From Koon Yew Yin
The most important reason for Malaysia to only produce solar energy is because solar energy is the cheapest energy system to produce electricity in the world.
It is cheaper than geothermal, gas, coal and nuclear. In addition, Malaysia has sunshine
every day and the supply of sunshine is free and unlimited.
Moreover, the price of solar panels has been dropping in the last 50 years due to manufacturing technology improvement.
Another factor is that the new solar panel is more efficient to capture sunlight and convert it to electricity. As a result, solar energy production cost has been dropping.
The price of petroleum has been going up due to the Ukraine war. Petronas should take advantage of this situation to increase export sales and use the money to increase solar energy production. Most certainly, the petroleum price will fall when the Ukraine war is over.
With the increased production of solar energy, Malaysia can shut down all the coal and gas power plants to improve the environment and save money. We should continue to use the three hydro power stations since we have already paid for the huge construction cost.
Malaysia must follow China
China dominates the global solar panel production and has the largest share in every stage of solar panel manufacturing. More than 60% of the solar panels in the world are manufactured in China. The average cost of the solar panel in China is US$2.92/W. China made 78% of the solar cells, 72% of the solar modules, and 66% of the polysilicon produced in 2019. It also continues to lead in terms of investment, making up almost two-thirds of global large-scale solar investment.
Our government should invite solar panel manufacturers from China to open new factories to produce solar panels for local sale and for export. This foreign investment should help improve our economy.
How to increase solar energy production
The government should identify a few suitable locations and call for competitive tenders for each location and accept the best offers to avoid corruption. When Malaysia has more solar energy, we can reduce the use of fossil fuel so that Petronas can increase exports of petroleum to improve our economy.
According to a report by the International Renewable Energy Agency (IRENA), renewable energy sources are now significantly undercutting fossil fuels as the world’s cheapest source of power.
The cost of renewable energy is falling, and most renewable power is now being generated more cheaply than the cheapest new fossil fuel options.
A report by the Mercator Research Institute on Global Commons and Climate Change (MCC) found that the plummeting price of electricity produced by solar panels means the transition to renewable energy sources is “cheaper than expected”.
82% drop in cost over past decade
Since 2010, the cost of energy has dropped by 82% for photovoltaic solar panels, 47% for concentrated solar energy (CSP), 39% for onshore wind, and 29% for wind offshore.
The average lifespan of a solar panel is 25 to 30 years. Most reputable manufacturers offer production warranties for 25 years or more. The average break-even point for solar panel energy savings occurs six to 10 years after installation.
The war in Ukraine has had a significant impact on the price of fossil fuels. According to the World Bank Group, the price of Brent crude oil is expected to average US$100 a barrel in 2022, which is an increase of more than 40% compared to 2021. This is the highest level since 2013. The price of natural gas (European) is expected to be twice as high in
2022 as it was in 2021, while coal prices are expected to be 80% higher, with both prices at all-time highs.
Fuel prices have already surged higher after Russia’s invasion of Ukraine in February 2022. As of May of that same year, UCOME (used cooking oil methyl ester) average wholesale prices were higher than any other fuel, standing at US$2,607 per metric tonne of oil equivalent.
The price of fossil fuel will fall when the Ukraine war is over. - FMT
Koon Yew Yin is an FMT reader.
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
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