KLIA installs RM200mil solar power system - Saves RM2.1 million yearly

[jubilee1919]

KLIA installs RM200mil solar power system

Published: Tuesday January 28, 2014 MYT 3:02:00 PM
Updated: Tuesday January 28, 2014 MYT 3:19:33 PM

KLIA's airport solar power system, the first in the country, costs RM200mil and is expected to save the airport
about RM2.1mil annually in energy cost.

SEPANG: Malaysia Airports Holdings Bhd (MAHB) and SunEdison today jointly launched Malaysia's first airport solar power system at the Kuala Lumpur International Airport with a total investment of RM200mil.

"The solar power system is expected to save the airport about RM2.1mil annually based on its current energy costs," said MAHB chief operating officer Datuk Abdul Hamid Mohd Ali told reporters at the launch of the system.

He said the 19-megawatt (MW) direct current (DC) system was the largest in Malaysia and is interconnected to ground-mount (5MW), parking canopy (10MW) and roof-top (4MW) systems.

"We don't incur any cost for this project because we provide the under-utilised asset, while SunEdison is required to pay lease rental and royalty to us. In return, we buy the electricity at a much cheaper rate," said Abdul Hamid.

He said MAHB was looking to expand this system at its other airports especially at the short take-off and landing ports (STOL Ports) located in remote areas.

"Solar energy is one of the areas that we are seriously looking into. We may discuss with SunEdison further on the system for the other airports especially in Sabah and Sarawak," he said.

Solar technology manufacturer and provider of solar energy services, SunEdison is the Feed-in-Tariff (FiT) approval holder, granted by SEDA Malaysia.

The company is allowed to sell power generated from renewable energy sources to Tenaga Nasional Bhd for a fixed period of time.

"There is an excellent Feed-in-Tariff programme in Malaysia, and we are looking forward to help additional airports in Malaysia and around the world," said SunEdison president for Asia, Middle East, South Africa and Australia, Pashupathy Gopalan.

"In working with MAHB, we are able to help them gain an economic benefit from an under-utilised asset that they already have," he said – Bernama.

source: http://www.thestar.com.my/Business/Business-News/2014/01/28/Country-first-RM200mil-airport-solar-power-system-launched/

This is so brilliant.

KLIA will recover the project cost in 100 years.

Mahathir's half-filled KLIA needed this energy saving solar powered system? Someone's pockets must have been lined.

 

[JayBee]

Read carefully. It did not say recovery in 100 years. KLIA saves rm2.1m annually by buying cheaper electricity from this solar source. It receives rental income. As to return on investment I am sure the company has worked out their sums. Solar panels are excessive in this world so they are probably dumping this product which would otherwise sit in the warehouse. Read carefully in future.

 

[Bigfuck]

This math is wrong. Lifespan of PV systems is 40 years. In addition, power generation decreases with time and weather conditions along with the particle collection on the panels. So it is at least a 116 million loss by 40 years. If they are going on sell back scam to the power grid operators, it is a big scam that taxpayers' will end up paying later.

 

[enterprise2]

Read carefully. It did not say recovery in 100 years. KLIA saves rm2.1m annually by buying cheaper electricity from this solar source. It receives rental income. As to return on investment I am sure the company has worked out their sums. Solar panels are excessive in this world so they are probably dumping this product which would otherwise sit in the warehouse. Read carefully in future.

Now u know why nobody is rushing to follow m&ds on this!! Crazy!! Anything less than a payback of 10 years or less is a dubious investment!!

 

[laksaboy]

Sometimes profits and returns on investment aren't everything, and you're genuinely spending money to obtain a clean, renewable source of energy. Ever thought of that?

 

[palden]

Amazing how they do their sums.

 

[Narong Wongwan]

Amazing how they do their sums.

Whore Jinx buy high sell low strategy is much worse....

 

[eErotica69]

Sometimes profits and returns on investment aren't everything, and you're genuinely spending money to obtain a clean, renewable source of energy. Ever thought of that?

Right profit aren't everything. Kopi money counts in decision making also???

 

[tanwahtiu]

Uh???

easy, ask not how much it costs, how much is their cut? 10% or 25%?

Amazing how they do their sums.

 

[ForFun]

The RM200 mil investment is by Sun Edison.
KLIA save RM2.1 yearly from lower cost of electricity from this solar project. On top of this saving, KLIA also get some revenue from lease rental etc.
SunEdison sells excess power from this project to Tanaga.

 

[Poomer]

Amazing how they do their sums.

Can't blame them, m&d are not good at Mathematics.

 

[syed putra]

You dunggus! There is a scheme where you can install solar panels on the roof in malaysia. Any excess power, power company will buy from you at certain amount. Not many doing this because huge outlay cost when scheme started several years go. Now, maybe installation cost has come down so maybe there are more interests.

