Renewable Energy Status in Malaysia - Perihal MIDA

1 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.

2 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.

3 4. 4. Renewable Malaysia : Energy Renewable development Energy Policies in Malaysia RE as the 5th Fuel 8 THMalaysia 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): 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 .

4 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 GW (73%). Solar PV 2030 GWh (24%). 20,000. Solid Waste GW. 2020. Mini Hydro GW. Biogas 15,000. Biomass MW. 10,000. 2030: 4,000 MW (17%). 2020: GWh (12%). 2,080 MW (11%). 2015: GWh (9%).

5 5,000 985 MW (6%). 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 million (2012). Lies directly within the sunbelt Technical potential of PV 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.

6 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. 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 ).

7 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 &.

8 Climate change matters relating to Energy 15. FEED IN TARIFF MECHANISM. Source of Fund for FiT. Source of Funding 2011 - additional tariffs collection from electricity bills Every RM100/Month - RM1 for RE. Additional 1% (proposed in 2013). 1% The size of RE fund will determine the 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 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).

9 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 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: 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.

10 H1 2014 10 5 25 15 45 5 20 125. Source: 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, , 5%. Solar PV. (Non-Ind), Biomass, , 40% , 26%. Small Hydro, , 26%. Solar PV. (Ind), , 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.