The government today ruled out allowing any power plants to be built in peninsular Malaysia for the next five years, saying there was enough electricity supply to last until 2011.

"As far as Lim Keng Yaik as the minister is concerned ... no more new coal, oil or gas-fired IPPs (independent power producers) in peninsular Malaysia," Energy, Water and Communications Minister, Lim Keng Yaik said.

"Those who have written letters to set up new IPPs, I tell them through you (the media) now no more ... no more because reserve margin is too high," he said according to the Bernama news agency.

Lim did not comment on the power generation plans for Sabah and Sarawak states in East Malaysia.

The minister said Malaysia has a power reserve margin of almost 40 percent and is aiming to cut it to 20 percent.

Last year, Malaysia had a total generation capacity of 17,622 megawatts (MW), of which national utilities firm Tenaga Nasional produced 10,835 MW while IPPs generated the remaining 6,787 MW, Bernama said.

Meanwhile electricity demand in the country stood at 12,493 MW last year, resulting in a substantial excess capacity.

Wait till 2011

Malaysia last month announced its first electricity tariff hike since the Asian financial crisis nearly a decade ago, with rising costs triggering an average 12 percent increase.

The decision will boost debt-ridden utility giant Tenaga Nasional's annual revenues by RM1.5 billion and allow it to upgrade its infrastructure.

Lim, who has just returned from a visit to China, said he plans to invite its Water Resource Ministry to consider becoming involved in hydro-electric power generation in Malaysia.

"By the time 2011, I think we can start planning for a hydro-electricity station," he said.