Message from the Director
Economic Transformation Programme (ETP)
Environment protection and
sustainability are two topics that
from time-to-time do emerge in
IMT-GT meetings and fora but
have not been well deliberated at
length how to collaborate in these
areas. IMT-GT is about finding
ways and means to facilitate trade
and to promote economic
development within thedevelopment
subregion, particularly physical
development that if not planned and implemented
sustainably, would bring about environmental impacts at
national, subregional and global level.
The two subjects mentioned above, environment and
sustainability should be integrated in all six sectors that
IMT-GT focuses on. Any trade between nations cannot
avoid the element of sustainability becoming a
requirement in the manufacturing of products and
provision of services being traded.
Investment on and development of any transport and
infrastructure projects would require Environment Impact
Assessment (EIA) as a pre-requisite condition before any
of these projects could proceed. The same is true for the
Tourism Sector, Agriculture and Agro-Based Sector, in
the Halal Products and Services Sector – all chain
activities must be sustainable. In the Human Resource
Development Sector, the awareness towards
Environment Protection and Sustainability become even
more pronounced, as awareness campaigns and training
programmes are essential to remind relevant groups of
people and the citizens at large the negative
consequences of unsustainable development practices.
CIMT’s Bulletin this month, among others, takes a peep
at how the IMT-GT member countries, in their own ways,
pursue sustainability measures, particularly in the energy
sector, an essential commodity for any nation to fuel its
economic growth forward.
By Dr. Hassan Ibrahim
Visit our website: http://www.imtgt.org | Page 1 of 5
Malaysia’s Green Initiative in line with its
The Economic Transformation Programme (ETP) is an
initiative by the Malaysian Government launched on 21
September, 2010 to turn Malaysia into a high-income
economy by the year 2020. It is managed by the
Performance and Delivery Unit (PEMANDU), an agency
under the Prime Minister’s Department.
The programme is planned to elevate Malaysia's Gross
National Income (GNI) to US$523 billion by 2020, and
raise per capita income from US$6,700 to at least
US$15,000, meeting the World Bank's threshold for high
income nation. It is projected that Malaysia will be able
to achieve the targets set if the GNI grows by 6% per
annum.
Various sectors for development have been identified,
called National Key Economic Activities (NKEA) for the
ETP to focus on.
Renewable energy is included as one of the subsectors
in the NKEA, promoting investments for RE technologies
and manufacturing. The programme will also encourage
the use of renewable energy in Malaysia in line with its
Prime Minister’s pledge for the country to “Go-Green”
and be more environmentally sustainable in its future
development, joining hands-in-hands with the developed
countries who are signatories to the Kyoto Protocol, and
also other developing countries contributing to efforts in
the mitigation of green-house gases at the global level.
Malaysia’s Go-Green programme will further stimulate
the Green industry in the country. Two IMT-GT states in
Malaysia (Melaka and Perak) are making a significant
contribution towards making renewable energy as a
high-technology industry in the promotion of renewable
energy technologies and usage.
Melaka Making a Great Head Start on Malaysia’s Sustainability Drive

On 15 December 2010, Melaka announced the official opening of its AUO SunPower Corporation SdnBhd (AUO SunPower)
plant which was expected to generate more than 1,400 megawatts capacity annually of high-efficiency solar cells when fully
completed in 2013. Its Chief Executive Officer, Mr. Thomas H.Werner said, the plant was one of the biggest and greenest in
the world. The plant in Melaka had been recognised by the International Energy Agency (IEA) for energy efficient design with
one of the largest rainwater retention ponds in Malaysia.

The plant was officiated by Malaysia’s Prime Minister Datuk Seri Najib Tun Razak. Also present in the great event was
Melaka Chief Minister, Datuk Seri Mohd Ali Rustam and former Prime Minister, Tun Abdullah Ahmad Badawi. The plant had
been in operation since October 2010 with a 60 percent capacity and would produce 400 million high-efficiency solar cells
annually when it operates in full capacity.

AUO SunPower is a joint venture between Sunpower Corporation and AUO, a Taiwan-based entity," SunPower Corporation
is based in San Jose, California, and is among the top five companies in the world producing solar cells.The first phase
infrastructure of the fabrication plant was completed at a cost of US$600 million and employs more than 1,100 workers. The
company is expected to invest another US$600 million for the second phase of development, to begin in 2011, on the 51.2-
hectare site.AUO SunPower's export market comprises Italy, Germany and France – the biggest solar panel users in the
world.

Source: Bernama 16 December 2010

Proposed design of the AUO SunPower plant in Melaka, Malaysia.

Perak, One Day Ahead Of Melaka!

