Malaysia’s Choice to Catalyst Renewable Energy …...Renewable Energy Development in Malaysia 8 8TH Malaysia Plan (2001 - 2005) •RE introduced as the 5th Fuel •Implied 5% RE

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Leong CF

ICT Director, e-FiT Online System Sustainable Energy Development Authority Malaysia

Ministry of Energy, Green Technology & Water Copyright © SEDA Malaysia, 2012

Feed-in Tariff Mechanism : Malaysia’s Choice to Catalyst Renewable Energy Growth & Policy Updates on Solar PV

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Copyright © SEDA Malaysia 2012 2

Disclaimer

Background

Malaysian National RE Policy & Action Plan

Regulatory Framework

The Malaysian Feed-in Tariff Mechanism

The Malaysia e-FiT Online System

Feed-in Tariff Implementation Status

2016 Solar PV Degression & Quota Allocation

More Solar PV projects

PV Industry

3 Copyright © SEDA Malaysia, 2012

Presentation Outline

Background


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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

Technical Potential of Solar PV

Copyright © SEDA Malaysia, 2012

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

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Definition of Renewable Energy

Energy Policies in Malaysia

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1975 • National Petroleum Policy

1979 • National Energy Policy

1980 • National Depletion Policy

1981 • 4th Fuel Diversification Policy

2001 • 5th Fuel Policy

2011 • Renewable Energy Act

Copyright © SEDA Malaysia 2012

Renewable Energy Development in

Malaysia

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8TH Malaysia Plan (2001 -

2005)

• RE introduced as the 5th Fuel

• Implied 5% RE in energy mix

9th Malaysia Plan

(2006 – 2010)

• Targeted RE : 300 MW – Peninsular Malaysia; 50 MW - Sabah

• Connected to the utility grid: 61.2MW (17% from 9th MP target through Small Renewable Energy Programme (SREP)

• Cabinet approved National RE Policy & Action Plan (October 2010)

10th Malaysia Plan (2011-

2015)

• Enactment of RE Act 2011 & SEDA Act 2011 (27 & 28 April 2011)

• Establishment of SEDA, implemented Feed-in Tariff on 1st Dec 2011

• 2015: Energy mix 43% coal, 40% gas, 14% large hydro, 2% RE, 1% oil

11th Malaysia Plan (2016-2020)

• Target energy mix of 53% coal, 29% gas, 15% large hydro, 3% RE.

• Target RE (FiT) capacity of 2,080 MW

• Introduce Net Energy Metering (NEM)

Off-grid PV market focuses on rural electrification especially in Sabah and Sarawak

The on-grid PV market was driven by the Malaysia Building Integrated PV (MBIPV) Project (2006 - 2010) which provided capital subsidy for 2MW PV systems (household + commercial)

As of end of 2011, off-grid PV dominates the PV market in Malaysia

• Off-grid PV – 11MW

• On-grid PV – 2.5MW

Since then, the Ministry realized in order for solar PV market to grow, there is a need for an integrative renewable energy framework + action plan

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Status of Solar PV in Malaysia


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Source: 11th Malaysia Plan (2015)

Population (2015) : 31m

GDP per capita (2014) : US$10,566

Area : 329,847 km²

Installed electricity generation capacity (2013):

29,748MW (81% in Peninsular M’sia, 11.6% in

Sarawak, 7.6% in Sabah)

Malaysia: Electricity Generation Mix

Malaysian National RE Policy & Action Plan


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.

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National Renewable Energy Policy & Action Plan

Approved by Cabinet on 2nd April 2010

Copyright © SEDA Malaysia 2012

National RE

Policy

Strategic Thrust 1: Introduce Legal and Regulatory

Framework

Strategic Thrust 3: Intensify Human

Capital Development

Strategic Thrust 2: Provide Conducive

Business Environment for

RE

Strategic Thrust 4: Enhance RE

Research and Development

Strategic Thrust 5: Create Public

Awareness & RE Policy Advocacy

Programmes

Copyright © SEDA Malaysia, 2012 13 13

Strategic Thrusts of the National RE Policy

According to

National RE Policy

set in 2009, PV

only supposed to

get 65 MW by

2015, and about

200 MW by 2020

RE Act gazetted in

June 2011

FiT introduced in

Dec 2011

Increased to 1.6

% on Jan 2014

REPAP Targets

Year Cumulative RE Capacity

RE Power Mix (vs Peak Demand)

2015 985 MW 5.5%-6%

2020 2,080 MW 11%

2030 4,000 MW 17%

Regulatory Framework


SEDA Malaysia established on 1st Sept. 2011

under the SEDA Act 2011

implement, manage, monitor

& review the Feed-In Tariff system

advise the Minister & Government on all matters relating

to sustainable energy

promote & implement

national policy objectives for RE

implement sustainable energy laws including the

RE 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


SEDA Malaysia

Renewable Energy Act 2011

RE Act: an Act to provide for the establishment & 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

Passed in Parliament: 27th April 2011

Enforced : 1 December 2011

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Renewable Energy Act 2011

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• A mechanism that allows electricity that is produced from indigenous RE resources to be sold to power utilities at a fixed premium price and for specific duration.

