Reviving Malaysia's Nuclear Energy Program

Malaysia Energy Overview

Malaysia aims to become carbon neutral by 2050, an ambitious target requiring major changes to its energy infrastructure and policies. In this endeavor, the government has established clear renewable energy targets, with a specific aim to incorporate renewables into 70% of its power generation by the 2050. Presently, the nation's energy landscape is predominantly reliant on fossil fuels. As of 2020, fossil-based energy sources, including natural gas (42.4%), crude oil and petroleum products (27.3%), and coal (26.4%), held a dominant share in Malaysia's primary energy mix. In contrast, renewable energy sources accounted for a mere 3.9% of the total energy portfolio. To successfully realize its decarbonization objectives, Malaysia will need to diversify and increase renewable energy.

In the past, Malaysia had a robust nuclear program, complete with ambitious plans to establish two operational nuclear power plants by the year 2021. However, these plans took an unexpected turn and were indefinitely postponed, ultimately leading to the disbandment of the Malaysia Nuclear Power Cooperation in 2018. Now, with the pressing need to decarbonize and diversify its energy sources, some experts suggest nuclear power should be back on the table. Additionally, Economy Minister Rafizi Ramli and Natural Resources, Energy and Climate Change Minister Nik Nazmi Nik Ahmad have indicated they are considering nuclear as part of energy transition planning.

Nuclear Energy Development in Malaysia

In 2008, the government initiated the Nuclear Power Development Steering Committee. In 2009, then-Prime Minister Najib Razak unveiled a plan to establish a small-scale nuclear reactor. By 2011, the Malaysia Nuclear Power Cooperation (MNPC) was established as a Nuclear Energy Program Implementing Organization (NEPIO). Positioned under the Prime Minister's Department, MNPC took on the functions of the Nuclear Power Development Steering Committee. Alongside the establishment of MNPC, a budget of USD7.69 million from 2010–2012 highlighted Malaysia's strong commitment to NPP development.

Former MNPC CEO, Dr. Zamzam Jaafar speaking at Asia Nuclear Business Platform in Shanghai.

In Malaysia’s nuclear power program, operation of a NPP will most likely fall on the hands of a utility company such as Tenaga Nasional Berhad (TNB), the leading electricity utility in Malaysia. Taking such moves by the government into consideration. TNB has been preparing for nuclear power generation This includes plans for a preliminary survey, site selection, human resource development, environmental impact assessments, and construction. 

In 2009, Under the Memorandum of Understanding (MOU) between Korea Electric Power Corporation (KEPCO) and TNB, the utilities embarked on a Consultancy for Preliminary Feasibility Study (Pre-FS) of Nuclear Power Program in Malaysia. The Pre-FS was jointly carried out for twelve (12) months between 2009 and 2010. During the project, TNB sent a total of 20 employees from the Pre-FS study group to the Republic of Korea for training on Project Management and Project Engineering that were organized by KEPCO. The objective of the Pre-FS training program was to provide awareness on nuclear power and as an introduction to nuclear engineering. The scope of the training program includes the fundamentals of nuclear engineering, nuclear fuel cycle, NPP design and systems, NPP commissioning, NPP operation and maintenance, radiation protection, nuclear safety and regulation, nuclear safeguard and security, and quality assurance. 

In 2014, TNB worked together with Électricité de France (EDF) to develop a comprehensive TNB Nuclear Roadmap under the MOU between the utilities to collaborate in areas of regulatory studies and nuclear technology. The 6-month study on the Nuclear Roadmap was carried out to ensure TNB’s readiness as part-owner, developer and operator of Malaysia’s first NPP once the decision is made by the Government. TNB has been sending its employees to various courses, training programs, workshops, conferences and meetings on nuclear project development and nuclear technology, held locally and abroad  for 8 years. Most of these trainings are held under the auspices of the IAEA as part of its human resource development program for new comer countries considering nuclear power. There were also several courses that were organized through good relationship and existing cooperation between Malaysian institutions (i.e. Malaysia Nuclear Agency (MNA) and UNITEN) and Japanese institutions such as Japan Atomic Energy Agency (JAEA), Hitachi-GE, and Tokyo Institute of Technology. TNB employees are selected based on their expertise related to the particular training topics such as power plant design, generation planning, project development, construction, safety and health, legal management and policy planning. MNA plays a big role in promoting and coordinating the training programs with related organizations and stakeholders in Malaysia’s nuclear power program including TNB.

