Building Investment (Jan - Feb 2017)

Special Feature
Solar energy to empower consumers
Net Energy Metering (NEM) augmenting the growth of Solar PV market.
Contributed by Sustainable Energy Development Authority (SEDA) Malaysia.
SOLAR PHOTOVOLTAIC (PV) has taken centre stage in the
renewable energy scene for the past decade. With the ever increasing
efficiency of the PV modules and decreasing price, harnessing energy
from the sun appeals to everyone - after all the sun is free.
In Malaysia the development of Solar PV market started off
with the implementation of the SURIA 1000 programme under
the Malaysia Building Integrated Photovoltaic (MBIPV) Project
(2006-2010) where capital subsidies were offered for PV systems
for residential and commercial applications. The programme was a
success and this led to the implementation of the Feed-in Tariff (FiT)
Mechanism by Sustainable Energy Development Authority (SEDA)
Malaysia on 1 December 2011. The FiT obliges distribution licensees
such as Tenaga Nasional Berhad (TNB) and Sabah Electricity Sdn
Bhd (SESB) to buy energy generated from renewable energy (RE)
producers at pre-defined FiT rate.
Solar PV under the FiT grew and due to fund constraint, no more
solar PV quota will be released under the FiT post 2017. To ensure
sustainable growth in the distributed solar PV market, the Eleventh
Malaysia Plan (RMK11) has meted out a new programme whereby
the country is implementing its 500MW capacity under the new Net
Energy Metering (NEM) scheme. The NEM is also implemented by
SEDA and the scheme commenced on 1 November 2016 and will
conclude in 2020.
As the worldwide cost of solar PV system continues to reduce
significantly each year, the energy consumer can benefit by generating
their own energy using solar PV via net metering scheme. NEM
allows an eligible consumer to install a solar PV system primarily for
his own use and the excess energy to be exported to the national grid
at a prevailing displaced cost prescribed by the Energy Commission
(ST) Malaysia. The credit shall be allowed to be rolled over for a
maximum of 24 months. This scheme is applicable to all domestic,
commercial and industrial sectors as long as they are the customers
of TNB (Peninsular Malaysia) and SESB (Sabah and FT Labuan).
With its yearly 100MW capacity quota, 90MW will be allocated
for the Peninsular and the remaining 10MW for Sabah. NEM’s target
is to hit up to 500MW after five years of its implementation. The
Ministry of Energy, Green Technology & Water (KeTTHA) Malaysia
is the responsible ministry helming this green agenda with the Energy
Commission (ST) Malaysia and Sustainable Energy Development
Authority (SEDA) Malaysia both as the regulator and implementing
agency respectively.
On 6 October 2016, in conjunction with IGEM 2016, the NEM
scheme was successfully launched by YB Datuk Seri Panglima Dr
Maximus Johnity Ongkili, the Minister of Energy, Green Technology
& Water (KeTTHA). In order to create awareness on this new
scheme to the public and industry players, SEDA Malaysia held two
stakeholder engagement sessions in both the Peninsular and Sabah
to gain insightful information among the stakeholders. The first
engagement session was held on 19 October 2016 at The Everly Hotel,
Putrajaya and the second on 7 November 2016 at Le Meridian, Sabah.
Solar PV array converts
energy from sunlight
into electricity.
The inverter converts
the electricity produced
by the solar array from
direct current (DC) to
alternating current (AC).
PV meter measures the
energy generated by the
solar PV system.
Conceptual Framework of the NEM.
The Bidirectional
Meter.
Indicates energy
usage and excess
energy produced.
Excess energy not
used by your home
goes back to the
electricity grid.
Energy used by
your home from
the electricity grid.
Utility pole /
distribution line.
YB Minister of Energy, Green Technology & Water (KeTTHA) Datuk Seri
Panglima Dr Maximus Johnity Ongkili officially launched the Net Energy
Metering Scheme in Malaysia on the 7th October 2016 in conjunction with
IGEM 2016.
Apart from promoting cleaner generation of electricity, NEM
scheme also encourages Malaysian to play an active role in RE
generation which at the same time addresses the climate agenda and
national energy security. By generating their own clean energy, typical
consumers are now prosumers whereby they are both producers and
consumers of electricity. Under the NEM, prosumers will contribute
to the reduction of CO 2 emission, hence reducing the carbon foot
print and mitigating climate change.
16 Building & Investment | www.b-i.biz