• Provides a conducive and secured investment environment which will make financial institutions to be comfortable in providing loan with longer period (>15 years).

– Provides fixed revenue stream for installed system

– Only pays for electricity produced: promotes system owner to install good quality and maintain the system

– With suitable degression rate, manufacturers and installers are promoted to reduce prices while enhancing quality

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Renewable Energy

electricity generated or produced from renewable resources

Renewable Energy

Installation

Renewable Resources

recurring and non-depleting indigenous resources or

technology as set out in the first column of the Schedule

of the RE Bill

Feed-in Approval

Holder

Distribution Licensee

holder of a license to distribute issued by the Commission under section 9 of the Electricity Supply Act 1990

Authority

Sustainable Energy Development

Authority of Malaysia established under

the Sustainable Energy Development

Authority Act 2011 [Act 726]

a person who holds a feed-in approval

installation which generates renewable energy and

includes any technical facility of that installation which

converts mechanical, chemical, thermal or

electromagnetic energy directly into electricity;

RE Act: Key Interpretations

The Feed-in Tariff Mechanism : Malaysia’s Choice to Catalyst RE Growth


Feed-in Tariff Mechanism

Electricity produced from indigenous RE resources to be sold to power utilities at a fixed premium price and for specific

duration

Provides fixed revenue stream for installed

system

Pay for electricity produced: promotes

system owner to install good quality and

maintain the system

With suitable degression rate,

manufacturers and installers are promoted to reduce prices while

enhancing quality


RE Resources eligible for FiT

Biogas • including

landfill gas &

sewage

Biomass • including

solid waste

Small hydropo

wer Solar PV Geother

mal

REPPA for 16 years REPPA for 21 years


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Individuals

• ≥ 21 years

• Malaysians

• Foreign individuals:

• limited to Solar PV

• ≤ 72kWp

Companies

• All legally registered companies and businesses

• Direct ownership

• Shareholding limitations:

• Foreign companies: ≤ 49%

• Distribution Licensee: ≤ 49% within its distribution area

Other entities

• community

• body corporate

• society

• co-operative society

• firm

• local authority

Feed-in Tariff Rules 2011


Power System Study (PSS)

For RE Installation > 425kW (grid-connected)

• PSS is required to asses the potential impact of the distributed generation on the planning and operation of the Distribution Licensee’s transmission system

For RE installation > 12kW up to 425kW

• Connection confirmation check (CCC) is required

Power system study is being conducted by the Distribution Licensee at a fee

Copyright © SEDA Malaysia, 2012 24

RE Power Purchase Agreement

Type of renewable energy power purchase agreement (REPPA) applicable to each Feed-in Approval holder would depend on:

• the renewable resource utilised by;

• the proposed installed capacity of the renewable energy installation to be installed.

Renewable energy power purchase agreements and Feed-in Approvals can be transferred to new house owners with prior consent from SEDA Malaysia.


Distribution Licensee’ obligation

Distribution Licensees are legally bound to not only purchase renewable energy but also prioritise such purchases over electricity generated using non-renewable resources.

If failure, a penalty will be levied on the distribution licensee

Specific time-frames set for all parties involved with established client charters.

Contractors/service providers and feed-in approval holders to set realistic target dates for the feed-in tariff commencement date


FiAH’s Commitment

Under RE Power Purchase Agreement, Feed-in Approval Holders (FiAHs) must provide 70% of their declared energy yield based on an average annual output

For renewable energy installation with net export capacity > 10MW, liquidated damage will be imposed by distribution licensee if the declared annual energy output falls below 70%


The Malaysian

Feed-in Tariff

Online System

(e-FiT System)


SEDA’s Official Portal (www.seda.gov.my)


e-FiT Online System

Transparent

Any Time, Any

Where

Green (Online)

Unbiased, Fair

Auto-comput

e

Real Time

Features of e-FiT Online System


Online Quota with Real-time

Quota Availability

Real time Quota Information


Category of Solar PV

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Category of Solar PV application

• Individual (up to 12kW)

• Community (up to 48kW)

• Non-Individual (up to 425kW)

• Non-Individual (> 425kW up to 1MW)