Recognizing the shortage of experienced personnel to teach nuclear engineering courses, Malaysia explored partnerships with universities and international entities. Organizations such as the European Nuclear Education Network (ENEN) and the Asian Network for Education in Nuclear Technology (ANENT) were considered to bolster the nation's capacity in this critical field.

A significant milestone in Malaysia's nuclear power journey occurred in July 2014 when Minister in the Prime Minister's Department, Dato' Mah Siew Keong, announced a comprehensive feasibility study aimed at building a nuclear power plant (NPP) within a decade. This proclamation showcased the government's commitment to nuclear energy development. To further underscore this commitment, Malaysia introduced the Atomic Energy Regulatory Bill, which aimed to separate nuclear regulators from operators. Notably, the bill included a dedicated chapter on nuclear liability, known as the Atomic Energy Regulatory – Nuclear Liability Financial Security Regulations, aligning with the Vienna Convention on Civil Nuclear Liability. By 2017, Malaysia had made substantial progress in completing the requisite studies for Phase 1 and exhibited a commendable understanding of the 19 nuclear infrastructure issues outlined by the International Atomic Energy Agency (IAEA).

Potential Nuclear Future 

Malaysia once had a robust nuclear energy program, with some experts even asserting that the nation was the most prepared in ASEAN to operate a nuclear power plant. However, after Prime Minister Najib Razak's term ended in 2018, his successor Tun Dr Mahathir Mohamad asserted that Malaysia would not pursue nuclear power plants. Consequently, plans were indefinitely postponed, leading to the disbandment of the Nuclear Power Cooperation in 2018. 

Recently, the Malaysian government has indicated a renewed openness to including nuclear power in the country's future energy mix. In our opinion, there are several compelling reasons for Malaysia to revive its nuclear energy program.

Firstly, nuclear power can help Malaysia meet its clean energy goals and transition away from fossil fuels. As a zero-emission energy source, adding nuclear to the energy portfolio would align with the government's aim of reducing carbon emissions. While renewable sources like solar and wind are preferable, nuclear can provide reliable baseload power to complement intermittent renewables.

Secondly, new SMR designs offer enhanced safety and lower costs. SMRs are smaller, factory-built reactors that utilize passive safety features and modular construction. This makes them more affordable to build and easier to operate safely, addressing public concerns. With improved SMR technology, the risks associated with nuclear power plant are diminishing.

Finally, nuclear diversifies Malaysia's energy supply and reduces dependence on imported fossil fuels. 

Over the past decade, Malaysia has made significant strides in developing the necessary infrastructure and expertise to support a nuclear power program. This foundation encompasses institutional frameworks, legal frameworks, and capacity-building initiatives—all essential components for the successful implementation of the nuclear energy program. Should Malaysia decide to revive its nuclear program, it will find itself well-positioned to do so. 

Perhaps the most vital element to consider is the politically sensitive nature of nuclear power programs. Consistent political support and unwavering commitment from the government are imperative for the success of a nuclear energy program. It is crucial that policies remain stable and conducive to the development of nuclear energy, ensuring that the nation's energy goals are met in a safe and sustainable manner.

In conclusion, Malaysia's previous experience with nuclear energy, though disbanded in 2018, has paved the way for potential future endeavors in this field. However, it is essential that any resurgence of the nuclear program be accompanied by comprehensive planning, public engagement, and unwavering political support to ensure its success and safety.

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