 

[Papsmearer]

This math is wrong. Lifespan of PV systems is 40 years. In addition, power generation decreases with time and weather conditions along with the particle collection on the panels. So it is at least a 116 million loss by 40 years. If they are going on sell back scam to the power grid operators, it is a big scam that taxpayers' will end up paying later.

The math is fine. Nothing wrong with it. There are already a lot of Feed in tariff programs around the world and I would say Malaysia is late coming to the game. (of course, singapore is even later). If you read the article, the solar panels are installed by SUNedison for free to the airport. In exhange for using the roof of KLIA (which is sitting vacant anyway, so to speak), Sunedison will pay a rent to KLIA and at the same time, sell electricity generated by the roof solar panels back to KLIA at a discount than what they would have to pay. What the article does not say is that any excessive electricity not sold to KLIA (and there will be plenty) will be sold to Tenega Nasional. This is really where Sunedison will make the money. Under the current FIT programme in Malaysia, Tenaga is supposed to buy the power from KLIA at a small premuim over what they sell. I think in this case, Tenaga negotiated a fixed price for a fixed period, after that SUnedison can sell it to Tenaga at market rate.

Sunedison has already calculated that the excess power generated will be much greater that what they are required to sell to KLIA and also that future electricity prices will rise such that they will make even more money. For KLIA, the return is infinity. Its 2.1 million divide by zero as they did not put any funds in this project. Sunedison's return is further enhanced by the fact they did not have to purchase or lease large tracts of land for a solar farm, and build the roads and infrastructure there to receive and send power to its customer. With the use of KLIA, they are already plugged into the grid and their return on their investment is much faster. All in, a win win for everyone. The Malaysians are not as stupid as people here like to portray them.

 

[cheesecake]

It's also publicity and the shiok sendiri mindset.

 

[tonychat]

The math is fine. Nothing wrong with it. There are already a lot of Feed in tariff programs around the world and I would say Malaysia is late coming to the game. (of course, singapore is even later). If you read the article, the solar panels are installed by SUNedison for free to the airport. In exhange for using the roof of KLIA (which is sitting vacant anyway, so to speak), Sunedison will pay a rent to KLIA and at the same time, sell electricity generated by the roof solar panels back to KLIA at a discount than what they would have to pay. What the article does not say is that any excessive electricity not sold to KLIA (and there will be plenty) will be sold to Tenega Nasional. This is really where Sunedison will make the money. Under the current FIT programme in Malaysia, Tenaga is supposed to buy the power from KLIA at a small premuim over what they sell. I think in this case, Tenaga negotiated a fixed price for a fixed period, after that SUnedison can sell it to Tenaga at market rate.

Sunedison has already calculated that the excess power generated will be much greater that what they are required to sell to KLIA and also that future electricity prices will rise such that they will make even more money. For KLIA, the return is infinity. Its 2.1 million divide by zero as they did not put any funds in this project. Sunedison's return is further enhanced by the fact they did not have to purchase or lease large tracts of land for a solar farm, and build the roads and infrastructure there to receive and send power to its customer. With the use of KLIA, they are already plugged into the grid and their return on their investment is much faster. All in, a win win for everyone. The Malaysians are not as stupid as people here like to portray them.

i just dun understand why sinkies like to think that malaysian are stupid.

From my experience, sinkies are much more stupid that malaysians. Tell me, in which part of the world do the people bend down and let their govt screw daily and still put on a smile and ask them if they are screwing them comfortably.

 

[tonychat]

well Done, Malaysia.. you are a step ahead than the sinkie shit losers here. Keep it up!!!

 

[Papsmearer]

It's also publicity and the shiok sendiri mindset.

I prefer this kind of govt. publicity than other govt publicity which ask that you forgive and forget insults from their angmo FT pets.

 

[neddy]

"We don't incur any cost for this project because we provide the under-utilised asset,"

What is the cost of under-utilising?

 

[Papsmearer]

"We don't incur any cost for this project because we provide the under-utilised asset,"

What is the cost of under-utilising?

The under utilized asset is the roof, numb nuts. Unless u have some other purpose for the roof that generate u income, than its underutilized.

 

[johnny333]

If you do any cost benefit analysis there are the intangibles such as social cost & benefits. For example what is the benefit of having a park with plenty of greenery

To the PAP it is wasted opportunity to generate $$$. They will of course build something using tax dollars & cheap foreign labour. The $$$ they make will end up in their pockets. This is a rent seeking attitude might benefit the PAP but for the "lesser mortals" it is a cost because they are losing a green space.

So calculations based simply on dollars & cents may not show the true cost.