Limit of 30MW Solar PV

accumulative installed capacity

per RE Developer/Non-

Individual Applicant

Limit of 5MW Solar PV

accumulative installed capacity

for each shareholder of the

RE Developer; direct or indirect

FiT Application Detail

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RE Project Information

Contractor / Service

Provider

Technical Detail

Financial Information

Supporting Documents

Project Workplan

Statutory Declaration


System Allocation of Quota

If No Quota Available,

Stop

If Quota Available,

System Assign Capacity

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System Pre-Allocates Capacity

Compute RE Fund

Generate Invoice

Sign & Upload Statutory Declaration within 3 days

Pay Application Fee within 7 days, if any

Deliver Statutory Declaration to SEDA office within 7 days

Verify Application & Query Applicant

Refuse or Grant Feed-in Approval

FiT Verification Process

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Generate FiA Certificate

Sample FiAH cert.pdf

FiT Realization Processes

User Registration

Feed-in Tariff Application

Feed-in Approval

REPPA signing with DL

Register REPPA with SEDA

ST Provisional License

Financing & Procurement

Construction / Installation

ST Permanent Generating

License

Testing & Commissioning

FiTCD – SEDA’s verify

Actual CAPEX & OPEX

FiTCD – SEDA’s confirmation

FiT Commence Distribution Licensee Pay

Monitor Energy

Production

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FiT Implementation & Outcome


Cumulative Approved FiT Applications (31 October 2015)

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No. RE Sources No. of

Application Capacity

(MW) Percentage Total

Capacity

1 Biogas 90 158.18 13.88%

2 Biomass 37 348.79 30.60%

3 Small Hydro 36 279.64 24.53%

4 Geothermal 1 30.00 2.63%

5 Solar PV 7,212 323.33 28.36%

• Solar PV [Individual] 6,544 60.60 5.32%

• Solar PV [Community] 220 4.78 0.42%

• Solar PV [Non-Individual] (<425 kW)

338 61.00 5.35%

• Solar PV [Non-Individual] (>425 kW – 1MW)

110 196.94 17.28%

Total 7,376 1,139.93 100.00%

Cumulative Applications Achieved Commercial Operations (31 October 2015)

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No. RE Sources No. of

Application Capacity

(MW) Percentage Total

Capacity

1 Biogas 9 17.23 5.29%

2 Biomass 7 74.9 23.02%

3 Small Hydro 5 18.3 5.62% 4 Geothermal 0 - - 5 Solar PV 4,802 214.98 66.06%

• Solar PV [Individual] 4,472 43.42 13.34%

• Solar PV [Community] 54 0.87 0.27%

• Solar PV [Non-Individual] (<425 kW)

209 32.34 9.94%

• Solar PV [Non-Individual] (>425 kW – 1MW)

67 138.35 42.52%

Total 4823 325.41 100.00%

2016 Solar PV Degression & Quota Allocation


PV FiT (Basic) & 2016 Degression Rates

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Renewable energy installation having

an installed capacity of Basic rate 2015

(RM / kWh)

Degression Rate

2016

1. up to and including 4 kilowatts 0.9166 10%

2. above 4 kilowatts, and up to and

including 12 kilowatts 0.8942 10%






including 1 megawatts 0.6977 15%

6. above 1 megawatts , and up to and

including 10 megawatts 0.5472 15%

7. above 10 megawatts , and up to

and including 30 megawatts 0.4896 15%

PV FiT (Bonus) & 2016 Degression Rates

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Renewable energy installation having any one

or more of the following criteria in addition to

basic rate

Bonus rate

2015 (RM / kWh)

Degression

Rate

2016

1. use as installation in building or building

structures +RM 0.1722 10%

2. use as building materials +RM 0.1656 20%

3. use as locally manufactured or assembled

solar photovoltaic module +RM 0.0500 0%

4. use of locally manufactured or assembled

solar inverters +RM 0.0500 0%

More Solar PV projects


off-Grid Hydrid Solar PV

In the State of Sabah

- mainly on islands

In the State of Sarawak

- In the interiors

• > 5.8 MWp

• > 2.2 MWp


11th Malaysia Plan (11MP]

Malaysia targets to reduce the intensity of greenhouse gas emissions (GHGs) to 40% of GDP in 2020 through: • RM45 million for the implementation of an

Electricity Mobility Action Plan including energy audit process;

• Sustainable Energy Development Authority (SEDA) will offer a quota of 100MW per year under the Net Energy Metering Scheme to encourage the use of solar photovoltaics; and

• Extend the implementation period of the Green Technology Financing Scheme until 31 December 2017 with a fund of RM1.2 billion.

