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EPP 10
By 2020, solar power is expected
to contribute to a minimum of 220
megawatts, as per the target under
the National Renewable Energy Policy.
Therefore, between 2015 and 2020,
Peninsular Malaysia will need to build
approximately four gigawatts of additional
power capacity to meet rising demand
while maintaining a healthy power reserve
margin.
A regulatory framework needs to be
developed, both for the feed-in tariff
(FiT) mechanism as well as for any solar
power plants that may come on stream
once the cost of centralised solar power
generation has reached parity with that of
gas. Secondly, adequate business models
need to be developed, including financing,
public-private partnerships and the role of
the Government, the incumbent generator,
TNB, and private operators. Finally, skills
and learning need to be built in the form
of small amounts of solar generation by
leveraging the FiT mechanism which was
launched on 1 December 2011.
Achievements
The Malaysia FiT programme will
be managed by Sustainable Energy
Development Authority (SEDA), a statutory
body under the Ministry of Energy, Green
Technology and Water (KeTTHA). SEDA
is a dedicated and focussed agency that
serves as a one-stop Renewable Energy
(RE) centre.
As of 28 April 2011, both the RE Bill and
the SEDA Bill were passed by the Dewan
Negara.
SEDA started its operations on 1
September 2011 and its official portal was
also launched.
PM Dato’ Sri Najib Razak on a site visit
Building Up Renewable Energy
and Solar Power Capacity
Wind and solar hybrid plant at Pulau Perhentian Kecil. Photo courtesy of Tenaga Nasional Berhad
Applications for the FiT opened on
1 December 2011, with quota for solar
photovoltaic cells of 150MW, biomass
(including solid waste) of 240MW, biogas
(including landfill) of 90MW and small
hydro of 150MW offered to any interested
party through an open online application
system. The quota allocation for solar
photovoltaic up until 2014 was almost fully
applied for within 24 hours of its launch,
whilst applications for quota allocation
for biomass, biogas and small hydro have
been similarly encouraging.
Cypark Resources Berhad (CRB) will
spearhead an initiative to build an RE
park on 26 hectares of remediated landfill
in Pajam, Nilai, Negeri Sembilan. The
proposed RE park involves the integration
of three potential resources available at
the landfills i.e. solar, landfill gas (biogas),
and waste (biocell) into a scalable
renewable energy project capable of
generating up to 10 megawatts of power
in Pajam landfill alone.
NKEA: Oil, Gas and Energy EPP 9 – EPP 10
This project will be carried out through
the private investment initiative of CRB.
In December 2011, CRB was designated
as one of the FiT approved holders, and
will be allowed to sell solar energy back
to TNB.
Moving Forward
In 2012 the target is to encourage
individuals and households to install solar
cells in their properties through the FiT
campaign. This will incentivise local solar
cell manufacturers to further exploit the
growth in the local solar market, in the
meantime, other sources of renewable
energy such as biomass, biogas & small
hydroelectricity will be continuously
promoted. The possibility of ramping up
the FiT system has been considered, but
will be subject to significant consultation
with the public. SEDA is in discussions
with banks in Malaysia to streamline
applications and draw up a framework
to finance solar and renewable energy
investment projects.
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