Awer: Review all power plants in operation and being built

PETALING JAYA: The Association of Water and Energy Research Malaysia (Awer) has questioned the Energy Commission's (ST) ability to regulate the power generation sector and wants the government to set up a technical panel to review all power plants that are operating and under construction.
Its president S. Piarapakaran said the technical panel must review design robustness, the operation and maintenance (O&M) processes and efficiency of power plants.
"The panel should report the findings of the investigation to Parliament and the report should be made public as well.
"Whatever issues and problems that are covered up are eventually passed on to consumers via electricity tariff. It is the duty of the ST to be transparent and not vice versa," Piarapakaran said in a statement yesterday.
He said the robustness of each coal power plant must be investigated as the plants are required to be designed to cater all types of coal as set in the power purchase agreement (PPA).
The ability to use (or cater) all type of coal is termed as robustness of design. If any entity that signed a PPA designed the boiler to cater only certain type of coal for any reason including to reduce the technology cost, it will jeopardise the electricity supply security as the power plant may face problem during operation.
Piarapakaran's comments refer to the May 7 incident whereby two sizeable plants, the Malakoff Corp Bhd's Tanjung Bin and 1Malaysia Development Bhd's (1MDB) Jimah coal-fired plants which had been facing leaking boiler tubes, had tripped and led to power cuts in five states. Both plants had to replace their boilers.
While the derailment showed weakness of the ST in regulating electricity generation sector, he said, the delay in construction of the 1,000 MW coal power plant is yet another blow to the ST's fast eroding credibility as a regulator.
Recently, Malakoff said its 1,000MW coal-fired Tanjung Bin power plant would be delayed by more than six months due to construction problems. The plant was scheduled for commissioning on March 16, 2016.
He noted that it was the ST that resorted to restricted bidding in 2011 and awarded the second coal power plant project to Malakoff which was one of the two unsuccessful bidders in the first restricted bidding process.
"This restricted bidding is given to brown field (location that already has a coal power plant). This also means that both ST and Malakoff should be aware of the location and problems associated to it.
"Now, why did the delay take place and why the information on the foundation problem was kept away from the regulator for a substantial period? Why did the regulator not monitor the progress of the construction of the power plant?," he asked.
Piarapakaran also questioned if the ST is able to deliver its objectives accordingly and whether a personnel revamp was needed to ensure its ability to deliver supply security is achieved without derailment.
"What about commissioners whom are supposed to be the brains of the commission to direct its staff force to the right path? Are they equipped for the position?" he asked.
On another note, Awer reminded the relevant agencies to stick to the decision to form TNB Fuel Services Sdn Bhd (TBNF), made by the Caninet in 1998, to act as the nominated coal and fuel supplier to TNB generation and independent power producers (IPPs).
The decision made to create TNBF by cabinet back then was to ensure only equitable cost is passed through and to prevent profiteering via direct purchase of fuel by power plants.
"Primary goal in electricity generation is to generate electricity at optimum cost. We would also urge the federal government to study the possibility of TNBF to report to parliament as it is an entity that was formed to protect national interest. This will allow elected representatives to understand the issues and problems faced in procuring fuel for generation sector as well as monitor performance of TNBF," he said.