On 14 December 2010, just one day before the Malaysia’s Prime Minister officiated the solar cell plant in Melaka, his Deputy,
Tan Sri Muhyiddin Yassin officiated almost a similar event in Perak. The Deputy Prime Minister was officiating the
groundbreaking of Twin Creeks Malaysia’s solar panel factory at the Perak High Tech Park in Ipoh which would have a 100-
megawatt (MW), solar cells and panels manufacturing capacity. Present during the ceremony was the Chief Minister of
Perak, Datuk Sri Dr Zamry Abdul Kadir, and the CEO of Twin Creeks Malaysia, Dr. Siva Sivaram.

This plant is a joint venture between Twin Creeks Technologies Incorporated, Perak State Development Corporation, and
Red Solar. Twin Creeks Technologies has its headquarter in San Jose, California, a venture-backed solar technology
company with a portfolio of over 60 patent applications and operates engineering and manufacturing locations in San Jose,
Danvers, Massachusetts, Senatobia, Mississippi, and Ipoh, Malaysia and whose innovative manufacturing processes are
changing the economics of crystalline silicon photovoltaic technology. Red Solar, based in England, specialises in the
design, supply and installation of Photovoltaic systems, from the complete commercial building envelope through to one-off
residence.

The Deputy Prime Minister, in his speech mentioned that Malaysia was third after China and Germany in the manufacture of
solar cells, and under the increasing global demand, high cost of production in Germany as well as the incentives provided
under the Malaysia’s Economic Transformation Programme, Malaysia aspires to take over from Germany as the second
largest solar cells producers in the world. The company in Ipoh has 1,000 employees comprising 500 semi-skilled workers,
200 engineers and 300 managers and supervisors.

Source: New Straits Times 15 December 2010

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Renewable Energy Utilisation in Thailand, from 0.5% to 8%

Back in 2006, the Government of Thailand had declared an he objective to increase the level of renewable energy
utilization in Thailand from a level of just 0.5 percent then, to a figure of 8 percent of the total national energy consumption
by the year 2011. In reaching this target for renewable energy, biomass-based energy is expected to provide a share in
excess of 60%, reflecting the fact that Thailand is a country highly dependent on the agricultural sector and hence has
access to large amounts of waste agricultural material. The other sources of renewable energy are expected to be biogas,
wind, municipal waste, mini-hydropower, solar power as well as bio-fuel energies.

In order to achieve the 8 percent goal, the Government of Thailand had been encouraging the power generating sector to
produce some 1,900 MW from renewable sources. Independent Power Producers (IPPs) are required to adhere to the
Renewable Portfolio Standard (RPS), which has been introduced to accelerate renewable energy utilization. Under this
standard, power producers that wish to sell power to the Electricity Generating Authority of Thailand must produce 5
percent of their installed energy generating capacity from renewable sources.

Thailand is also making great progress in attracting investments in the manufacture of solar cells and panels. As of 2005,
Thailand had installed 30 MW of solar cell technology, most of which had gone into the Solar Home System. By 2020
Thailand’s primary target is to install 5,000 MW plant of solar cell technology.

Source: Undated report from Department of Alternative Energy Development and Efficiency, Thailand, (DEDE)

A solar farm near Bangkok, Thailand.

Japan-Thailand Joint Venture in Thin-Film Solar Cells Manufacturing

On 1st July 2010, Sharp Corporation of Japan signed an agreement with Thailand for the establishment of one of the
world’s largest (then) solar power generation plants, with a capacity of 73 MW, and to supply thin-film solar cell modules
and surrounding systems for the plant.

The agreement was signed with Natural Energy Development Co., Ltd (NED), a joint venture company established by DGA
(Diamond Generating Asia, Ltd., a wholly owned subsidiary of Mitsubishi Corporation, that controls IPP business in
Southeast Asia and Taiwan), CLP (CLP Holdings Ltd., the largest private power company in Asia, head office in Hong
Kong), and EGCO (Electricity Generating Public Co., Ltd., the leading IPP company in Thailand). The joint-venture
company will support the planning, funding, and management of the power generation business.

The construction of the solar power generation plant started in July 2010 and the operation is planned to start by the end of
2011. Thailand is renowned for its abundant solar radiation throughout the year. The government of Thailand targets an
increase in the amount of renewable energy, up to 20 percent of the total electricity demand by 2022. The use of solar
power generation is therefore expected to grow in the future.

Source: SHARP CENTRAL & EASTERN EUROPE Website

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Design of Tak Bai – Pengkalan Kubor Bridge Ready

Thailand had recently completed the design of a proposed third bridge connecting the country with Malaysia. The project is
under a joint-commission between Malaysia and Thailand. Thailand was expected to present it at the next joint-
commission meeting with Malaysian counterparts. The bridge would span one kilometre across The Golok River, from Tak
Bai on Thailand’s side to Pengkalan Kubor, Tumpat on Kelantan’s side.

The Malaysia-Thai border in Kelantan is expected to be linked with a third bridge in the immediate future as a move to
further spur economic activities between the two countries. The idea of fostering another new bridge was raised 10 years
ago, but the plan required an initial assessment of the nature and environment around the two border towns.

