Renewable Energy Status in Malaysia

4 December 2012

Wei-nee Chen
Sustainable Energy Development Authority Malaysia

1
 Disclaimer

The information contained in this PowerPoint slides is for general purposes only. While the
Sustainable Energy Development Authority Malaysia (“SEDA Malaysia”) endeavours to keep the
information up to date and correct, the information displayed herein is subject to changes and
may no longer be accurate after the preparation date. SEDA Malaysia is not responsible for any
errors or omissions, or for the results obtained from the use of this information, nor do we
make any representation or warranty of any kind, express or implied, about the completeness,
accuracy, reliability, suitability or availability with respect to this PowerPoint slides or the
information contained in this PowerPoint slides for any purpose. Any reliance you place on such
information is therefore strictly at your own risk. In no event will SEDA Malaysia, the Ministry of
Energy, Green Technology and Water, the Government of Malaysia, or any of their related
corporations, agents, employees or consultants be liable to you or anyone else for any decision
made or action taken in reliance on the information in this PowerPoint slides or for any
damages whatsoever, including without limitation, special, indirect, or consequential damages
arising out of or related to the use or reliance of the information contained in this PowerPoint
slides , whether by action in contract, tort or otherwise howsoever.

2
Background
 Definition of Renewable Energy
Renewable Energy (RE) is any form of primary energy
from recurring and non-depleting indigenous resources.
“Renewable resources” means the recurring and non-
depleting indigenous resources or technology as set out
in the first column of the Schedule of the RE Act 2011

4
4
 Renewable
Malaysia:
Energy
Renewable
Development
Energy Policies
in Malaysia

• RE as the 5th Fuel

8THMalaysia • Implied 5% RE in energy mix
Plan (2001 -
2005)

• Targeted RE capacity to be connected to power utility grid:

• 300 MW – Peninsular Malaysia; 50 MW - Sabah
• Targeted power generation mix:
th
9 Malaysia • 51 % natural gas, 26 % coal, 9 % hydro, 8 % oil, diesel 5 %, biomass 1 %
Plan (2010)
(2006 – 2010)
• Carbon intensity reduction target: 40% lower than 2005 levels by 2020

• Connected to the utility grid (as of 2011): 68.45 MW (20 % from 9th
RE as of 31st
MP target)
December • Off-grid: >1GW (private palm oil millers and solar hybrid)
2010

5
 Malaysian National Renewable Energy Policy & Action Plan

Approved by Cabinet on 2nd April 2010

Policy Statement:
Enhancing the utilisation of indigenous renewable energy resources to
contribute towards national electricity supply security and sustainable
socio-economic development.
Objectives:
To increase RE contribution in the national power generation mix;
To facilitate the growth of the RE industry;
To ensure reasonable RE generation costs;
To conserve the environment for future generation; and
To enhance awareness on the role and importance of RE.

6
 Strategic Thrusts of the National RE Policy

Strategic Thrust 2: Provide Strategic Thrust 3: Intensify

Conducive Business Human Capital
Environment for RE Development

Strategic Thrust 1:
Introduce Legal and
Regulatory Framework

Strategic Thrust 5: Create

Strategic Thrust 4: Enhance
Public Awareness & RE
RE Research and
Policy Advocacy
Development
Programmes

7
 25,000
National RE Goals (excl EPP-10)
2050:
2050 21.4 GW (73%)
Solar PV 2030 11.5 GW44.2 GWh (24%)
20,000
Solid Waste 3.5 GW
2020
Mini Hydro
2.1 GW
Biogas
15,000
Biomass
MW

10,000
2030:
4,000 MW (17%)
2020: 17.2 GWh (12%)
2,080 MW (11%)
2015: 11.3 GWh (9%)
5,000 985 MW (6%)
5.4 GWh (5%)

-
2033

2042
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032

2034
2035
2036
2037
2038
2039
2040
2041

2043
2044
2045
2046
2047
2048
2049
2050
Year 8
8
Malaysia: Technical Potential of PV
 Population 28.8 million (2012)
 Lies directly within the sunbelt
 Technical potential of PV ≈ 7.8 TWh,
about 21% of residential and commercial
electricity demand in 2005

9
Regulatory Framework
 Renewable Energy Act 2011

RE Act: an Act to provide for the establishment and implementation of

a special tariff system to catalyze the generation of renewable energy
and to provide for related matters.

