[COLUMNIST] The underrated essential for Malaysia’s future

THE momentum towards clean energy adoption in Southeast Asia is clear, particularly as governments attempt to decarbonize their industries. Southeast Asia's dependence on fossil fuels to meet its growing energy demand has exposed numerous vulnerabilities in the current energy landscape.

To tackle these vulnerabilities, we cannot underestimate the importance of optimizing the performance of our existing assets to their fullest potential. With the region's rapid economic development, governments must bolster existing assets by prioritizing energy efficiency measures.

In 2016, the International Energy Agency (IEA) described energy efficiency as the “hidden fuel”—for a good reason. With rising energy costs and inflation rates, being energy efficient on a larger scale is the solution for protecting profits as well as increasing productivity. Initiatives such as retrofitting facilities with advanced equipment help optimize energy usage and reduce waste. It can also decrease maintenance costs and reduce spending. The environmental impact of this is also profound - with decreased CO2 emissions, energy efficiency is a vital component of sustainable industry practices.

While hydrogen and CCUS grab headlines, energy efficiency quietly complements them in our transition. As we embrace cleaner fuels, we need to remember that enhancing efficiency is a cost-effective way to amplify sustainability efforts. The cost of transitioning itself requires Southeast Asian nations to invest USD$5 trillion to adopt renewable energy sources and support infrastructure through 2050.

Despite this, many Southeast Asian governments have endorsed various clean-energy initiatives independently and set ambitious energy transition plans – Malaysia included.

The country is expecting to see as much as RM6 billion worth of investments from now to 2040 to improve energy efficiency, as it aims to achieve an average of 21% energy savings under the National Energy Transition Roadmap (NETR). This is partly due to its overarching commitment to reduce greenhouse gas emissions by 45% across the economy by 2030 and reach net-zero emissions by 2050.

So how can Malaysia achieve this while maximizing performance?

#1 Improve what the country already has

Malaysia relies heavily on its coal-fired plants for its energy generation, yet increasing environmental concerns requires a strategic approach. Rather than dismissing these assets entirely, there is potential to optimize their efficiency and minimize their ecological footprint by implementing advanced technologies and transitioning towards cleaner energy sources. So, what would it look like?

In Indonesia, PT Amman Minerals International Tbk and Siemens Energy collaborated to replace the country’s copper and gold miner’s coal-fired power plant with a gas-fired one using the most efficient gas turbine as well as advanced technology for low NOx burners, making sure it is compliant with the most stringent environmental emission guidelines. This transition not only reduces the overall carbon footprint but improves air quality for communities residing near thae power plant, lowering the risk of respiratory diseases.

Malaysia has committed to no longer building coal-fired power plants moving forward. The good news is that the resources needed to enhance the efficiency of existing power plants are already available in the country. For example, integrating renewable energy sources alongside coal-fired plants through hybrid systems can improve overall energy efficiency and sustainability. Malaysia can leverage its existing natural gas reserves, the cleanest hydrocarbon. The next step is to explore ways to make natural gas cleaner to upgrade the coal-fired plants while simultaneously reducing their carbon emissions. Not to forget, integrating data on energy consumption trends, for effective energy efficiency planning to fully harness the potential of existing infrastructure.

#2 Proactively tackling inefficiencies

If you see thick plumes of dark smoke billowing from its smokestacks, it is an indication of incomplete combustion. Inside a plant, outdated machinery strains to meet demand, emitting excess heat and noise while struggling to convert coal into electricity. This leads to significant heat loss, with a large portion of the generated energy dissipating into the atmosphere as waste heat.

Consequently, the plant consumes more coal and resources to generate the same amount of electricity, contributing to the depletion of fossil fuel reserves and exacerbating the energy crisis. The environmental impact of this is obvious, with elevated levels of air pollution and greenhouse gas emissions further straining ecosystems and contributing to climate change.

Inefficient power plants not only waste valuable resources but also perpetuate reliance on unsustainable energy sources. Hence, there is an urgent need to transition towards cleaner, more efficient energy technologies. What needs to happen is planning ahead, looking at these risks, and including ways to use energy efficiently to manage these risks through proactive measures and strategic investments.

Recently, we completed the installation of Asia’s first Advanced Turbine Efficiency Package (ATEP) with Singapore-based utility PacificLight Power (PLP) for its Jurong Island power plant. This upgrade has successfully increased the plant’s total power output by 30MW, making it the first plant in Singapore to exceed 60% efficiency. This has also resulted in an annual carbon emission reduction of over 60,000 tonnes - the equivalent of taking over 9,300 cars off the road every year.

It is possible for Malaysia too. Existing coal-fired plants can also be transformed into more efficient and cleaner assets, contributing to long-term resilience and sustainability to ensure a smoother transition towards renewable energy.

#3 Embrace digitalization

Digitalization is one of the key enablers of decarbonization, it enables resource optimization and enhanced energy efficiency. By leveraging digital technologies, industrial plants can optimize their operations from end to end, ultimately contributing to a more sustainable future.

However, it's important to acknowledge that while digitalization brings immense opportunities, it also presents challenges. There is no one-size-fits-all approach; instead, it's about selecting the right tools for each specific use case.

Despite these challenges, digitalization technologies have their sweet spots. For example, data analytics, enhanced with AI algorithms, can optimize energy usage and identify inefficiencies within industrial processes. Blockchain technology offers a secure platform for trading energy and documenting energy sources. Digital twins of plants and individual assets enable predictive maintenance, enhancing operational efficiency and reducing downtime.

Many ASEAN countries are piloting green hydrogen projects for decarbonization, digitalization plays a crucial role in optimizing resource usage and enhancing energy efficiency throughout the production and utilization of the green fuel. For instance, in Malaysia we are working closely with Tenaga Nasional Berhad (TNB) to accelerate the decarbonization of its thermal power plants, utilizing green hydrogen produced from renewable energy sources. By embracing green hydrogen, Malaysia can enhance energy efficiency, furthering its goal of net-zero emissions by 2050.

As countries are moving from planning to action, identifying potential savings and implementing suitable measures to transform existing assets should not be overlooked. Each country in this region, including Malaysia, is navigating the complexities of its unique energy transition journey, step-by-step. As an energy technology partner, we are committed not only to supporting the production of hydrogen but working across the entire energy landscape to a more sustainable energy system.

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* Thorbjörn Fors is the Senior Vice President of Siemens Energy, Managing Director of Asia Pacific.

** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.

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