The Energy Commission of Malaysia has announced plans to boost the share of renewable electricity to 5.5 percent, compared with less than one percent currently, off the back of the passing of the Renewable Energy and Sustainable Development Authority Acts in April 2011.
Datuk Ir Ahmad Fauzi Hasan, the Commission’s CEO, said the higher percentage was achievable through the establishment of the Sustainable Energy Development Authority (SEDA Malaysia). "We have the Renewable Energy Act, feed-in tariff mechanism, infrastructures needed as well as the system, insyaallah (God willing) we can achieve it," he told the Malaysian National News Agency.
The CEO made the comments on the side lines of the 11th Hitachi Young Leaders Initiative in Hanoi (Vietnam) today, which brings together young Asians and prominent policymakers, professionals and commentators to discuss and share ideas on trends which affect Asia.
Earlier in the day, Ahmad gave a presentation on "Seeking Sustainable Energy Options", and said that Malaysia should also emulate the Japanese’s focus on energy efficiency energy. "It should be the ultimate goal if a country wants consumers to use their resources efficiently, he said. He revealed that Malaysia’s fossil fuel, gas and oil reserves are depleting and that his country needs to find something that can be an alternative substitute.
Feed-in tariff support
The Sustainable Development Authority Malaysia announced at the end of December that previously allocated quota for solar PV and biomass had been released due to the disqualification of some earlier feed-in tariff (FiT) applications because of incomplete or inaccurate documentation. The quote was first allocated when the FiT scheme was launched on 1 December.
SEDA Malaysia too has also received a directive of only allowing the Small Renewable Energy Projects in Sabah which achieved commercial operation on 1 December 2011 to enjoy the premium tariff. However other applications would be eligible for FiT until an additional 1 percent on top of electricity bill from consumers using more than 350kWh a month is collected by Sabah Electricity Sdn Bhd for contribution to the Renewable Energy Fund.
SEDA Malaysia has also capped applications for solar PV for different categories to ensure a fairer share of the pie. The applications under individual category which is primarily meant for residential applications are now limited to 12 kW each and multiple applications for the same installed site is not permitted. The cap on non-individual applications for small PV systems is fixed at 500 kW while the earlier cap of 5 MW on non-individual applications for large PV systems is maintained.
According to the CEO of SEDA Malaysia, Pn Badriyah Abdul Malek, this limit is necessary as SEDA Malaysia is required to efficiently manage the Renewable Energy Fund which is meant for all the different renewable sources. SEDA Malaysia holds the responsibility to ensure fair competition and transparency in the implementation of the feed-in tariff system as stipulated under Section 3 of RE Act 2011 and to provide an opportunity for more players to get a share of the limited quota.
Solar schools
As part of its effort to ramp up renewable energy use, Malaysia will see thirty schools, especially those located in the rural areas, being selected for a new solar energy project supported by the Energy, Green Technology and Water Ministry. Minister Datuk Seri Peter Chin Fah Kui said in December that the project would be implemented during 2012 by an independent power producer (IPP) with funding through the Malaysian Electricity Supply Industries Trust Account.
It has been estimated that the renewable energy industry could generate at least RM 70 billion (€17 billion) worth of revenue for the private sector in Malaysia, which will translate into tax revenue of at least RM1.76 billion (€0.44) for the Government by 2020.
“Another economic and social benefit from the sector is job creation. Economists have made a conservative estimate that Malaysia can generate at least 50,000 jobs from the construction, operation and maintenance of RE plants by 2020”, highlights the CEO of SEDA Malaysia.
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