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Diversified Sustainable Resource Availability by Optimizing Economic Environmental and Supply Risk factors in Malaysia s Power Generation Mix

Author

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  • Muhammad Mutasim Billah Tufail

    (Department of Management Studies, Bahria University, Karachi Campus, Pakistan,)

  • Maawra Salam

    (Department of Business Studies, Bahria University, Karachi Campus, Pakistan,)

  • Muhammad Shakeel

    (Department of Business Studies, Bahria University, Karachi Campus, Pakistan,)

  • Ali Gohar

    (Department of Business Studies, Bahria University, Karachi Campus, Pakistan,)

Abstract

Population growth and economic development contribute to the rise in the demand for electricity. To meet the demand, electricity generation has been relying on fossil fuels. This practice has three major drawbacks: inevitable resource depletion, environmental concerns, and supply risk. Renewable fuels are touted to be the future of sustainable power generation. However, there is a need to assess and optimize the use of the available resource in an effective and efficient manner. In order to accomplish the desired objectives, this study adopted the multi-perspective approach for efficient utilization of resources, both in terms of cost and diversification, and also aimed to propose the optimum combination of technologies for electricity generation in Malaysia. In this regard, first, the potential of the resources was identified from the Malaysian prospective compliance with the five fuel energy action plan 2020. All the five fuels were examined in terms of economic, environmental and security parameters, and evaluated in the terms of cost to measure the total exposure in monetary units. For the economic analysis, the LCOE cost quantification method was used. Similarly, for the restriction of carbon emission, a carbon-tax policy was proposed and a novel technique was designed for the quantification of excessive cost of security in the electricity generation industry. This study applied the simulation mathematical modelling and the graphical evaluation approach to optimize the power generation mix in terms of cost and diversity index. Hence, this study will assist the policy-makers in making efficient long-term policies considering the impact of various factors on total generation cost while adopting the concept of diversification for an efficient and uninterrupted power generation process.

Suggested Citation

  • Muhammad Mutasim Billah Tufail & Maawra Salam & Muhammad Shakeel & Ali Gohar, 2022. "Diversified Sustainable Resource Availability by Optimizing Economic Environmental and Supply Risk factors in Malaysia s Power Generation Mix," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 507-516.
    • Handle: RePEc:eco:journ2:2022-01-63
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    More about this item

    Keywords

    Levelized Cost of Energy; Power Generation Mix Optimization; Energy Security; Carbon Tax;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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