Comprises of 9 Parts and 65 Clauses

 Part I: Preliminary
 Part II: FiT System
 Part III: Connection, Purchase and Distribution of RE
 Part IV: Feed-in Tariff
 Part V: Renewable Energy Fund
 Part VI: Information Gathering Powers
 Part VII: Enforcement
 Part VIII: General
 Part IX: Savings and Transitional
11
Passed in Parliament: 27th April 2011
 Subsidiary Legislations

1. Renewable Energy (Feed-in Approval and Feed-in Tariff Rate)

Rules 2011
2. Renewable Energy (Technical and Operational Requirements)
Rules 2011
3. Renewable Energy (REPPA) Rules 2011
4. Renewable Energy (Criteria for Renewable Resources)
Regulations 2011
5. Renewable Energy (Allocation from Electricity Tariffs) Order
2011
6. Renewable Energy (Recovery of Moneys by Distribution
Licensee) Rules 2011
7. Renewable Energy (Administrative Fees) Rules 2011
http://seda.gov.my/go-home.php?omaneg=00010100000001010101000100001000000000
000000000000&s=1207
12
 Feed-in Approval & Feed-in Tariff Rules 2011

1) Individuals (≥ 21 years)
Malaysians
Foreign individuals: limited to solar ≤ 72 kWp

2) Companies (ROC)
All legally registered companies and businesses
Direct ownership
Shareholding limitations:
1)DL: ≤ 49% within its distribution area
2)Foreign companies: ≤ 49%

3) Other entities (body corporate, society, co-operative

society, firm, local authority)
13
Giving False or Misleading Information

Para 26 (Feed-in Approval & Feed-in Tariff Rate

Rules 2011) A person who fails to disclose or
omit to give any relevant information or
document to the Authority under these Rules,
or provides to the Authority under these Rules
any information or document that he knows or
has reason to believe is false or misleading,
commits an offence and shall, on conviction, be
liable to a fine not exceeding RM300,000 or
imprisonment for a term not exceeding 3 years
or both.

14
 SEDA Malaysia

– SEDA Malaysia established on 1st September 2011 under the

SEDA Act 2011.
– implement, manage, monitor & review the Feed-In Tariff
system
– advise the Minister & Government Entities on all matters
relating to sustainable energy
– to promote & implement national policy objectives for RE
– implement sustainable energy laws including the Renewable
Energy Act & recommend reforms
– promote private sector investment in sustainable energy sector
– measures to improve public awareness
– act as focal point on matters relating to sustainable energy &
climate change matters relating to energy 15
FEED IN TARIFF MECHANISM
 Source of Fund for FiT
Source of Funding
1.0%
 2011 - additional tariffs collection
15.2% from electricity bills
38.4%  Every RM100/Month - RM1 for
RE
20.2%
 Additional 1% (proposed in 2013)
1% The size of RE fund will determine the
25.3% RE target for Malaysia
Benefit
 polluters pay concept
Subsidized Fuel for Power Generation  will not affect 75% of electricity
Generation cost consumers (≤ 300 kWh/mth)
Transmission & Distribution Cost  encourages EE and DSM
Customer Service Charge
FiT levy
17
RE Law Schedule: Biogas

18
RE Law Schedule: Biomass

19
RE Law Schedule: Small Hydropower

20
Basic FiT Rate Solar PV

21
Bonus FiT Rate Solar PV

22
 Potential Impact of National RE Policy by Year 2020

 Minimum RM 2.1 billion savings of external cost to mitigate CO2

emissions (total 42 million tonnes avoided from 2011 to 2020, on
the basis of RM 50 per tonne of external cost);

 Minimum RM 19 billion of loan values for RE projects, which will

provide local banks with new sources of revenues (at 80% debt
financing for RE projects);

 Minimum RM 70 billion of RE business revenues generated from

RE power plants operation, which can generate tax income of
minimum RM 1.75 billion to Government;

 > 50,000 jobs created to construct, operate and maintain RE power

plants (on the basis of 15-30 job per MW).
23
FiT Implementation on 1st December
2011
 e-FiT Online System

• FiT quota approvals on ‘first come, first served basis’ – upon submission of
complete application & document
25
• FiT quota is dynamic
SEDA Malaysia Portal: www.seda.gov.my

