MEMORANDUM

To

: DATO NASIMUDIN BIN SALEM (CEO of BUMI MAJU BERHAD)

From

: TECHNICAL CONSULTANT :
: MUHAMAD ARIF ASHRAF B ABD SATAR (MH13041)
: MUHAMMAD HARIZ BIN ASAARI (MA13169)
: IZZUAN ASHRAF B ABD GHANI (MA13101)

Date

: MAY 23, 2015

Subject

: FEASIBILITY STUDY OF ALTERNATIVE ENERGY FOR NEW COMPANY

BRANCH

1.0 INTRODUCTION
This report is to evaluate two alternative electric energy sources to be applied in the new company
branch of BUMI MAJU BERHAD building at Kuantan, Pahang. After evaluating the company's
policies, the recommendations of the board of directors, requirements and feature two alternative
energy sources are selected; which are solar energy and wind energy.
1.1 BACKGROUND
Bumi Maju Enterprise has decided to open a new branch in Kuantan, Pahang at the end of this year.
This is due to the company's growth rate is very impressive. Further, location in Kuantan will
enhance our company ability to meet schedules for send our product. However, the rate of flow in
and out of the company finance is worrying because of the occurrence of wasteful energy
consumption. Therefore, the board of directors of the company have strongly recommended
searching for suitable alternatives to overcome these problems in the building branch located in
Kuantan. As we know, the new branch building has met our expectation based on location and size
regarding capable of bringing the company towards more sustainable and competitive. Using
alternative electric energy can help the growth of the company for a long time by saving money to
finance sustainable energy caving. Project transition normal electricity consumption of electrical
power to be on time for alternative installation set by the company. Energy produced must also be
capable of imposing electricity throughout the year. Alternative energy used must also be compatible

with the climate and geographical conditions in force in particular. The cost to move this project
must not be more than RM50, 000, and could be a pioneer to be developed elsewhere.

1.2 Possible Alternative

The purpose of this report is to find the best alternative energy used in the new company branch
building. I have surveyed the available alternative power, geographical aspect and interior structure
with the assistance of Joseph and Co. Realty Company, and the two power source that seem most
appropriate are wind turbine energy. The two alternatives are chosen based on operational suitability,
financial, schedule and geographical area.
2.0 ALTERNATIVE ELECTRIC ENERGY SOURCE
2.1 OPERATIONAL SUITABILITY
Solar based electrical energy typically produced by solar panel. A typical solar panel produces
around 200 watts of power but theres a little bit of variation on this, based on the size and efficiency
of the solar panel. Usually a house or office building might be using about a 5 kWh, or roughly 25
panels. When using solar panels, the company was able to save the cost of electricity payments from
RM6000 to RM8000 per year. This number is based on a comparison between the costs to be paid
when using existing electrical system. Therefore, the company reduced spending money. In addition,
the use of solar energy also brings many advantages, among which are renewable and infinite, only
need minimum maintenance, silent, does not cause pollution and reduce energy expenditure.
However, use of solar energy also has some disadvantages, such as, can only be harnessed when it is
daytime and sunny, solar collectors, panels and cells are relatively expensive to manufacture
although prices are falling rapidly, large areas of land or roof space are required to capture the suns
energy and lastly the batteries are large and heavy since need a storage space.
Wind turbine has a large vane wheel rotated by the wind to generate electricity. On average, a typical
house or building would require a small turbine with a 5-kilowatt generating capacity to meet all its
electricity needs. A machine of this size has a diameter of approximately 18 feet. The exact size
needed to power a home, however, can range from 2 kW to 5 kW (12-25 ft. Diameter) based on a
home's energy use, average wind speeds, and the turbine's height above ground. By using wind
turbine, a company may be able to save about RM12000 to RM 18000. Using wind energy has many
advantages, among them are clean from fuel source that pollute air, a domestic source of energy,

sustainable, cost effective and can be build on the existing land. However, it also have disadvantages
such as good wind sites are often located in remote locations, wind resource development may not be
the most profitable use of the land, turbines may cause noise and aesthetic pollution and turbine
blades may damage local wildlife
Solar energy produces more energy than wind turbine by 5kW while turbine energy produce 2 to 5
kW based on wind speed. Solar energy can save company cost about RM6000 to RM8000 per year
but wind energy can save cost about RM12000 to RM 18000 per year. Solar energy is silent but wind
make noise pollution due to rotating blade.
2.2 SCHEDULE
According to the contractor, the time taken to complete the installation of wiring systems is based on
the size of the building. Due to the size of the new building in Kuantan measuring 4000 square feet,
is the time taken for one to two months. Solar panel installation period is one month according to the
amount of labour used by the installation consultant. The solar panel need to be transported from
factory in Lembah Klang.

We also need to consider expertise in managing the service and

installation of solar panels. There is a consultant in Kuantan, PERMAI ENERGY BERHAD offering
service installation and repair of solar panels. We held a discussion with the director to discuss the
installation of solar panels. Based on the discussions, they were able to complete the installation
within a month.
Period for the installation of wind turbines is for three months. This period is included with the
delivery time of external components such as turbine blades, engine and energy storage. All the
components for operating the wind turbine as alternative energy sources need to be imported from
the Netherlands, it is because they were offering high-quality components and has long lifespan.
There are two consultants who have been identified to be able to complete the installation of wind
turbines, the first consultant operating in Malaysia which KIHCHIR BERHAD, while the other is
based in Thailand, on the name of Pranak Wind and Co. The two companies have extensive
specialties in carrying out operations installing and servicing wind turbines small and medium scale.
We send officials to the two companies to discuss about the use of their services and they have
agreed to the payment amount that the company would pay.

