The feed-in tariff is part of the Government’s plan to boost renewable energy contribution to Malaysia’s electricity-generation mix from less than 1 percent in 2009 to around 5.5 percent by 2015 and to 11 percent of all electricity generated nationwide in 2020.
“Once the act is passed, we will be setting up a new agency, Sustainable Energy Development Authority (SEDA), to oversee the implementation of renewable energy and then only we can make decision on the Feed-in-Tariff mechanism,” said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui.
While many of the details of the nation’s renewable energy plan have yet to be worked out, Chris Eng, an industry analyst with OSK Research, worried that the feed-in tariff might mean higher energy prices for consumers.
In an interview with the Malaysian Star newspaper, Eng said under the plan, “the national utility would be obliged to buy renewable electricity at above-market rates set by the government over a specific period of time from the day the system is connected to the grid.”
‘’The utility would be authorised to pass on this cost to all electricity consumers through their regular electricity bills,’’ he said
Eng estimated that the increase could be between one percent and five percent.
For additional information:
Malaysia Ministry of Energy, Green Technology and Water
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