RE is a luxury

RENEWABLE energy seems to be the buzzword these days. Everybody have a view on renewable energy, whether it is solar, bio-diesel or hydro. They all seem to think that it is good that Malaysia is talking about renewable energy in a big way.

However the reality is renewable energy is not a replacement for the conventional power plants. The power generated by gas and coal-fired power plants cannot be replaced by renewable energy sources.

Renewable energy is ideal to deploy when there is demand for power at peak hours. However its output is inconsistent and cannot be counted as a base-load power plant. For instance when it is a gloomy day, solar power plants would produce less electricity.

Apart from inconsistency in the supply of power, there are other distinct differences between renewable energy and electricity generated by conventional power plants such as coal and gas.

Renewable energy power plants are environmental friendly and cost less to build. The only exception is hydroelectric dams that hold a large quantity of water and affects a large surface area.

An example is the Bakun Hydroelectric dam in Sarawak that cost the federal government at least Rm8bil and covered an area the size of Singapore.

In recent weeks, the bidding to put up solar power plants dropped as low as 17.7 sen per unit. There were more than 120 bids and the average was about 26 sen per unit, way below the guided price of 34 sen per unit.

The drop in the bidding price prompted many to view that it is cheaper to have more solar power plants than those run by fossil fuels such as gas and coal, which are said to damage the environment.

However, the views are misguided. There are several reasons why solar power plants are cheap. Among them is that the price of solar panels has dropped and Malaysia is a large production base for solar panel manufacturers.

But one must not forget that electricity is a key component in producing solar panels. Hence the manufacturers are here to take advantage of the relatively cheap electricity and not to support Malaysia’s agenda to increase renewable energy sources.

Malaysia does not have the luxury to go big on renewable energy as it does not entirely replace the fossil fuel power plants.