Coordinated strategy for separate power systems: The case of Malaysia

Abstract

This paper introduces an analytical approach to address a set of interwined policy issues in regard to the development strategies of three separate electric power systems and the natural gas sector of Malaysia. These issues are: (i) estimation of the overall benefits of a large hydro-project which can be implemented only if all three systems decide to utilize the scheme; (ii) design of the expansion programme of the three systems so that they can utilize the hydropower when optimum for the entire sector; (iii) design of the gas sector's expansion programme according to the needs of the power sector; and (iv) estimation of an economic price of gas sales to the power sector. The approach taken here is to separate systematically this complex problem into manageable pieces while taking account of all major interactions. Results of the study were sufficiently practical to be adopted by the government and the major entities in the power and gas sectors of Malaysia.