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Increasing the share of RE through PV

On 18 August 2015, the Planning and Implementation Committee for Electricity Supply and Tariff (JPPPET) approved 2 new mechanisms for RE:

Net Energy Metering (NEM) – announced by the Hon. PM on 23 Oct 2015 in Malaysia’s 2016 Budget Speech

Utility consumers are allowed to install PV systems on their roof for self-consumption, with the balance being exported to the Grid, and net-off from their monthly bills at displaced cost

Total quota of 500 MW till 2020 or 100 MW a year starting from 2016

After 500 MW capacity is reached, new entrants might have to pay a monthly fee to remain connected to the Grid

Small non-PV systems may also be considered for NEM (e.g. micro hydro, biogas)

Utility scale PV

PV plants with capacity ≤ 50 MW selected through open bidding process and connected to either the Distribution or the Transmission network

• Total capacity of 1000 MW by 2020 or 250 MW a year starting from 2017

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ASEAN Targets : New definitions & RE Targets

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AMEM (Asean Ministers of Energy Meeting) in 2014 made two important decisions

• Large hydro and off-grid hybrid RE systems to be classified as RE

• Target RE capacity increased to 30 % of installed capacity by 2020 from old target of 15 % of installed capacity by 2015

• For Malaysia, this has two important implications

• RE installed capacity has immediately shot up from < 300 MW to almost 4000 MW, by including Temengor, Bakun, and all the other existing large hydros and off-grid systems

• RE target for 2020 = 30 % of 30 GW = 9000 MW

• Expected RE installed capacity by 2020

• Existing large hydro & off-grid in 2015: 3700 MW

• FiT by 2020: approximately 1100 MW

• Expected new large hydro and off-grid RE: 700 MW

• Total: 5500 MW

• Shortfall: 3500 MW

PV Industry


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Prospecting for RE Industry Partner

*** EPC: needs to

have local office (or

work with local

partner) ***

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PV Manufacturing Statistics (2014)

No. Company Name Capacity Employment

Metallurgical Grade Silicon / Polysilicon

1 Elpion Silicon 33,4 kilo tonne 160

2 Tokuyama 20 kilo tonne 680

Total 53,4 kilo tonne 840

Wafer & Solar Cells

1 AUO-SunPower 700 MW 2 145

2 MEMC 1 000 MW 676

3 Panasonic Energy 300 MW 969

4 Hanwha Q-Cells 1 000 MW 860

5 TS Solartech 400 MW 123

Total 3 400 MW 4 773

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PV Manufacturing Statistics (2014).. cont

PV Modules Capacity (MW) Employment

1 First Solar 1 690* 3 700

2 Flextronics 577 800

3 Panasonic Energy 300 1 207

4 Malaysian Solar

Resource

200 120

5 SolarTIF 5 40

6 PV Hi-Tech Solar 5 15

Total 2 777 5 882

* Target 2 000 MW in 2015

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PV Manufacturing Statistics (in the 2015 pipeline)

No. Company Name Capacity

(MW) Employment

Wafer/Solar Cells

1 Comtec Solar International (W) 1 000 139

2 Tetrasun (First Solar) (SC) 100 135

3 Jinko Solar (SC) 500 *

4 JA Solar (SC) 400 700

Total 2 000 974

PV Modules

1 Jinko Solar 450 1 200*

2 Endau XT 75 40

Total 525 1 240

Photographs of Solar PV Installations


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170 kWp, on shopping complex Kuala Lumpur

13.0 MWp, over a Landfill Negeri Sembilan

469.3 kWp, on a Steel Service Centre rooftop, Shah Alam

http://www.google.com.my/url?sa=i&rct=j&q=cypark&source=images&cd=&cad=rja&docid=-lIoyWwxKL6XFM&tbnid=h3oGmmN8X6q8NM:&ved=0CAUQjRw&url=http://thestar.com.my/lifestyle/story.asp?file=/2012/8/14/lifefocus/10800430&sec=lifefocus&ei=Dq_SUbGXOoWKrgfRxoGYBQ&bvm=bv.48705608,d.bmk&psig=AFQjCNEcj8pMZjf2QOXS2VX5YbB_UmzHvA&ust=1372848263026056

10.25 MWp Solar Farm at Gemas, Negeri Sembilan

Click to edit Master title style

5.0 MWp

Solar Farm with

Single Axis Tracker

near KL Internation

Airport

BIPV Homes - Examples

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BIPV Homes – Examples (cont’d)

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BIPV car porch

BIPV extended car porch (3 kW)

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Thank you

SEDA Malaysia, Galeria PjH, Level 9 Jalan P4W, Persiaran Perdana, Presint 4, 62100 Putrajaya, Malaysia.

Phone : +603-8870 5800 Email: [email protected] Web: www.seda.gov.my

mailto:[email protected]

http://www.seda.gov.my/