Rural Electrification Paper for MARA Inc

Rural Electrification Paper for MARA Inc

CONCEPTUAL PROPOSAL

R U R A L E L E C T R I F I C AT I O N F O R MA L AY S I A P R O V I D I N G 2 4 H O U R S E L E C T R I C I T Y S U P P L Y T O T H O S E I N N E E D ~ T H E E N E R G Y P O V E R T Y

Paper presentation for Ministry of Rural Development

In collaboration with:

AB S T R AC T

Energy poverty and lack of electricity in rural areas exacerbate the poverty of the developing countries. In Malaysia, 3.8% of the population lives below the poverty line and most of them are settled in rural areas. The electricity coverage in poor states is about 79% in comparison with 99.62% in Peninsular Malaysia. The renewable energy sources can be considered the best alternative to reduce the energy poverty of the rural areas where the grid extension through a difficult terrain and thick jungle is not possible or economic. The potential for applying renewable sources – solar, wind and hydropower – for rural electrification is investigated, especially in the poorest States. A comparative study on rural electrification policies, in order to have community approval, appropriate siting and financial benefits for the rural community, while considering the three categories of social, institutional and economic issues, is also examined. Finally, the Malaysian policies of rural electrification by applying renewable sources are explained. It is found that in Malaysia, with a maximum solar radiation of about 6.027 kWh/m 2 per day in Sabah and 5.303 kWh/m 2 per day in Sarawak, the potential for applying solar energy for electrification is too high. However, the potential for micro-hydropower in Sabah and Sarawak is found to be 3182 kW and 6317 kW through 18 and 22 sites, respectively.

RUR A L E L E C T R I F I CAT I ON

Under the Ministry of Rural Development, Rural Electricity Supply Programme includes a grid connection method, alternative methods such as hybrid solar and hydro micro and installation of streetlights in the village to ensure the readiness of sufficiency in electricity supply, guarantee and reliability to the people especially in rural areas.

Peninsular Malaysia has almost 100% electrification; the picture differs in east Malaysia. Sabah and Sarawak electrification rates are decidedly lower, at 77% and 67% respectively.

To increase electricity delivery to these areas, the government is sponsoring the rural electrification program, with a goal of connecting 140,000 homes to 24-hours supply.

Ensure balanced distribution of high- quality opportunities that could generate income, job opportunities, business and education throughout the nation.

Continue work on decreasing the digital gap and increasing Internet broadband service penetration through the National Broadband Plan.

Increase coverage of water supply for rural areas in Sabah and Sarawak to 90% and for Peninsular Malaysia to 98% by year 2020.

Increase coverage of electricity supply for rural areas in Sabah and Sarawak to 95% and for Peninsula Malaysia to 99.9% by year 2020.

Rural Community Income Increase to 80% that of the urban population level by 2020.

Reach a 30% Target of Rural Community Involved In Entrepreneurial Activity By 2020.

Accelerate Concept Implementation and Integrated Development Program.

Create a Knowledgeable And Skilled Society.

M I N I S T R Y ’ S O B J E C T I V E

Ensure Rural Community Attain 100% Information Technology and Communication Benefits By 2020.

Attain 100% Coverage of Basic Amenities, Utility and Infrastructure By 2020.

Eradicate hardcore poverty and reduce overall poverty rate to 2.8%.

Increase Rural Community Welfare.

Increase road development in rural areas and other less- developed areas.

Increase income and job opportunities in rural areas.

EN E RGY POV E R T Y & T H E SO LU T I ON The term to reflects lack of electricity in rural areas exacerbate the poverty of the developing countries. In Malaysia, 3.8% of the population lives below the poverty line and most of them are settled in rural areas. The electricity coverage in poor states is about 79% in comparison with 99.62% in Peninsular Malaysia. The renewable energy sources can be considered the best alternative to reduce the energy poverty of the rural areas where the grid extension through a difficult terrain and thick jungle is not possible or economic. The potential for applying renewable sources – solar, wind and hydropower – for rural electrification is investigated, especially in the poorest States. The Malaysian policies of rural electrification by applying renewable sources are explained. It is found that in Malaysia, with a maximum solar radiation, the potential for applying solar energy for electrification is too costly comparing to the outcome. However, the potential for stand-alone micro-hydropower in those areas is more viable and deliverable.

ACH I E V E AB L E OB J E C T I V E

Assisting Ministry of Rural Development to achieve the objective of helping those who live in the rural under poverty condition, Jerai Power Sdn. Bhd. and the technology provider, Elquator Sdn. Bhd. would like to propose the development of the Renewable Energy project. The technology in stand-alone micro-hydro and windmill system by ElQuator can produce and provide electricity supply for 24 hours a day, seven days a week, 365 days a year. This technology can provide electricity needs to the marginalized due to infrastructure constraints in the rural that left them as the energy poverty group.

B R I NG T H E POWE R TO WH E R E T H E Y AR E Rural electrification is the process of bringing electrical power to rural and remote areas. Rural communities are suffering from colossal market failures as the national grids fall short of their demand for electricity. As of 2017, over 1 billion people worldwide lack household electric power – 14% of the global population. Electrification typically begins in cities and towns and gradually extends to rural areas; however, this process often runs into obstacles in developing nations. Expanding the national grid is expensive and countries consistently lack the capital to grow their current infrastructure. If Malaysia are able to overcome these obstacles and reach nationwide electrification, rural communities will be able to reap considerable amounts of economic and social development.

