Malaysia - SETatWork - Sustainable Energy Technology at Work

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i. Pioneer status with tax exemption of statutory income for a period of 10 years or Investment Tax Allowance of 100% on the qualifying capital expenditure incurred within a period of 5 years with the allowance deducted each year of assessment to be set off against 100% of statutory incomefor each year of assessment; and ii. Equipment used for the project will be given import duty and sales tax exemption if not produced locally. Equipment purchased from local manufacturers will be given sales tax exemption. These incentives are effective for applications received from 28 October 2000 until 31 December 2010. Companies are required to implement their projects within one year from the date of approval of the incentive. 6.2.2.4 Accelerated capital allowance on equipment to maintain quality of power supply In order to reduce the cost of doing business caused by interruptions in the power supply, companies which incur capital expenses on equipment to ensure quality of power supply is given Accelerated Capital Allowance for a period of 2 years. Thus, the annual allowance is increased from between 10 and 20% to 40%. The equipment eligible for Accelerated Capital Allowance shall be determined by the Minister of Finance. This incentive is effective from year of assessment 2005. 6.2.2.5 Renewable Energy Power Purchase Agreement (REPPA) Renewable Energy Power Purchase Agreement (REPPA) is a crucial document in Renewable Energy (RE) power project as it contains all the necessary agreements that would govern the project implementation throughout is lifetime. Document would have to be heavily scrutinized by the financial institution in determining the project’s viability. A review on the existing document is essential to develop standardized REPPA that serves the needs of all parties involved particularly project developers, Tenaga Nasional Berhad (TNB) and financial institutions. The new REPPA is expected to shorten the negotiation time and would be strong enough to send positive vibes to the financial institutions as “bankable” document. Feed in tariff by fuel type (biomass, mini hydro and solar). The calculation will be based on the cost of energy production/kWh taking into account the price escalation factor. The price escalation factor will be based on the fluctuation price of fossil fuel in the market. The tariff will be determined based on a tariff structure with provision for fuel pass through. 45
6.3 Main Player and Target Groups for CDM Porject The high level of political interest in CDM has contributed significantly to create a conducive environment for the project. The same is true of the significant interest in the CDM shown by potential project developers from the private sector. This has proved that the intervention was highly relevant and had a positive bearing on the motivation of the project team to perform at its best. The location of the Project at PTM was in many ways advantageous to the project since the institution and their staff has been very much engaged in the implementation of the project. PTM has also throughout the Project period been providing highly qualified counterpart staff for the project. The analytical parts of the Project have benefited from the competencies present at PTM on most aspects of the energy sector in Malaysia. In addition, the relevant Government organizations such as NRE, MEWC and EPU (Energy Section) are members of the Project Management Group for CDM. This group has been very efficient in providing continuous policy recommendations in the project and also provided a forum for more informal talks among the key-stakeholders on the development of CDM in Malaysia. At present, the main players in the CDM are: a) Ministry of Natural Resources and Environment (Designated National Authority for CDM) b) Ministry of Energy, Water and Communications (Technical Committee for Energy CDM) c) Pusat Tenaga Malaysia (CDM Energy Secretariat) d) Forest Research Institute Malaysia ( CDM Forestry Secretariat) e) Forestry Departments of Peninsular Malaysia, Sabah and Sarawak ( manages forest lands) f) Economic Planning Unit (Energy Section) (the government policy-making agency) g) Energy Commission (develops legal and regulatory framework and advises the Ministry on policy, tariff and other matters) h) Financial institutions i) Local universities and academic institutions j) Federation of Malaysian Manufacturers k) Non-governmental organisations (NGOs) 46
Page 1 and 2: COUNTRY REPORT MALAYSIA To: T@W ‘
Page 3 and 4: 5.5 Kim Loong Methane Recovery for
Page 5 and 6: 1.1 Malaysia Energy Policy Energy h
Page 7 and 8: 1.3 Malaysia Energy Consumption Fig
Page 9 and 10: In consonance with the growth of th
Page 11 and 12: 3 CDM in Malaysia 3.1 CDM Project D
Page 13 and 14: Criterion 2: Implementation of CDM
Page 15 and 16: to that, the technology transfer an
Page 17 and 18: 4 SET Opportunities Malaysia is wel
Page 19 and 20: Table 2: Examples of Potential Proj
Page 21 and 22: would be used for heat production a
Page 23 and 24: 5.1.3 Technical details: Technical
Page 25 and 26: 5.1.8 Photo library: Figure 1: Proj
Page 27 and 28: Aims: Operation time: Feasibility s
Page 29 and 30: GHG-emission reduction: “EAU, CER
Page 31 and 32: The project estimate the GHG reduct
Page 33 and 34: GHG emission reductions: ‘EAU, CE
Page 35 and 36: 5.4.3 Technical details: 5.4.4 Ener
Page 37 and 38: Type of organisation: Host Company
Page 39 and 40: incentives from CDM will be 0.5 per
Page 41 and 42: “EAU, CER, ERU, AAU”: Methodolo
Page 43 and 44: Type of organisation: Project Parti
Page 45 and 46: iomass energy resources and non-ene
Page 47: In term of site selection, PTM will
Page 51 and 52: ANNEX 1 Project Developer CDM proje
Page 53: Project Developer Annex 3 PIN and C

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