Minister says unbalanced energy contracts must be used to keep rates low | Malaysia

KUALA LUMPUR, July 23 – The government of Pakatan Harapan will put an end to opaque electricity supply contracts as part of its election promises to reduce costs for consumers, said Yeo Bee Yin

. Straits Times the Minister of Energy, Technology, Science, Climate Change and the Environment, said that such agreements encouraged the excessive production of excess energy, up to 46 percent more than the dominant demand. Producer Agreements (PPIs) may be canceled as the government proposes to reduce the excess electricity margin to 25% as part of a 10-year plan that will be disclosed. soon.

Four contracts have already been canceled.

"I see that it's already not possible to remove one or two of them because of the costs and legal implications," she told The ST.

. guarantee independent producers the payment of the generated energy even if it is never used, which consequently adds overhead costs to the Tenaga Nasional Bhd (TNB) utility, which increases the pressure to increase prices.

"Money is ridiculous need of these plants." Normally, people have less than 20% margin.If we do not cut some of the plants that will arrive, we will reach 46% Straits Times

Although she refused to name the IPP agreements that are being revised, she said some were awarded just prior to [9mai1990] . General election in which Barisan Nasional finally been rejected after more than 60 years in power.

Industry analysts say the venture projects could include two power plants awarded to Edra, the 1MDB China General Nuclear Power Corporation's energy unit in 2015 to reduce the debt that reached RM 51 billion.

Yeo said that the reform of the Malaysian energy sector was urgent to achieve a long-term goal of cheaper and cleaner energy production. There are opportunities for energy sector players in different parts of the electricity sector, not just for the generation.

Of these, transmission and distribution are now fully controlled by state-owned companies such as Tenaga Nasional in Peninsular Malaysia. He also suggested strengthening the powers of the Energy Commission with tougher punitive measures.

Government maintained tariffs for domestic users during the second half, but allowed TNB to maintain an In its election manifesto, PH promised to pass renewable energy from the current two percent to 20 % of the total supply, which limits its ability to lower rates.

Yeo has already reduced nuclear energy and because of their ecological cost, large hydroelectric plants are not taken into account in large hydropower plants.

Solar energy remains the main option, with current market prices slightly lower than 40sen / kWh

The estimated production costs by the EC of 27.05sen / kWh for this year up to the end of the year. in 2020, Yeo emphasized that renewable energies can reach "grid parity" with power plants largely based on fossil fuels from Malaysia.