LETTER | On Feb 19, 2021, Peninsular Malaysia received a new powerplant - the Southern Power Generation (SPG) at Pasir Gudang with a capacity of 1,440MW.
According to Tenaga Nasional Berhad (TNB), the total generation capacity in Peninsular Malaysia is nearly 26,000MW, but the average daily capacity is below 17,000MW yet.
Thus, the excessive power plants measured in terms of electricity reserve margin is about 35%. The optimum electricity reserve margin for Peninsular Malaysia is about 15%. According to the Energy Commission (ST) report, the electricity reserve margin will reach 48% or three times more than the optimum rate by the end of 2021.
A high electricity reserve margin is a burden to the people and country. This is because the power plants' owners will receive fixed payment, although the power plants are not utilised. The people and business are forced to pay for the profit of the power plants owners through their respective electricity tariff.
The government has approved the construction of a new powerplant worth RM3.3 billion in Pulau Indah, Selangor. Most of the equipment and turbines utilised in a powerplant worth billions of ringgit are imported from foreign countries. The huge outflow of foreign currency for unused power plants further weakens the national economy.
Parti Sosialis Malaysia (PSM) urges the government to stop the construction of new fossil fuel power plants, which is a serious burden to the people and nation.
SHARAN RAJ is the national coordinator of Parti Sosialis Malaysia's bureau of environment and climate crisis.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.