Environment Assignment

Energy sectors

Energy sectors were discussed in National Energy Policy 1979 in which these sectors can
be divided into three objectives which are energy supply, energy utilization and energy
environment.

Energy supply has the objective which is to ensure the adequate, secure and cost-
effective energy supply by using least cost method and varieties of energy supply sources in
both inside and outside of Malaysia.

For example, in 1981, the government was adopted the four fuel strategy which is used to
utilize non-oil energy resources, to reduce the use of fuel oil and also to supply mix of oil,
gas, hydropower and coal to substitute fuel into natural gas. However, only electricity sector
shows the greatest achievement among the other sectors. The generations of the electricity
mixture in Malaysia from 1985 to 2005 can be observed in Figure below.

From figure above, it is shows that the reducing uses of oil because of the converting uses of oil
into natural gas throughout years from year 1985 to year 2005. The independent power
producers (IPPs) are one of the electricity supplies that supply some portion of electricity to the
consumer. IPPs also can build gas power plants due to short plant up time, low capital cost and
easy operation. In addition, the natural gas reserves at the current rate are expected for about
70 years. However, in 2001, the fifth fuel policy is introduced and renewable energy is targeted
to selling up to maximum 10MW of electricity to National Grid. At the end of May 2003 until
December 2005, 48 projects were approved which 28 of it were biomass projects, 16 are the
mini-hydro projects and 4 are landfill gas projects.

Moreover, in October 2002, the biomass generation and co-generation in Malaysia Palm Oil Mill
(BioGen) was launched. This is used to the application of the renewable energy resources using
POME and used to reduce the growth rate of greenhouse gas (GHG) emissions.

Energy utilization has the objective to focus on supplying the electricity to many residents as
possible.

-Divide into energy utilization and energy supply.

-Energy utilization focus on

Energy efficiency

Demand management

Energy supply focus on

power generation

supply management

co-genertion by the industrial and commercial

Building