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Solar energy market a case study on sustainable energy industry

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Analysis of the Potential Solar Energy Market in Malaysia: A Case Study on Renewable Energy Industry

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Page 1: Solar energy market a case study on sustainable energy industry

SOLAR ENERGY:A CASE STUDY OF

SUSTAINABLE ENERGY

Page 2: Solar energy market a case study on sustainable energy industry

Outline

• Introduction• Problem of Statement• Literature review• Solar Energy• Conclusion

Page 3: Solar energy market a case study on sustainable energy industry

Introduction

• Terms of Energy– Energy means capacity to performs works– Many different energies – physics, chemical,

biology– Exists in many forms, transferable and

conservable– In generation of electricity – energy divides to

non-renewable and renewable energy

Page 4: Solar energy market a case study on sustainable energy industry

Introduction

• Energy in Malaysia – Ideally, a good mix of renewable and non-

renewable– Demand is increasing about 4.7 % a year– In 2009 at 103.2 TWh expected to increase to

274 TWh (2030)– User fraction

• Transportation (40.5%)• Industrial (38.6%)• Residential and commercial (13.1%)

Page 5: Solar energy market a case study on sustainable energy industry

Introduction

• National energy policies– National Energy Policy (NEP) 1979

• Four fuel diversification – oil, hydropower, natural gas and coal

– Revised NEP in 1999• Five fuel diversification – oil, hydropower, natural

gas, coal and renewable energy

Page 6: Solar energy market a case study on sustainable energy industry

Problem of Statement

• Energy issues in Malaysia – Increasing demand but less supply– Depletion of fossil fuel & need alternative– Environmental issues

• GHGs emission• Pollution• Climate changes

• Solution? – Diversification of energy

Page 7: Solar energy market a case study on sustainable energy industry

Literature Review

• Sustainable energy strategy– Five-fuel Diversification 1999

• Lessen dependency on fossil fuel• Promote new alternative energy source

– National Green Technology Policy 2009• Promote green technology• Energy efficiency• Environmentally friendly

Page 8: Solar energy market a case study on sustainable energy industry

Literature Review

• Potential renewable energy in Malaysia– Biomass, solar, mini-hydropower, municipal

waste, biogas, & wind.• Highest potential to be implemented

according to Ministry of Energy, Green Technology and Water are:– Biomass – Solar

Page 9: Solar energy market a case study on sustainable energy industry

Literature Review

• Why Biomass?– Plenty of resources to generate the energy– Palm oil residues, wood residues, agriculture

residues – These resources use to generate heat and

electricity

Page 10: Solar energy market a case study on sustainable energy industry

Literature Review

• Why Solar?– Solar energy is a naturally– Location of Malaysia – equatorial region– Suitable climate

• High temperature 22 to 33 deg Celsius• High humidity 80 – 90%

– Abundant of sunshine • Average daily solar radiation is 1643 kWh/m2

Page 11: Solar energy market a case study on sustainable energy industry

Literature Review• Why Solar over Biomass?

– Potential growth due to emerging technology– Expected to be main source surpass other renewable

energy in Malaysia (source: KeTTHA)– Solar panels have efficiencies as high as 19%,

meaning that much of the sun’s energy is converted into electricity.

– Clean, no GHGs emission – Can install widely regardless of location in M’sia– Small investment for micro-generation (residential)– Less or almost free maintenance and high reliability

with life span expectation of 20–30 years

Page 12: Solar energy market a case study on sustainable energy industry

Solar Energy

• Still infancy level• Most promising renewable energy in Malaysia• Small scale to large scale installation• Application of solar

– Solar thermally generated electricity- complex collectors to gather solar radiation to produce temperature high enough to drive steam turbines to produce electric power,

– Solar Photovoltaic (PV) energy - direct conversion of sun’s ray to electricity- single junction silicon solar cell has 19% efficiency

Page 13: Solar energy market a case study on sustainable energy industry

Solar Energy

• Widely used in Malaysia is solar PV application • Mostly for small scale up to medium scale

installation like residential and buildings• Government support program like Malaysia Building

Integrated Photovoltaic (MBIPV)– To promote and stimulate the PV solar system– Reduce long term cost of BIPV– Aims for energy efficiency with integration solar to existing

electricity grid– The project results are expected to induce an increase of

BIPV application by 330% from the baseline in 2005, with a cost reduction of 20% by the year 2010.

Page 14: Solar energy market a case study on sustainable energy industry

Solar Energy

• Current application status – Formulation of programs like BPIV & SREP to support the

development– R&D by universities like UKM on solar thermal systems

and grid connected PV; UPM on solar energy & UM on BIPV

– Installation mostly small to medium scale – residential & buildings

– Policies like National Energy Policy (NEP), National Depletion Policy (NDP)

– Acts like Renewable Energy Act 2011 & Sustainable Energy Development Authority Act 2011

Page 15: Solar energy market a case study on sustainable energy industry

Solar Energy

• Management of resources – Ministry of Energy, Green Technology and Water for

policies and acts– Energy Commission for supervision and enforcement – Malaysian Industrial Development Authority (MIDA) for

promotion of RE– Tenaga Nasional Bhd as utility providers– SIRIM for R&D– MoHE, universities, etc – provides courses, trainings on

RE

Page 16: Solar energy market a case study on sustainable energy industry

Solar Energy

• Future prospect – Projected to supply 30% of world’s energy by 2050– Under MBIPV, solar PV energy in Malaysia as main energy

source– Introduction feed-in-tariff (user sells electricity to utility)

stimulate solar PV applications– Introduction of SURIA1000, a funding incentive (similar

concept to hire and purchase)– R&D of technology of solar system by universities,

companies etc to improve the system– Malaysia as major player in solar system

Page 17: Solar energy market a case study on sustainable energy industry

Conclusion

• Highly potential due to its location – equatorial location

• One of future sustainable energy due to advantages of solar system

• Efforts and commitment from GoM in term of policy, funds, R&D and stimulation increases the growth

• Major barrier is capital investment but can be compensated by proper planning and management

Page 18: Solar energy market a case study on sustainable energy industry

Conclusion

• Education sectors plays major role on training and expertise level

• Media promotion increases public awareness thus encourage rapid adoption of BIPV

• In conclusion, Malaysia should optimize solar PV system to replace non-renewable energy