Malaysia - SETatWork - Sustainable Energy Technology at Work

4 SET Opportunities
Malaysia is well endowed with both conventional (non-renewable) and non-conventional
(renewable) sources of energy. The renewable energy resources in Malaysia includes
biomass, solar, wind and geothermal. The status and trends in the potential of these
renewable energy technologies transferred to Malaysia and the potential of the
renewable energy projects for the status of Clean Development Mechanism will be
discussed in the later section.
In the year 2001, the Ministry of Energy, Water and Communications (formerly known as
the Ministry of Energy, Communications and Multimedia) launched the Small Renewable
Energy Power (SREP) programme to facilitate the implementation of grid-connected
power generation utilising renewable energy resources. The launch of the SREP is among
the steps taken by the Government to encourage and intensify the utilisation of
renewable energy in power generation. This is in line with the government’s decision to
intensify the development of renewable energy as the fifth fuel resource under the
country’s Fuel Diversification Policy, as stipulated in the objectives of the Third Outline
Perspective Plan for 2000 – 2010 (OPP3) and the Eight Malaysia Plan.
Small power generation plants which utilise renewable energy can apply to sell electricity
to the Utility through the Distribution Grid System. Project developers are required to
negotiate directly with the relevant Utility on all aspects relating to the Renewable
Electricity Purchase Agreement, including the selling price on a “willing-seller, willing
buyer” and “take and pay” basis. The Renewable Energy electricity producers will be
given a licence for a period of 21 years, which will be effective from the date of
commissioning of the plant. Under this Small Renewable Energy Power Programme, the
utilisation of all types of Renewable Energy, including biomass, biogas, municipal waste,
solar, mini-hydro and wind, are allowed.
Maximum capacity of a small renewable energy plant designed for sale of power to the
grid must be 10 MW. A power plant can be more than 10 MW in size, but the maximum
capacity that will be allowed for power export to the distribution grid must not be more
than 10 MW.
In order to co-ordinate the implementation of the Government’s strategy to intensify the
development of Renewable Energy as the country’s fifth fuel resource, a Special
Committee on Renewable Energy (SCORE) has been set up under the Ministry of Energy,
Water and Communications.
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