POWE R I NG T H E N E E DY The average household in Malaysia has common electrical appliances such as television, refrigerator, lighting, standing fan other devices such as handphones utilizing around 500-watt per-hour. With the luxury of electricity available, the local community will grow. Just imagine how younger generations in rural can benefit from this if they’re given a chance to enjoy electricity like anyone else. Schools can function well; houses are brighter at night where doing school homework will not become something which is hard anymore. With the 100kWh system proposed, an estimated around 200 households, schools, community centers, clinics, and so on can enjoy the benefits.

D I S T R I B U T I ON OF T H E E L E C T R I C I T Y G E N E R AT E S 100kWh energy plant able to provide 24 hours a day electricity to 100 infrastructure and housing in the same area.

The electricity generated can be distributed evenly by installing special devices that control the distribution of energy to all residents.

With this, segregation of the electricity can be generalized and benefit all.

I L L U S T R A T I O N O F P O W E R D I S T R I B U T I O N

T E RMS & COND I T I ON S

• Price quoted only for Peninsular Malaysia (inclusive installation & commissioning) not included Sabah, Sarawak and Island. • For Sabah, Sarawak & Island, additional transportation, installation & commissioning cost is estimated additional of 20% and the price will be quoted as per site basis. • Installed systems are equipped with integrated management system locally, 3G is required for remote & centralize monitoring. • All systems will provide 24/7 electricity supply direct to the users. • Land matters regard to the installation of distribution cables, poles, etc must be resolved beforehand.

S E RV I C E & MA I N T ENANC E

The price offered includes periodic service and maintenance for three years for all systems installed. Periodic service and maintenance will ensure the system operates properly and continue to distributes electricity for the use of rural residents. Breakdown and the disruption in electricity distribution will be handled as soon as possible as the report received. To ensure the system continues to operate smoothly in providing electricity (24x7), it is recommended to establish Service & Maintenance Contract after the 3 years for a period of 15 years (5yrs + 5yrs +5yrs). Terms and conditions to be agreed by both parties.

P R I C I NG S T RUC T UR E ~ P EN I N S U L AR

24 hours 100kW energy production system

RM 3,800,000.00

complete with design, supply, deliver, install, testing and commencing inclusive of: • 1-hour smart energy storage system • Periodical service and maintenance for three (3) years • On-call services

System options of: • Stand-alone micro-hydro with 1-hour energy storage • Vertical wind turbine with 1-hour energy storage • Combination of stand-alone micro-hydro and vertical wind turbine with 1-hour energy storage

S TAND - A LON E M I C RO - H Y D RO

COS T FOR S TAND - A LON E M I C RO - HYDRO S Y S T EM

Stand-alone micro-hydro system for 100kWp:

RM2,485,155.60

Inverter 100kW:

RM 35,532.00

Storage for 100kW:

RM1,332,450.00

Service and maintenance for 3 years:

RM 250,862.40

Total:

RM4,104,000.00

Inclusive installation, manpower, logistics etc for Peninsular Malaysia

V E R T I CA L W I NDM I L L

COS T FOR V E R T I CA L W I NDM I L L S Y S T EM

Vertical windmill system for 100kWp:

RM2,485,155.60

Inverter 100kW:

RM 35,532.00

Storage for 100kW:

RM1,332,450.00

Service and maintenance for 3 years:

RM 250,862.40

Total:

RM4,104,000.00

Inclusive installation, manpower, logistics etc for Peninsular Malaysia

I N T E G R AT E D S Y S T EM

COS T FOR COMB I NAT I ON OF HYDRO AND W I NDM I L L S Y S T EM Integrated system for 100kWp: RM2,485,155.60

Inverter 100kW:

RM 35,532.00

Storage for 100kW:

RM1,332,450.00

Service and maintenance for 3 years:

RM 250,862.40

Total:

RM4,104,000.00

Inclusive installation, manpower, logistics etc for Peninsular Malaysia

100KW 24/7 with Hydro and Wind Set-up

100KW 24/7 with Hydro Set-up

200KWH

100KWH

100A

100A

100A

100A

100A

100A

100A

Inverter 100kW

Inverter 100kW

300A/1500V

300A/1500V

LOAD

LOAD

400v/1000V 40kW 3 Phase

400v/1000V 40kW 3 Phase

250A

250A

250A

250A

250A

250A

250A

40kW PMG

HG

WG

HG

WG

40kW PMG

HG

HG

HG

D I A G R A M

COMPA R I SON ~ SO L AR S Y S T EM Estimated 100kW solar system will provide approximately 3 hours direct electricity supply. An 8 set of the system requires to be able to provide 24 hours of electricity supply. 20% of total power added for a buffer due to the weather. The storage system of 2800kWp will provide sufficient energy during night or bad weather. Land area for 800kW system will be approximately 0.8 hectare.

COS T FOR 2 4 HOUR S S U P P LY F ROM SO L A R S Y S T EM

Solar panel for 2800kWp:

RM 1,194,751.00

Inverter 100kW:

RM

32,900.00

Storage for 2800kW:

RM 34,671,000.00

Complete installation:

RM 43,978,381.00

With additional 20% from total cost

W I T H T H E S T R O N G W I L L F R O M A L L A G E N C I E S , T H E E N E R G Y P O V E R T Y G R O U P C A N E N J O Y B E T T E R L I V I N G .

Thank you