The abundance of hydroelectric capacity in Malaysia and its aim to use hydrogen fuel sources could aid in resolving concerns with grid stability or intermittency that lurk over the country’s path towards energy transition.
Francesco La Camera, director general of the International Renewable Energy Agency (IRENA), said Malaysia’s hydrogen goal is a step in the right direction because it plays various roles in the push for renewable energy (RE). According to La Camera, this involves using hydrogen as a fuel-like seasonal storage and to assist heavy industries where other RE sources are less advantageous.
Although it is still creating a thorough roadmap for the hydrogen economy, Malaysia recognised hydrogen fuel cells as a priority research field in 2021.
In order to speed up the production and transportation of hydrogen, the national oil and gas corporation Petroliam Nasional Bhd (Petronas) has established numerous collaborations. Sarawak, which is in the centre of the natural gas and hydropower generation space, is also investigating hydrogen utilisation.
More hydropower projects, including run-of-river and small hydro projects in regions like Sabah and Perak, are emerging as the nation seeks to increase its RE generation. According to the Irena Malaysia Energy Transition Forecast report, hydropower is expected to expand by more than 50% to 9.4 gigawatts (GW) by 2030 from its present level of 6.1 GW.
Curiously, Irena predicts that Malaysia — namely the peninsula — would be a net electricity importer by 2050 if electricity demand doubles from current levels, despite the country’s considerable RE capacity.
Contrarily, East Malaysia was a net exporter with a hydro resource potential of 26 GW, which was expected to exceed peak demand with the majority of the excess coming from Sabah.
According to data from the Energy Commission, Peninsular Malaysia’s high reserve margin—excess power generation capacity in comparison to peak demand—of almost 40% is predicted to fall to 24% by 2030, as opposed to the ideal level of 15%. Irena predicts that as demand rises, the peninsula may begin importing electricity from Sumatra, Indonesia, around 2030. Peninsular Malaysia still has a chance to seize significant portions of the transition value chain thanks to its potential 157GW of solar energy resources.
La Camera cited the minerals and rare earth used in batteries as examples, claiming that they can be recycled up to 90% and that their prices had dropped significantly over time. They can sustain themselves for a very long period in a circular economy once the world’s total battery capacity reaches a particular magnitude. It should be able to partially cover the higher demand in future systems due to the decreasing demand for the minerals in the current system, he continued.
