The Energy Regulation and Markets Review - Stikeman Elliott

Malaysia
reported that by this year, the SEB will commence construction of a new 600MW coalfired
power station in Balingian, Sarawak. On the offtake side, to date, the SEB has
entered into two power purchase agreements to supply a combined 570MW for two
new manganese and ferrosilicon alloy smelting plants in Sarawak. It is also aggressively
pursuing other buyers and is shortly expected to sign two power purchase agreements to
supply two new polycrystalline silicon plant and aluminium smelting plans in Sarawak.
The Bakun dam was initially built to meet the demand for electricity in peninsular
Malaysia. With the Bakun dam, however, being determined by the federal and Sarawak
state governments to be part of SCORE in the past year, the Energy Commission had
to undertake to develop new power projects on a fast-track basis in peninsular Malaysia
to replace such supply. Thus it had tendered out and awarded two coal-fired power plant
projects to TNB Janamanjung and Malakoff.
V
RENEWABLE ENERGY AND CONSERVATION
The past year has been a landmark period for renewable energy. Two significant laws were
passed by the Malaysian parliament, which paved the way for greater development in the
field of renewable energy. One is the enactment of the Sustainable Energy Development
Authority Act 2011 (Act 726), and other is the Renewable Energy Act 2011 (Act 725).
The new regulator for renewable energy is the Sustainable Energy Development
Authority (‘the SEDA’) that was established under the Sustainable Energy Development
Authority Act 2011 (Act 726). Its functions include:
a advising the government on all matters relating to sustainable energy including
recommending policies and laws on sustainable energy;
b implementing and managing the feed-in tariff system;
c implementing sustainable energy laws; and
d promoting and developing sustainable energy.
The laws pertaining to renewable energy are as follows:
a Renewable Energy Act 2011 ( Act 725);
b Renewable Energy (Criteria for renewable resources) Regulations 2011;
c Renewable Energy (Allocation from Electricity Tariffs ) Order 2011;
d Renewable Tariff (Feed-In- Approval and Feed-In-Tariff Rate) Rules 2011;
e Renewable Energy (Renewable Energy Power Purchase Agreement) Rules 2011;
f Renewable Energy (Technical and Operational Requirements) Rules 2011;
g Renewable Energy (Recovery Of Moneys by Distribution Licensee) Rules 2011;
and
h Renewable Energy (Administrative Fees) Order 2011.
The primary law is the Renewable Energy Act 2011, which establishes the feed-in tariff
system that sets up the following framework:
a the connection of supply line for the distribution of renewable energy;
b the priority of purchase and distribution; and
c the feed-in-tariff rates.
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