Energy Info Highlights

Malaysia’s total installed capacity as of the end of 2006 was 20,224 MW, an increase of 3.6 percent from 19,504 MW in 2005. This was attributed to the commissioning of the first (700 MW) of Tanjung Bin Coal Power Plant in Johore in September 2006. Meanwhile, the total available capacity as of the end of 2006 was 19,675 MW. Electricity generation registered 93,217 GWh, an increase of 2.4 percent as compared to last year’s growth (2005: 2.2 percent). On the other hand, the electricity consumption was 84,517 GWh, an increase of 4.7 percent from the previous year (2005: 80,701 GWh). The peak demand for Peninsular Malaysia was recorded at 12,990 MW in August 2006, Sarawak at 772 MW (in 4Q 2006) and Sabah at 594 MW (4Q 2006). The reserve margin for Peninsular Malaysia in 2006 was 42 percent and 26 percent for Sarawak.

In 2006, the electricity consumption from the residential sector increased by 12.8 percent to register at 1,515 ktoe (17,608 GWh) compared to the previous year, while the commercial sector also increased by 4.8 percent to reach at 2,277 ktoe (26,464 GWh). The increase was partly due to higher tourism activity and the opening of new retail outlets mainly in the Klang Valley. The electricity consumption in the industrial sector recorded an increase of 3.1 percent to register at 3,475 ktoe (40,387 GWh). The increase was influenced by higher GDP in the manufacturing sector recorded in 2006. The electricity consumption from the transport sector, increased from 5,000 toe (58 GWh) in 2005 to 5,421 toe (63 GWh) in the year 2006. Overall, the total electricity consumption recorded a growth of 4.7 percent compared to the previous year to register at 7,272 ktoe (84,517 GWh).

The final energy demand in 2006 increased by 5.3 percent to settle at 40,318 ktoe compared to 38,285 ktoe in 2005. The share in energy demand was highest for the industrial sector at 42.1 percent, followed by the transport sector at 36.7 percent, 13.6 percent from the residential and commercial sector, the non- energy sector at 7.0 percent and 0.6 percent from the agriculture sector. All sectors showed an upward trend except for the transport sector. The energy demand from the transport sector dropped by 3.6 percent to register at 14,825 ktoe. The drop was attributed to lower sales of new passenger cars that were recorded in the year 2006. Based on data from the Ministry of Finance (MoF), the sales of new passenger cars in 2006 decreased by 9.0 percent to register at 374,189 units compared to the previous year.

Total final energy demand of petroleum products in 2006 was 22,394 ktoe, a decrease of 2.7 percent, comprising mainly of diesel and motor petrol, with a share of total demand of 38.1 percent and 33.6 percent, respectively. This was followed by aviation turbine fuel (ATF) and aviation gas (9.6 percent), fuel oil (8.5 percent) LPG (6.8 percent), non-energy (3.0 percent), and kerosene (0.4 percent). Demand for all fuels registered declines except for LPG, ATF & AV Gas and non-energy. Non-energy demand increased by 19.2 percent, ATF & AV Gas increased by 7.1 percent and LPG increased by 0.7 percent from the previous year.

In view of the potential increase in energy demand, particularly to support the growth of various sectors of the Malaysian economy, oil and gas are expected to continue to play a dominant role in the country’s primary energy mix. Natural gas is expected to remain a dominant fuel for the power generation and commercial sector. To enhance the security of supply, Malaysia has been importing natural gas from the Joint Development Area (JDA) and West Natuna. Likewise, the country has also been importing coal and coke to ensure a balance energy mix for the power generation sector. In this respect, by ensuring a security of energy supply, the total electricity generation had increased with natural gas as the dominant fuel followed by coal.

On the demand side, almost all sectors exhibited growth in their consumption of energy for the year 2006 with a major increase observed from the industrial sector due to the strong growth in the manufacturing activity that was supported by increase in exports and strong domestic demand. This is very much in line with the positive growth projection of the Malaysian economy as the country continues to progress and achieve macro-economic stability. In a nutshell, the energy sector in 2007 is expected to expand further following the anticipated implementation of major projects under the 9th Malaysia Plan.