Malaysia - SETatWork - Sustainable Energy Technology at Work
Malaysia - SETatWork - Sustainable Energy Technology at Work
Malaysia - SETatWork - Sustainable Energy Technology at Work
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iomass energy resources and non-energy applic<strong>at</strong>ions of this available n<strong>at</strong>ural resource,<br />
especially in the palm oil sector. Other objectives include reducing waste residue for<br />
palm oil, promoting the growth of power gener<strong>at</strong>ion and remove barriers rel<strong>at</strong>ed to<br />
technology, regul<strong>at</strong>ions and financing.<br />
Now, a full-scale model is being developed to promote the utilis<strong>at</strong>ion of biomass for<br />
power gener<strong>at</strong>ion. The RE Business Fund (REBF) has been established to support the<br />
FSM project.<br />
The REBF uses funds from the UNDP/GEF programme to support biogas implement<strong>at</strong>ion<br />
in the palm oil industry with low interest loans. The scheme also cre<strong>at</strong>es awareness<br />
within the financial sector on RE projects and explores altern<strong>at</strong>ive financing means such<br />
as Clean Development Mechanism credits.<br />
6.1.3 Small Renewable <strong>Energy</strong> Power Programme (SREP)<br />
In May 2001, the government announced the launching of the Small Renewable <strong>Energy</strong><br />
Power Programme (SREP). Small power gener<strong>at</strong>ion plants which utilize renewable energy<br />
can apply to sell electricity to the utility through the distribution grid system. Project<br />
developers are required to negoti<strong>at</strong>e directly with the relevant utility on all aspects<br />
rel<strong>at</strong>ing to the renewable electricity purchase agreement, including the selling price on a<br />
"willing-seller, willing buyer" and "take and pay" basis. The renewable energy electricity<br />
producers will be given a license for a period of 21 years, which will be effective from the<br />
d<strong>at</strong>e of commissioning of the plant. Under this Small Renewable <strong>Energy</strong> Power<br />
Programme, the utiliz<strong>at</strong>ion of all types of renewable energy, including biomass, biogas,<br />
municipal waste, solar, mini-hydro and wind, are allowed. SREP criteria are determined<br />
by SCORE:<br />
• Maximum capacity of a small renewable energy plant designed for sale of power to the<br />
grid must be 10 MW. A power plant can be more than 10 MW in size, but the maximum<br />
capacity th<strong>at</strong> will be allowed for power export to the distribution grid must not be more<br />
than 10 MW.<br />
• The distance between the gener<strong>at</strong>ing plant and the loc<strong>at</strong>ion of the interconnection<br />
point <strong>at</strong> the distribution system must be within 10 km, with connection voltage 11 KV to<br />
33 KV.<br />
• The electricity buyer will decide the load (or whether there is load) <strong>at</strong> the site of<br />
gener<strong>at</strong>ion.<br />
• No standby charges. If there is need for energy from utility, the current tariff will be<br />
used to calcul<strong>at</strong>e charges.<br />
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