source :
http://www.seda.gov.my
MEDIA RELEASE STATEMENT BY MINISTER OF ENERGY, GREEN TECHNOLOGY AND
WATER DATUK SERI PANGLIMA DR. MAXIMUS ONGKILI ON THE FEED-IN TARIFF QUOTA ON APRIL 1, 2014
1. The Malaysian Government since the 8th Malaysia Plan in 2001 has embedded
renewable energy into the energy mix. The rationale for this is to increase the country’s
energy security, autonomy and to address climate change. This is in particular to
reduce the country’s dependency on fossil fuel and to utilize indigenous resources that
are renewable. As such, the Government has implemented the Small Renewable
Energy Power (SREP) programme which spanned a decade concluding 2010.
However, as at the end of 2010, the renewable energy (RE) projects connected to the
grid was only 61.2 MW.
2. To encourage the growth of Renewable Energy in the country, the Ministry of
Energy, Green Technology and Water (KeTTHA) came out with the National RE Policy
and Action Plan (NREPAP) that was approved by the Cabinet on 2nd April 2010. The
core framework of the NREPAP was centred on the implementation of the feed-in tariff
(FiT) which was introduced on 1st December 2011 in peninsular Malaysia whereby
there is an additional charge of 1% to the electricity bills which goes to the RE fund to
allow people to participate in the FiT programme. However, domestic electricity
consumers with less than 300 kWh consumption of electricity per month are exempted
from such contribution.
3. Currently, the percentage of approved Feed-in Tariff projects is 2% of the total
electricity generating capacity. This is based on 537.97 MW of RE capacity approved
under the FiT with baseline of 27,179 MW of total electricity generating capacity in the
country since 2010. Our target is for Renewable Energy to constitute 5% of the energy
mix in 2015.
4. With the tariff review effective Jan 1, 2014, the FiT will also include the state of
Sabah and WP Labuan. The contribution into the RE fund has also been revised to
1.6% for all participating states to increase the fund for renewable energy.
5. With this, I would like to announce The Feed-in Tariff (FiT) quota for Peninsula
Malaysia, Sabah and the Federal Territory of Labuan which will be released for
application on 2nd of May 2014.
6. The quota release for 2014 marks an important milestone in the implementation
of the FiT mechanism as the state of Sabah, and Federal Territory of Labuan will be
participating in the FiT mechanism for the first time. The total FiT quota allocated for
commercial operation by end of this year will be 65 MW and this covers the renewable
energy sources of biogas, biomass, biomass (solid waste), small hydro, solar
photovoltaics (PV) for the individuals, solar PV for the non-individuals, and a new
category for solar PV for community.
7. In addition to the inclusion of the state of Sabah and the Federal Territory of
Labuan, the Ministry of Energy, Green Technology and Water has also revised five of
the subsidiary legislations including those concerned with the Displaced Cost (DC) and
the Technical and Operational Requirements (T&O) rules.
8. The DC has been revised upwards to reflect the increase in the cost of supply of
electricity in Peninsular, Sabah and the Federal Territory of Labuan. The new DC will
allow more quotas to be released from the expected amount of the Renewable Energy
Fund (RE Fund) to be collected.
9. Whereas the amendment to the T&O subsidiary legislations include changes to
some of the definitions in the subsidiary legislations in order to standardise them with
the definitions used under the Electricity Supply Act 1990 and its associated
regulations. The amendment will also result in a reduction in transaction cost incurred
by renewable energy developers. For example, Solar PV installations with capacity of
12kW up to 425kW will only incur a connection confirmation check cost of between
RM1,000 and RM5,000.
10. Previously, installations exceeding 180kW up to 1 MW require a Power System
Study (PSS) that costs RM20,000.
11. Further refinements have been made to the FiT quota application process for
large-scale solar PV exceeding 425 kW. Application for this category must be
submitted manually to SEDA Malaysia. The applications must comply with all existing
requirements under the e-FiT system as well as other additional conditions that will be
disseminated by SEDA Malaysia through their website at www.seda.gov.my and
stakeholders engagement workshops.
12. The FiT is a policy mechanism administered and managed by the Sustainable
Energy Development Authority (SEDA) Malaysia as provided for under the Renewable
Energy Act (Act 725).
13. Below is the quota for 2014 as well as estimation for the following years until
2017:
Table 1: Schedule of Available RE Quota (MW) based on Commercial Operational
Year (2014-2017)
14. However, the allocation for FiT quota is still available for the next 8 years after
2017 for non-solar PV technology.
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