Malaysia will achieve its goal of cutting 40% CO2 emissions by 2020 with the help Siemens new gas turbine SGT5 8000H for the green energy generation field. According to the German power house Siemens, the newly launched gas turbine can help cut CO2 emissions and able to supply sufficient energy to a city of about 2.2 million people.
M. Prakash Chandran, the president and CEO of Siemens Malaysia Sdn Bhd claimed that Malaysia would be the first in Asean if they utilizing the gas turbine while South Korea would be the first in Asia where Siemens had secured a contract in South Korea and others were in final stages of negotiations.
The LNG-fuelled Bugok site of GS Electric Power and Services Ltd in South Korea will be the first place for the deployment of the new H class gas turbine. An investment of around 460 billion won was signed early last year and the commercial operation is scheduled for August 2013.
“We are capable to do full turnkey projects and a combination of solutions and systems to suit customer’s needs,” said Prakash.
Malaysia is not a coal producing country, however, the problem of utilizing coal-fired or gas still an ongoing issues in energy generation in Malaysia since gas is a depleting resource.
Tenaga Nasional and independent power producers are currently bidding to renew their power plant operating licenses and the Malaysia government is expected to announce the winning bids in October. The question of gas over coal is once again brought to the fore with the conclusion of the old power producing agreements signed decades ago.
Aside from signing the pact, the IPPs had earlier agreed to decrease their rates for 48 months below their existing power purchase agreements should they succeed in their bids. The power purchase agreements expire in 2015.
The construction of these power plants is to meet the increasing electricity needs of Malaysian homes, offices and factories.
At the moment, the country’s electricity is primarily generated by gas-powered plants. As at end of last year, it was reported that natural gas accounted for 60 per cent of Tenaga Nasional Bhd’s fuel mix to produce power then again for the reason that coal, though it entails the burning of fossil fuels, gives more cost-effective proposition. Singapore and Thailand use predominantly gas to generate energy.
However, more than the medium term, coal would play a larger role in the country’s power generation, Minister of Energy, Green Technology and Water Peter Chin Fah Kui stated.
Courtesy: Siemens Asia