEPs,

1%

Non HEP use, 98%

2%

Source: Hydropower Development Division, Sarawak Energy Berhad

Percentage of Land Use for

Hydro Electric Project (HEP) in Sarawak

84%

62%

33%

29%

19%

12% 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Sarawak Malaysia United States France Australia United Kingdom Netherlands

Malaysia’s Pledge: 50%

Percentage of Forest Area (2011)

Who are sustainable?

UN Convention Baseline: 10%

Source: World Bank Data (http://databank.worldbank.org)

Images of People of Sarawak Captured by

Professional Photographer SC Shekar

The Hydro power

development in

Sarawak provides a

platform for the

Government to lift

the rural people out

of poverty

People deserve…

Improved Amenities

Increased Job, business Opportunities

Development of

Infrastructure

Enhanced Standard of

Living

Reality – How did the Penans live prior to the

Murum Hydro Power development?

• Very Low Income average over

353 families was ~US 600 per

year (semi-nomadic, mainly

hunter-gatherer)

• Low expected living age (40+)

• Very Low literacy rate

(less than 20% received formal

education)

• Children moderately

malnourished

43

HOUSING CONDITION BEFORE RESETTLEMENT

44

KITCHEN

45

BEDROOM

46

BATH PLACE

Site Identification with Villagers

Long Wat

Long Malim

HAS GIVEN WRITTEN

CONSENT TO RESETTLEMENT

MURUM RESETTLEMENT LONGHOUSE

RESETTLEMENT LONGHOUSE NIGHT VIEW

Provision of Infrastructures

Genset Room One Duty & One Standby Genset for

each Village

Provision of Street Lightings

Water Storage Tank

Water Filtration System Water Catchment Weir

Water Supply Works

53

Schools for Tegulang & Metalun Resettlements

School In Session

Transportation for School Children SEB working together with Murum Penan Development

Community to provide transportation for children

to attend school

Literacy Classes Setup in 7 Longhouses

6 in Murum and 1 in Sg. Asap

Land Allocation for Resettlement at Murum

3 acre

For

longhouse

& other

community

facilities

27 acre Cash crops

such as

rubber trees

8 acre Food crops

such as

paddy,

tapioca,

potato, fruit

trees, sago etc

TOTAL ALLOCATION PER HOUSEHOLD 40 acres

52 000 a

Roaming

Hunting &

food

gathering

57

Temporary Government Support from 2013 to 2015

RM850/month/household

Community Development & Entrepreneurship

Aquaculture

Community

based fisheries

project at

resettlement

areas.

To be initiated

in 2014

‘Tagang System’

Fisheries

Training &

courses will be

focused on local

communities.

To be initiated

in 2015

Cage Culture

Fisheries Fish Nursery &

Hatchery

Locals can be

engaged as ‘on

job training’

staff.

To be

established in

2014

At least 2 to 5

locals needed

for the

Operation

Team.

On-going

Project

Fish Monitoring

& Rescue

Operation

Failure to develop is NOT sustainable

60

Energy development is a tried and tested strategy in empowering communities to strive

for economic independence

Terima Kasih

www.SarawakEnergy.com.my