FIVE YEAR ENERGY SECTOR PLAN FOR MALAYSIA

Abstract

Due to the recent power crises in Malaysia, the energy sector was chosen to illustrate how a project selection model can be used to formulate an optimal investment plan for meeting future demand. Under certain assumptions, a mathematical model of the power industry in Malaysia was constructed. The model was then programmed using a computer package called GAMS, which solved the model and yielded an optimal solution. The results of this program are then presented as well as a discussion on the uses and limitations of project selection models.