WWF-Malaysia calls for clarification on decision for Coal-Fired Power Plant

Kota Kinabalu – According to Tenaga Nasional Berhad (TNB), the generation capacity in Sabah (supplied by Sabah Electricity Sdn Bhd and Independent Power Producers) stands at 866.4 MW, with a total demand of 624 MW. Although supply currently exceeds demand, TNB accords the need for an increase in power generation, especially in the East Coast of Sabah, on projected future demand (reaching 1,800 MW by 2020), and to reduce the reliance of the East Coast on the East-West Grid (EWG).

In facing this predicament, WWF-Malaysia urges both the federal and state government to be guided by one of the principles of the Sabah Development Corridor, which is to ensure sustainable growth via environmental conservation. As a matter of principle, WWF is against power plants built in ecologically sensitive areas. Power plants should impact the environment minimally during construction as well as in operation.

In a recent TNB Media Retreat attended by representatives from WWF-Malaysia, TNB claimed that a coal-fired power plant is the only possible immediate solution to Sabah’s power woes. The proposed plant will have a capacity of 300MW, be located on the East Coast of Sabah, and use efficient, cost-effective and available technology.

WWF-Malaysia requests clarification from TNB and its subsidiary, SESB, regarding its stand on coal as the only viable option, and its silence on the use of alternative energy sources. Have feasibility studies on alternative energy sources been conducted, and if yes, can these results be explained to justify why these options have been rejected?

One example of an alternative source is palm oil biomass. The fact that Sabah is the largest producer of palm oil in Malaysia warrants due consideration for biomass from plantations as a potential feedstock for power generation. Palm oil biomass refers to the empty fruit bunches (EFB) which is a waste product after palm oil has been extracted.

TNB signed a Memorandum of Understanding with Felda Palm Industries Sdn Bhd and Japan’s J-Power to develop a 10MW biomass power plant in Jengka, Pahang which utilises palm oil biomass. Bearing in mind that such technology is available and, in this case, viable, is it not possible for the same to be true in Sabah, where there are more than 60 oil palm mills in the East Coast of Sabah. WWF-Malaysia would like to urge TNB to conduct a feasibility study on the amount of power that can be generated from the palm oil biomass available on the East Coast of Sabah, hence reducing the reliance on the EWG. Furthermore, this qualifies as Clean Development Mechanism (CDM) projects where carbon credits can be sold to subsidise the power generation costs and also help Malaysia meet its renewable energy target.

During a briefing at Janamanjung Power Station in Perak, explanations were provided regarding various clean-coal technologies used, such as flue gas desulphurization (FGD) which removes sulphur oxide gases from flue gas, and electrostatic precipitator (ECP) which traps dust particles in flue gas, with effectiveness stated at 65% and 99.6% respectively. While the effectiveness of clean-coal technology is questionable (refer ‘The myths and facts’, Daily Express Forum, Sunday, 25 May 2008), the first question posed to TNB is – is the proposed plant in Sabah to utilise clean-coal technology? And if it does, what mitigation actions will be taken to control carbon emissions? Apart from carbon emissions, adverse impacts to the marine ecosystem, especially due to thermal pollution, are also an issue of concern. What measures will be taken to reduce pollution on the marine environment? With the continuous rise of the price of coal, will cheaper alternatives eventually be sourced? How can we be sure that the coal under Maliau Basin will not be mined to feed this power plant in the future?

Another avenue that WWF-Malaysia would like to seek clarification is the projected demand of power, stated at an annual growth rate of 7.7%. What baseline was used to determine the annual growth rate of demand for power (according to the 2000 National Census, the population growth rate in Sabah for the period 1991 – 2000 was 4%)? Detailed analysis of growth in different types of usage (commercial or residential) has not been shown to the public. Usage type has a direct implication on the growth in demand, as energy efficiencies vary significantly between commercial and residential use. It is also important to note that demand (more specifically, reducing demand by conserving energy) can be influenced through awareness campaigns. For conservation advocates, good energy saving habits means contributing towards saving the environment. For all others, it means cost savings when it comes to paying for electricity. The government can also play a role in advocating this.

Finally, when weighing out the economics of constructing a coal-fired power plant versus environmentally-friendly power generation solutions, are the external costs such as long-term effects of pollution on people and impacts on the pristine natural heritage that Sabah is famous for (drawing tourists from all walks of life, resulting in millions of tourism dollars) considered?

For further information, please contact:
Marina Aman Sham, Communications Officer, Sulu-Sulawesi Marine Ecoregion Programme, WWF-Malaysia
Tel (office): +6088 262 420 (ext 27) / Mobile: +6 012 833 1976 / E-mail: msham@wwf.org.my