26
 Annual RE Quota as on 1st Dec 2011 (Up to 2014)

Biogas Biogas - Biomass Solid- Small Solar Solar Total

Sewage Waste Hydro PV < PV > (MW)
1MW 1MW

Year MW MW MW MW MW MW MW

2011/
2012 20 10 60 20 30 10 40 190

2013 20 10 50 30 30 10 40 190

H1 2014 10 5 25 15 45 5 20 125

Source: www.seda.gov.my
27
 No. of Approved Applications
(31st October 2012)
Biogas, 12, 2% Small Biomass, 11,
Hydro, 2%
13, 2%

Solar PV (Non-
Ind), 121, 18%

Solar PV (Ind),
511, 76%

28
28
Approved Capacities (MW) (31st October 2012)
Biogas,
19.33, 5%

Solar PV
(Non-Ind), Biomass,
153.47, 40% 102.39, 26%

Small Hydro,
100.55, 26%
Solar PV
(Ind), 10.6,
3% 29
 Way forward: 2,000 Solar Rooftop Programme
Sustainable Energy Development Authority (Seda)
Malaysia chairman Tan Sri Dr Fong Chan Onn told
a press conference: “We have allocated the 2,000-
household quota this year, and next year we will
allocate a further 10,000. Our target is to
encourage the massive involvement of the public
in solar power systems.”
Source: Green Prospect Asia (August 2012)

• 2,000 homes (2 MW Q4 2012, 6 MW 2013)

released on 24th September 2012
• Rules: max 12 kW per application
• Each individual max. 2 applications
• Go through the usual e-FiT online system
30
Proposed Changes to FiT (Effective
2013)
 PROPOSED ADJUSTED DEGRESSION : BASIC RATE

Renewable energy Solar PV Basic Annual Proposal

installation having an
installed capacity of rate Degression 2013 2014
1. up to and including 4
kilowatts RM 1.23 8% 8% 8%
2. above 4 kilowatts, and
up to and including 24 RM 1.20 8% 8% 8%
kilowatts
3. above 24 kilowatts,
and up to and RM 1.18 8% 12% 12%
including 72 kilowatts
4. above 72 kilowatts,
and up to and RM 1.14 8% 12% 12%
including 1 megawatts
5. above 1 megawatts
kilowatts, and up to
and including 10 RM 0.95 8% 12% 12%
megawatts
6. above 10 megawatts
kilowatts, and up to
and including 30 RM 0.85 8% 12% 12%
megawatts 32
 PROPOSED DEGRESSION: BONUS RATE

Renewable energy Solar PV Bonus Annual Proposal

installation having any one
or more of the following rate degression 2013 2014
criteria in addition to basic
rate

1. use as installation in
building or building +RM 0.26 8% 8% 8%
structures

2. use as building
materials +RM 0.25 8% 8% 8%
3. use as locally
manufactured or
assembled solar +RM 0.03 8% 0% 0%
photovoltaic module
4. use of locally
manufactured or
assembled solar +RM 0.01 8% 0% 0%
inverters
33
 Other Proposed New Rules on Solar PV

• Any non-individual feed-in approval holder (FiAH) that has been

revoked due to failure to comply with any of the feed-in approval
(FiA) conditions will not be eligible to apply for any new solar PV
for a moratorium of two (2) years;
• Ultimate shareholder limited to 5 MW solar PV – need to declare
in advance;
• Rental of rooftop – non-revocable option-to-rent agreement;
• Proposed additional processing fees for changes, assignment
/transfer of FiA;
• PSS requirement – one per application otherwise a letter from
distribution licensee is required to support multiple connections;
• For more details, visit www.seda.gov.my (download/ presentation
materials/28 November 2012 & 18 September 2012 workshops)
34
PV applications in Malaysia (Grid-
connected)
Residential: Solar Enclave Setia Eco Park, Malaysia

36
PV Systems in Malaysia

37
470 kW, Macglo Steel Service Center, Shah Alam
646 kW, Robert Bosch (M) Sdn Bhd, Bayan Lepas

38
685 kW, PETRONAS @ KLCC Tower, Malaysia

39
8 MW, Cypark Resources Bhd, Pajam, Malaysia

40
 Thank you

SEDA Malaysia, Phone : +603-8870 5800

Galeria PjH, Level 9 Email: fit@seda.gov.my
Jalan P4W, Persiaran Perdana, Web: www.seda.gov.my 41
Presint 4, 62100 Putrajaya, Malaysia.