Energy Info Highlights 2002

As at the end of 2002, Malaysia’s total installed capacity stood at 15,671.0 MW compared with 14,813.1 MW in year 2001. This is partly attributed to the commissioning of 440 MW of Teluk Gong 2 in Melaka and 430 MW of GB3 in Perak which both are of gas power plant types. Electricity generation recorded a increase of 10.9 percent to 77,501.6GWh compared to the marginal increase of 0.5 percent in 2001. The peak demand for Peninsular Malaysia was at 10,783.0 MW, Sarawak 570.9 MW and Sabah 447.1 MW. The figures of peak demand for Sarawak and Sabah were based on grid-connected system only.

In terms of electricity generation mix; the share of natural gas declined from 71.8 percent in 2001 to 68.0 percent in 2002. As a result, the proportion of fuel oil and diesel increased from 6.1 percent in 2001 to 10.9 percent in 2002 and the share of coal in electricity generation also increased by 1.9 percent from year 2001 to 2002. Meanwhile the share of hydro declined by 2.9 percent in 2002.

The total electricity consumption for Malaysia recorded a growth of 6.3 percent from 63,043 GWh in 2001 to 66,991.4 GWh in 2002. The growth in electricity demand was due to the economic recovery in the industrial sector primarily the manufacturing industry. The growth was also contributed by the continued expansion in the exportoriented industries. The commercial sector also recorded a positive growth primarily from the hotel and restaurant sector as well as the services sector.

In 2002, total final commercial energy demand was at 33,290 ktoe compared with 31,515 ktoe in 2001. The increased was supported by positive growth in, domestic demand-oriented industries in the manufacturing sector and the construction sector, as well as the services sector. The transport sector still retained its position as the leading consumer of final energy accounting for 40.4 percent in energy consumption in 2002. The industrial sector share increased by 1.6 percent to 38.6 percent and the share of both residential and commercial sectors remained at about 13.0 percent whereas the agriculture sector at 0.3 percent.

Analysis on the demand for fuel type showed that the share of natural gas increased from 14.6 percent in 2001 to 16.9 percent in 2002. The main reason for the continuous growth in consumption of for natural gas has been the increasing consumption from the industrial sector, the Centralised Utilities Facilities (CUF) and district cooling systems. The district cooling system sub-sector, another main domestic user for natural gas that produces chilled water for air-conditioning system and generate electricity for several new business and administration centres in and around Kuala Lumpur, also recorded an increase in demand for gas. Petroleum products was still the dominant fuel in the final use of commercial energy accounting for about 62.0 percent in 2002 compared with 64.5 percent in 2001. The electricity share remained at 18.0 percent whereas coal and coke at 3.2 percent during the period.

The growth rate of the final demand of petroleum products increased by 3.3 percent annually in the period of 2000 – 2005. In 2005, the demand for petroleum products grew by 0.6 percent attributable to increased economic activity, particularly in the manufacturing sector as well as the transport sector

Overall, growth in the energy sector in 2002 were driven by three key changes. First, the commissioning of 440 MW of Teluk Gong 2 in Melaka and 430 MW of GB3 in Perak, which contributed to the increase in total installed capacity of the power sector. Second, the decrease in the share of natural gas resulting to an increase of share of fuel oil and diesel in power generation. Third, higher demand of natural gas in the industrial sector was due to the activities from petrochemical plants and the CUF. These have contributed towards expansion in the Malaysian energy sector.