Sustainable and optimum generation mix possibilities for Malaysia power sector

Malaysia\u27s energy generation mix has long depended on a single fuel. This over-dependency harms long-term energy sustainability. This has led Malaysia to find other alternative resources to generate electricity. Options include coal, leading to dependency on imported coal and increases CO2 emissionsnatural gas, though Malaysia is currently facing depletion of gas reserve and gas price fluctuationsnuclear, however the recent Fukushima incident and public acceptance are issuesor renewable energy (RE), which is interruptible and expensive. This paper proposes a study to determine the optimal long-term generation mix for Malaysia using Dynamic Programming. The price of natural gas, cost and availability of nuclear power, environmental policy and energy security are all considered in the model. The model was tested on the Malaysian power system. Result shows that an optimal generation mix for Malaysia in 2030 will be 40% coal, 38% gas, 11% renewable energy, 5% hydro, 5% nuclear and 1% oil. Increasing RE target capacity and introducing a carbon tax will affect the development of coal. On the other hand, increasing gas prices reduce the percentage of gas and increase the proportion of coal and nuclear