Saturday, July 24, 2010

Malaysia to have feed-in tariff in 2011

15 July 2010

KUCHING: Malaysia will implement the feed-in tariff (FIT) for renewable energy to enable users to sell excess power to the power grid as early as next year, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui.

He said the Renewable Energy Act, which will introduce the FIT mechanism, is expected to be tabled in the Dewan Rakyat by year-end.

"The FIT is a mechanism that is tried and tested in many advanced countries, notably Germany, as a way to encourage people to use renewable energy such as solar, biomas or wind.

"With the FIT, it will be easier for everyone, whether individual consumers or companies to generate renewable energy and sell their excess power back to Tenaga Nasional Berhad or regional utility companies such as Sarawak Electricity Supply Corporation and Sabah Electricity Board," he told reporters after the launch of "Green Technology Roadshow 2010" by Deputy Chief Minister Tan Sri Dr George Chan here today.

Chin said he believed the incentives to sell excess power derived from renewable energy sources to the grid would encourage more people to adopt renewable energy sources.

"I'm quite sure, like in Germany and many other countries, when there is FIT, the solar panel installation and usage will go up. A lot of usage could bring the price of solar panels down," he said.

Chin said the cost to install solar panels to generate 1KW of power for homes is RM25,000 and the average usage of a detached house is about 2kW.

"With FIT, it is a small step towards greening of this country. Based on the United Nations Framework Convention for Climate Change, we are not doing that good. Our carbon emission rate is among the highest in the world," he said.

Earlier, in his speech, Chin said the government planned various programmes to promote the application and development of green technology including the establishment of Green Technology Financing Scheme amounting to RM1.5 billion.

He said the scheme launched in January is to attract the private sector, especially the SMEs, to participate in green technology entrepreneurship.

"As of last month, the scheme received overwhelming response from the industry. The Malaysia Green Technology Corporation has certified 33 projects out of 44 applications processed.

"More than 20 applications are being processed now," he said.
Chin was disappointed no project was located in Sarawak. 

With the government's recognition of green technology, he said it was time for financial and business communities, especially in Sarawak, to utilise the financing scheme to explore the green technology sector and help bring about a more sustainable future to the country.

"Two companies from Sarawak have submitted applications. My wish is to officiate a project here soon," he said, adding that the first roadshow was intentionally started in Sarawak to increase awareness in the state.

At the launch, Dr Chan, who is also State Minister for Industrial Development, urged local companies to tap into renewable energy research and development) by utilising the Green Technology Financing Scheme.

"I hope R&D will reduce the cost of producing renewable energy power," he added. -- BERNAMA

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