ICA_Feb 07.pdf - Roof & Facade

Energy
MBIPV: Malaysia Building
Integrated Photovoltaics
WITH the Malaysian economy out of the economic downturn of 1997-2000
that hit the ASEAN region, coupled with an optimistic medium-term outlook
of the Malaysian economy, future demand for electricity is expected to increase
significantly. In future, demand is forecasted to grow at an average rate of 6
to 8% per annum. System peak demand is forecasted to increase from 10 GW
in 2000 to 15 GW in 2005 and 22 GW in 2010 for the peninsula. A total of 10
GW of new generation capacity will be planted up and commissioned between
2003 until the year 2010, 6 GW will be coal fired power plants and the
remaining 4 GW will be natural gas-fired power plants. This additional coal
and gas-fired generators (10 GW in total) will emit from 2010, additional 34
million tons CO 2
(coal) and 8 million tons CO 2
(gas) per year. This will lead to
a tremendous increase in GHG emissions, thus causing more serious problem
to the global environment.
To mitigate the problem, Malaysia is increasing its efforts to promote
renewable energy and energy efficiency, especially in buildings. Malaysia has
one of the fastest growing building industries
worldwide, where the corresponding energy
demand would significantly increase in the next
coming years. Conducive conditions such as
forecast increase in electricity demand, available
building spaces and the huge untapped solar
energy potential point clearly towards an
implementation of the BIPV (Building Integrated
Photovoltaic) technology in Malaysia. Considering
the synergies and benefits of BIPV application, the
technology will have an important and sustainable
impact to the buildings market and is able to
substitute part of the conventional fossil-fired
electricity generators.
There is a growing awareness and concern in
the supply of energy particularly on the issue of
carbon emissions and global warming. Under the
Third Outline Perspective Plan (OPP3), the
government is undertaking efforts to manage both
non-renewable and renewable energy (RE)
resources to cater for the demand of the rapidly
growing economy. Furthermore, to supplement the
conventional supply of energy, new sources of
energy such as renewable energy (RE) are being
encouraged. Thus, the OPP3 has adopted RE as Photovoltaic Architecture
Malaysia’s fifth fuel resource, in addition to oil,
gas, coal and hydro-power.
The baseline scenario shows that currently, biomass is being actively
developed as RE resource due to its availability. Other RE resource such as
solar energy, in general, and solar energy applications like grid-connected
BIPV, in particular, has remained in the sidelines mainly due to its relatively
high cost. In the case of grid-connected BIPV, there is a perception that the
technology is ‘exotic’ and ‘unproven’ in Malaysia. Initial assessment indicated
that the current business environment does not support widespread adoption
of grid-connected BIPV technology as a commercially viable RE technology
in Malaysia, despite the fact that the BIPV performance is better and the
absolute energy cost is lower that those systems installed in Europe and Japan.
Due to the present high initial price and lack of the enabling environment,
the economics of the BIPV technology is unattractive. However, the technology
price can only be reduced when there is a sustainable BIPV market.
Unfortunately, a sustainable market cannot be established for as long as the
economics of the technology is unfavorable. Thus, it is a ‘chicken and egg’
situation.
Without appropriate activities in the
establishment of an enabling environment for BIPV
– both for the public and private sectors – the
current state-of-affairs will undoubtedly lead to
uncoordinated efforts, characterised by no
improvement in quality issues, policy and
institutional deficiencies, inadequate investment in
improving the technical skills and no cost
reduction for the technology. A sustainable market
and thus cost reduction achieved through
improvement of technical skills, better
procurement and lower transaction costs, scale of
volume and local manufacturing cannot be
established without the appropriate activities.
Project Rationale, Objective, Outputs
and Activities
The Malaysia Building Integrated Photovoltaic
(BIPV) Technology Application Project, MBIPV, is
intended to induce the long-term cost reduction of
the non-emitting GHG technology (i.e. the
Net-Metering
photovoltaic or PV) via integration of the PV technology within building designs
and envelopes. It is aimed at creating a sustainable BIPV market in Malaysia
that will generate widespread BIPV applications. Over the lifetime of the expected
installed BIPV capacity from the project, the energy generated will avoid 65,100
tons of CO 2
emissions from the country’s power sector, in addition to contributing
towards the national energy policy objectives.