Solar

Product Delivery
From
Period
Malaysia
2 3 week

Installation
Period
1 month

Man power
Yes

Expertise
Yes

Service
Once a year

Energy
Wind

Netherland

2 month

Yes

Yes

Twice

1 month

Turbine
Note : schedule and installation period

year

2.3 Financial
The use of solar energy as a source of domestic energy is still in a small scale, particularly in
Malaysia. As a new and not fully utilized usage in domestic use, the price of solar energy for home
and commercial use is barely high. Although Malaysia are going to use alternatives and reusable
energy through Ministry of Energy, Green Technology and Water to bring Malaysia meet its target in
vision 2020 as a develop country. For standard home single storey house Malaysia, cost to install
solar energy is about RM 40 000. For a standard company setup for commercial use, the price is
about RM 60 000. Lifetime for a solar system is about 25 to 30 years. Its quite a long time to use it
with less maintenance. Since there are no moving parts, the panels just need to be clean to make sure
the light are fully absorb by the photovoltaic cell.
Wind turbine also not fully utilize in Malaysia although Malaysia get sufficient wind especially on
the shore area. Unfortunately, the wind speed decrease as it reach town, industrial area and
residential that far from shore. Cost for install for small wind turbine for small building is about RM
15 000. For large turbine for company commercial use, the price is about RM 45 000. The lifetime
for a single wind turbine is about 15 to 20 years according to manufacturer. Wind turbine need a lot
of attention which is the maintenance is high. The blades, bearings, rotor need proper maintenance to
make it safely and fully operate.
Total estimated cost for the two alternatives energy is as follows:

Company

Solar Energy
Wind Energy
PERMAI
ENERGY KIHCHIR BERHAD

BERHAD
Installation Price
RM 60 000
RM 45 000
Maintenance (per year) RM 5 000
RM 8 000
Total
RM 65 000
RM 53 000
Note: cost estimation from three different company
2.4 Geographical Area

Pranak Wind and Co

RM 50 000
RM 10 000
RM 60 000

Solar energy needs sunlight to convert it to electric. Malaysia is on equatorial region and receives 12
hours sunlight a day which is sufficient to generate electric from the sunlight especially on its peak
hour from 11am to 1pm. It has potential to develop large scale of solar energy for commercial and
domestic use for citizens. Low humidity makes solar energy more efficiency because dry and warm
place make light absorption more effective. Building that use solar system in 10 years, the value will
slightly increased
Wind energy needs wind to operate. Malaysia receives general and uniform periodic wind changes
according to the season which is southwest monsoon, northeast monsoon and interchange between
these two monsoons. Wind is stronger in northeast monsoon occur in November to March and can
reach 30 knots on the east coast of Malaysia. At shore, wind is much stronger than the inland or the
industrial area and compact area. On Industrial area, tall buildings prevent wind from flowing freely
and cause wind to slow down. Hilly areas also have strong wind because the nature make wind move
freely without obstacles. Wind turbine gives beautiful and calm scenery to the surrounding local area
and increase the value of the real estate accordingly.
Solar energy depends on light intensity to operate in optimum condition and generate more energy
while wind energy requires strong wind to generate more energy. All places in Malaysia get
sufficient sunlight to use solar system but wind are stronger on shore and hills area compare to inland
with compact people and industrial area.

3.0 CONCLUTION AND RECOMENDATION

BUMI MAJU BERHAD has reached an agreement to open a new branch in Kuantan, Pahang. We
plan to use alternative sources of energy as electric source in the new building in Kuantan. Two
alternative energy sources have been identified, namely solar energy and wind energy. The use of
renewable energy is able to economize the cost of skyrocketing electric bill payment necessarily
incurred by the company. Furthermore, it also meets the company's policies that want to use green
energy as a long-term plan for the company. First of all, solar energy has many advantages such as
renewable and infinite, only need minimum maintenance, silent, does not cause pollution and reduce
energy expenditure. On the other hand, the advantages of wind energy are clean from fuel source that
pollute air, a domestic source of energy, sustainable, cost effective and can be build on the existing
land. The importance of all of the advantages when using alternative electric source especially solar
and wind energy is it may help people to chance their perception to using clean energy. Cost for

installation both of the alternative energy is barely high due to the materials, man power cost and
consultation experiences. Although the installation fee is high for both of the alternative energy,
company get the benefits in period of time. The cost will reduce and contribute to company financial
savings. Solar energy and wind energy are suitable to implemented in Malaysia because of the
location of Malaysia on the equatorial region that have high humidity, average wind and sufficient
source of sunlight. Both of the alternative energy takes time to install within one to three months.
From our observation, we choose solar energy as alternative energy to be use at the new company
branch in Kuantan because it meets our company criteria. Solar energy is clean and silent compare to
wind turbine. For maintenance aspect, solar energy needs less maintenance and services compare to
wind energy that need more maintenance through the year and last longer. Cost for installation solar
energy is higher but within company budget range. Lastly, we choose solar because Malaysia is
located in equatorial line that receive consistent sunlight through the year and can maximize the
usage of solar energy for the company building.