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Are Malaysian IPPs Inefficient?

Originally posted in BFM website: http://www.bfm.my/current-affairs-120711-teh-chi-chang-refsa.html

Recently in the news report “IPPs do not benefit from gas subsidy”, the Minister of Energy, Water and Green Technologies Datuk Peter Chin, along with Tenaga Nasional Berhad’s chief operating officer, Azman Mohd, had reportedly said that Malaysia’s average electricity tariff s 47.31 sen per kWh is gas prices were to be allowed to rise to the market level of RM 40.70 per mmBTU.

According to REFSA, Encik Azman could be quoting an average for all independent power producers (IPPs) including the ones that use coal. And with a sole focus on coal, REFSA has estimated that gas IPP power would cost 59 sen/kWh with gas at RM40.70 per mmBTU.

Podcast: Are Malaysian IPPs Inefficient?     

 

 

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