MALAYSIA: Seventh Malaysia Plan, 1996-2000 (Chapter 12 - Energy)

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
1996
Effective Start Year: 
1996
Effective End Year: 
2000
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Energy, Power, Industry, Transport, Building, Multi-Sector, Other
Energy Types: 
All, Coal, Oil, Power, Gas, Renewable, Hydropower, Solar, Other
Issued by: 
Economic Planning Unit
Source: 
Economic Planning Unit (EN)
File: 
Seventh Malaysia Plan, 1996-2000 (MS)
Seventh Malaysia Plan, 1996-2000 (Chapter 12) (EN)
Overall Summary: 
The Seventh Malaysia Plan continues to emphasise the concept of sustained economic growth and social equity shared among all ethnic groups, as well as between rural and urban areas. The Plan explores; Chapter 01 - Policy Objectives and Framework; Chapter 02 - Macroeconomic Performance And Prospects; Chapter 03 - Poverty Redressal, Restructuring of Society and Income Distribution; Chapter 04 - Population, Employment And Manpower Development; Chapter 05 - Regional Development; Chapter 06 - Public Sector Programme And Its Financing; Chapter 07 - Privatization; Chapter 08 - Agricultural Development; Chapter 09 - Industrial Development; Chapter 10 - Education and Training; Chapter 11 - Infrastructure and Utilities; Chapter 12 - Energy; Chapter 13 - Science and Technology; Chapter 14 - Information Technology; Chapter 15 - Finance; Chapter 16 - Tourism and Distributive Trade; Chapter 17 - Health; Chapter 18 - Housing And Other Social Services; Chapter 19 - Environment And Sustainable Resource Management; Chapter 20 - Women And Development; Chapter 21 - Youth In Development; Chapter 22 - Development Through International Cooperation; Chapter 23 - Administrative Improvements For Development.
Access
Energy access action plan: 
Rural electrification programmes under the Plan period will comprise grid extensions and the provision of stand-alone generators consisting of solar installations, micro- and mini-hydros as well as various hybrid systems.
Energy access targets: 
A total of RM469 million will be allocated by the Federal Government for rural electrification programmes which are expected to benefit about 137,000 rural households. [...] The States of Sab~h and Sarawak will receive more than 75 per cent of the Federal Government allocation. By the end of the Plan period, electricity coverage in the rural areas is expected to increase to 93 per cent [...].
Efficiency
EE priorities: 
[I]t is imperative that efficiency improvements be undertaken in the utilization of energy. Accordingly, appropriate measures will be undertaken.
Renewable Energy
RE priorities: 
[C]ontinued efforts will be made to [...] harness the energy potential of renewable resources.---Given that hydroelectricity generation is environment-friendly and to meet the objective of the four-fuel diversification policy, measures will be taken to promote the development of the country's hydropower resources.
RE targets: 
The Pergau Hydroelectric Project, which is expected to be commissioned in 1996, will increase the energy generated by hydro sources to 5,204 GWh by the year 2000 representing a share of 7.5 per cent in total electricity generation in the country
RE action plans: 
The Pergau Hydroelectric Project,[...] is expected to be commissioned in 1996[...].---The construction of the 2,400 MW Bakun Hydroelectric Project, which has excellent hydrological characteristics, is expected to begin during the Plan period and to be fully commissioned in the year 2003.---Design work on the 165 MW Liwagu Hydroelectric Project in Sabah is expected to be completed during the Plan period. In addition, three mini hydropower projects with a total capacity of 950 kW will be undertaken at Pukak, Tagap and Tenompok in Sabah.---During the Seventh Plan period, alternative sources of energy will be identified to. ensure that the country will have a prudent fuel mix in the long term.
Environment
Energy environmental priorities: 
The main objectives of the energy sector are ensuring adequate, secure and cost-effective supplies, utilizing the resources efficiently and minimizing its negative impacts on the environment.---Environmental considerations will continue to be factored in energy planning and policy formulation with a view to reducing the negative impacts of harnessing and utilizing energy resources on the environment.---Measures will be taken to ensure that the production and utilization of coal will meet environmental standards.--- [E]nvironmental concerns will be taken into account in the formulation of a national transport fuel policy.
