Large or small hydropower, still far the most important of the renewable energy for electrical power production worldwide, providing 19% of planet’s electricity. However, hydropower on a small scale remains the most effective energy technologies to be considered for rural electrification in less develops country. The advantages of small hydro technology are the system can last for 50 years or more with less maintenance and also environmental friendly. Malaysian government has launched the Small Renewable Energy Programme (SREP) in 2001, in order to motivate the Independent Power Producer (IPP) in implementing the renewable energy projects in Malaysia. In 2009, there are 5 mini hydropower projects from 17 SREP participants, and one of them is Renewable Power Sdn. Bhd. This mini hydro is operating at Gading Reserve forest, Hulu Selangor with licensed capacity of 2.2MW. The capital cost of this project is estimated to be paid off after 10 years generation. The barriers of this mini hydro are authority issues, short-term profit minded and expensive transmission to the grid. Apart from these challenges, obviously mini hydropower is one of the most potential alternatives energy in Malaysia, suitable to the objective of Fifth Fuel Policy in implementing renewable energy as one energy resource in Malaysia.
Peninsular Malaysia
Tenaga Nasional Berhad operates three hydroelectric schemes in the peninsular with an installed generating capacity of 1,911 megawatts (MW). They are the Sungai Perak, Terengganu and Cameron Highlands hydroelectric schemes with 21 dams in operation. A number of Independent Power Producers also own and operate several small hydro plants.
Sungai Perak hydroelectric scheme, with 1249 MW installed capacity:
Sultan Azlan Shah Bersia Power Station 72 MW
Chenderoh Power Station 40.5 MW
Sultan Azlan Shah Kenering Power Station 120 MW
Sungai Piah Upper Power Station 14.6 MW
Sungai Piah Lower Power Station 54 MW
Temenggor Power