The MBIPV project will specifically focus on the market development for BIPV
technology, and building the national capacities on three major areas: (a) policy
and education; (b) technical skill and market implementation; (c) technology
development support. The project will catalyse BIPV technology acceptance
among the public, policy makers, financiers and building industry, which will
lead towards a sustainable BIPV market beyond the completion of the project.
The project objectives will be achieved via a multi-pronged approach: (1) BIPV
information services, awareness and capacity building programs; (2) BIPV market
enhancement and infrastructure development; (3) BIPV policies and financing
mechanisms program; (4) BIPV Industry
Development and R&D enhancement program.
Key Indicators, Assumption and Risks
The project’s key success indicators are: (1) Total
GHG emissions avoided from the power sector is
about 65,100 tons CO 2
over the lifetime of the
installed BIPV capacity by the year 2010, relative to
the baseline in the year 2005; (2) Increased installed
BIPV capacity by about 330% over the project
implementation period, resulting from 1.5 MWp of
new BIPV capacity by the year 2010; (3) Reduced cost
of BIPV technology by about 20% by the year 2010,
relative to the baseline in the year 2005; (4) About
30% annual growth of BIPV capacity and average 30%
BIPV cost reduction, from year 2010 to 2020, made
possible by the integration and implementation of
National BIPV programs in the 10 th Malaysia Plan
(2011-2015).
The major assumptions in achieving the project
goal and purpose are: (1) International BIPV markets
and industries grow according to business as usual;
(2) The owners of the BIPV installations comply with
the monitoring and reporting requirements of the
project; (3) Estimation of GHG emissions reduction
from various sources are consistent and reliable; (4)
Strong interest, support and commitment from the Government and industry.
The overall project risk is moderate. The different levels of risks that were
identified during the project formulation are as follows: (1) Lack of competency,
awareness and interest from the government sector – moderate risk; (2) Lack of
cooperation by the private sector – moderate risk; (3) Technology risk – low risk;
(4) Market risk – moderate risk. In terms of country eligibility, Malaysia has
ratified the UNFCCC on 13 July 1994.
The Third Outline Perspective Plan (OPP3) and the Eighth Malaysia Plan (8 th
MP) are the two main policy references for the promotion and development of
renewable energy (RE) in Malaysia. The main thrusts of OPP3 are: (a) To ensure
adequate, secure, quality and cost-effective supply of energy; (b) To promote
efficient energy utilisation and minimise negative impacts on the environment;
(c) To encourage utilisation of renewable energy (RE) to supplement the
conventional energy supply. The Fifth Fuel Policy introduced in the year 2000
under the 8 th MP, identified RE as Malaysia’s fifth fuel in addition to gas, oil,
coal and hydro. The Malaysian Government has also set a target to achieve 5%
of the national electricity production (about 600 MW)
from RE by 2005. The UNDP-GEF supported MIEEIP
and Biogen projects are clear manifestations of
Malaysia’s commitment to reduce GHG emissions
from energy-related development and economic
activities.
Building integrated photovoltaic (BIPV) provides
opportunity to utilise RE in urban areas where the
bulk of the nation’s electricity is consumed. BIPV
involves integration of PV systems into building
envelopes and also promotes demand-side
management. BIPV can technically generate 11 GWp
of electricity, based on the available roof spaces from
the Malaysia’s residential and commercial building
sectors. This technical potential capacity could
produce more than 12,000 GWh of peak electricity
and cover 20% of the current national electricity
demand. As part of the RE development under the
Fifth Fuel Policy, the Ministry of Energy,
Communications and Multimedia (MECM)
recognises the long-term potential of solar energy,
especially for PV in buildings, which will require
10 ICA Volume 1 Issue 1 2007