Energy Supply and Infrastructure
Infrastructure development priorities: 
Given that hydroelectricity generation is environment-friendly and to meet the objective of the four-fuel diversification policy, measures will be taken to promote the development of the country's hydropower resources.---[T]he focus will be to expand ,and upgrade the transmission and distribution infrastructure.---Efforts will be made to improve and reinforce the country's transmission and distribution systems to enhance operational efficiency and system reliability. In the west coast of the peninsula, the National Grid will be further strengthened with the implementation of the 500 kV north-south transmission line.---The construction of a multi-product pipeline from the Melaka and Port Dickson refineries to the KL International Airport, Sepang, and a bulk terminal within the locality of Sepang will ensure that petroleum products will be transported safely to this area.---As for gas reticulation, about 250 kilometres of pipeline will be constructed largely in the Klang Valley [...].---RM1.2 billion will be invested in the construction of a pipeline parallel to the section of POU II that stretches from Kerteh to the Klang Valley via Segamat. The completion of this parallel line by 1998 will increase the gas transmission capacity to the Klang Valley, the area with the highest rate of gas utilization.---Two coal-fired electricity generating plants will be commissioned during the Plan period, one by TNB at Klang, Selangor with a capacity of 1,000 MW that could also use gas, and another by a subsidiary of SESCo with a capacity of 100 MW at Sejingkat, Sarawak.---The construction of the 2,400 MW Bakun Hydroelectric Project, [...] is expected to begin during the Plan period and to be fully commissioned in the year 2003.---Design work on the 165 MW Liwagu Hydroelectric Project in Sabah is expected to be completed during the Plan period. In addition, three mini hydropower projects with a total capacity of 950 kW will be undertaken at Pukak, Tagap and Tenompok in Sabah.---The LLS transmission system will be upgraded with the implementation of various projects, including the 132 kV Beaufort-Sipitang Interconnection, the Kota Belud-Kudat as well as the Simpudu-Kimanis links.---Measures will be continuously taken to encourage the development of gas fields [...] Strategies, such as the exploration of deepwater areas and the integrate development of existing fields, will also be implemented to accelerate gas development [...].
Regional integration priorities: 
To promote greater cooperation in electricity supply among the ASEAN countries, the infrastructure for interchange of electricity within these countries will be further improved. Current interconnections with Thailand and Singapore are expected to be upgraded to 300 MW and 250 MW, respectively. These interconnections will form part of the ASEAN Grid in line with the objectives of regional cooperation.
Trade
Energy trade priorities: 
To maintain the presence of Malaysian crude oil as a benchmark in the international market, about 43 per cent of total volume produced will continue to be exported [...].
Investment
Energy sector investment priorities: 
[A]bout RM34 billion is expected to be invested in the electricity supply systems in the peninsula, Sabah and Sarawak. [...]. Of this total investment, about 43 per cent will be in generation activities, 35 per cent in transmission and 22 per cent in distribution.
Independent power producers: 
The electricity requirements of the nation will be adequately met during the Seventh Plan period by the utilities as well as nine IPPs, five to serve the TNB system, and four the LLS system.---[A]bout RM34 billion is expected to be invested in the electricity supply systems in the peninsula, Sabah and Sarawak. [...] This investment will be undertaken both by the utilities and IPPs.---In the peninsula, with the multiplicity of electricity generators, steps will be taken to make the grid system operator (GSa) independent.
Public Private Partnerships: 
[E]lectric-based urban public transport systems, which are emission-free, will be further expanded by the private sector with encouragement from the Government.---Measures will be continuously taken to encourage the development of gas fields by reviewing, when necessary, the fiscal and production sharing terms.
Governance
Energy management principles: 
[C]oncerted efforts will be taken to ensure that the development of energy resources will continue to contribute to the nation's economic growth and well-being.---Measures will be implemented to enhance customer satisfaction via proactive planning, dialogue sessions, marketing efforts and use of the latest technologies.
National policy structure: 
[E]nvironmental concerns will be taken into account in the formulation of a national transport fuel policy.
Technology
Clean energy technology priorities: 
The usage of natural gas, which is environment-friendly, will be promoted aggressively in the transport and manufacturing sectors to include utilization of gas by bus fleets and industries in place of polluting fuels.---[E]lectric-based urban public transport systems, which are emission-free, will be further expanded by the private sector with encouragement from the Government.---In order to support the implementation of the technology-based industrial strategies, several advanced technologies are being promoted: environment and energy-related - green materials agro-based waste - renewable energy - portable energy - pollution minimization, remediations and waste management.
Low-emission and cleaner coal technology: 
Measures will be taken to ensure that the production and utilization of coal will meet environmental standards.
Advanced fuel extraction technology: 
Efforts will be made to increase the pool of expertise and improve know-how, especially in underground mining.
Natural gas transportation technology: 
The usage of natural gas, which is environment-friendly, will be promoted aggressively in the transport and manufacturing sectors to include utilization of gas by bus fleets and industries in place of polluting fuels.
R&D renewable energy: 
Greater emphasis will be given to research and development (R&D) activities aimed at the efficient harnessing and utilization of energy resources.