Currently, two bridges are already connecting southern Thailand with Kelantan, the first one connecting Rantau Panjang to
Sungai Golok Town completed in 1972, and the second one connecting Bukit Bunga to Buketa, completed in late 2007.
The study to build a second bridge connecting Rantau Panjang to Sungai Golok Town had also been completed. It had
earlier been agreed between the Malaysia-Thailand joint commission that the Tak Bai - Pengkalan Kubor Bridge study be
nd
done by Thailand and the 2 Rantau Panjang - Sungai Golok Bridge study be done by Malaysia.

Pengkalan Kubor Immigration building Tak Bai Immigration building

The Peninsular Malaysia – Sumatera Power Interconnection

The Peninsular Malaysia – Sumatera Power Interconnection is included as one of the Priority Connectivity Projects (PCP)
pursued by IMT-GT, and chances are that it may be the first project in the PCP list to be realised. The 1st Phase of the
project is planned to be completed by both national power utility companies in Indonesia (PLN – Perusahaan Listrik
Negara) and Malaysia (TNB – Tenaga Nasional Berhad) in 2015. This project has long been planned under the ASEAN
Energy Cooperation programme and is part of ASEAN Vision 2020 with respect to the realization of ASEAN Power Grid
(APG) by 2015.

The interconnection is aimed at enabling both countries to share their electricity supply reserve margins, including spinning
reserves. The system will allow economic energy transfer and exchange at optimized generation cost at any time by
managing the peak load of both areas – Sumatera and Peninsular Malaysia. The 1st Phase of the project is aimed at
electricity transfer with a capacity of 300 MW.

Peninsular Malaysia’s peak demand is between 09.00 to 15.00 hrs (West Indonesian Time) and Sumatera’s peak demand
is between 18.00 and 22.00. When one side requires more energy during its peak demand the other side whose demand is
low during that period can therefore supply its excess energy generation. And this works vice-versa. Such arrangement
has for many years been in place between P. Malaysia and Singapore, and between P. Malaysia and Thailand, on energy
transfer basis, with no net cross-border sales or payment.

Asian Development Bank, who is keenly guiding and supporting IMT-GT on this and other PCP projects, had completed the
economic/business model study for both PLN and TNB in March 2010. In a meeting in February 2011, the presidents of
both national power utility companies had re-indicated their keenness to move ahead with the project.

Visit our website: http://www.imtgt.org | Page 4 of 5

Pertamina Is Planning To Build 110MW of
Geothermal Power Plants in Sumatra Events in & around the Triangle
Indonesia state oil firm Pertamina is planning to build 110
megawatts (MW) of geothermal power plants in Sumatra
to meet rising energy needs. The project consists of two
55MW power plants and is currently in the planning stage.
The timescale and cost of the project are not yet finalized
Announcement
- but the Head of Jambi Province’s mining and energy
office had said Pertamina was expected to start the
geothermal drilling activities in 2011.
3rd ITITD Task Force Meeting
The geothermal plants will be built at Lempur Village, Date : 30 May 2011
Kerinci district in Jambi Province, which will need 275MW Venue : Bangkok, Thailand
of electrical power in the next five years – almost doubling
from the current peak load of 150MW. At present,
110MW of the province’s energy supplies are from power
plants owned by state-run utility firm PLN (Persero) in 5th Working Group Meeting on Trade
Jambi and the remaining 40MW from the Ombilin hydro- and Investment
power plant in neighbouring West Sumatra Province. Date : 31 May 2011
Venue : Pattaya, Thailand
The Jambi provincial government has been developing
power plants that can tap into natural resources such as
hydro, coal and geothermal. Indonesia, a vast archipelago 2nd Lima Dasar Summit
that houses hundreds of volcanoes and at least 40 Date : 1-4 June 2011
percent of the world’s geothermal energy potential, is Venue : Penang, Malaysia
hoping to exploit this renewable source of energy.

The government aims to add 4 gigawatts (GW) of

geothermal capacity from the existing 1.2GW by 2014.
Indonesia currently relies largely on coal, a much cheaper
form of energy compared to geothermal. Geothermal
plants, however, can convert an endless supply of free
volcanic heat into electricity with lower overheads and
less pollution than coal.

The Indonesian government’s plan is to provide an extra

10GW of electricity by 2012, mostly from coal, and a
further 10GW from renewable energy sources by 2014.

Source: Recharge News

http://www.rechargenews.com
Published: Tuesday, June 15 2010

CIMT Bulletin Editorial Team

ADVISOR

Dr Hassan Ibrahim hassan@imtgt.org

TEAM MEMBERS

Ritzwan Reza Ibrahim reza@imtgt.org

Hamiliana Ali hamiliana@imtgt.org

Nurshiela Ismail shiela@imtgt.org

Volcanic pond which can provide geothermal energy.

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