SOLAR PV: POLICY, MARKET &

INDUSTRY IN MALAYSIA

7th April 2018

Presented by Gladys Mak (gladys@seda.gov.my)

Director, Feed-in Tariff Division

Sustainable Energy Development Authority (SEDA) Malaysia

50th Task 1 Meeting, Pullman Hotel, Kuching, MALAYSIA

POLICIES DRIVING THE

SOLAR PV MARKET IN

MALAYSIA

50th Task 1 Meeting, Pullman Hotel, Kuching, MALAYSIA

Policies in Support of the PV Market in Malaysia

• Capital subsidy under UNDP-GEF Malaysia Building

Integrated PV (MBIPV) Project (2006-2010) (quota 1

MW);

• Feed-in Tariff (FiT) with quota offered on 1st December

2011 and the last quota offered for Solar PV was in 2017,

except for the MySuria* programme;

• Net Metering (NEM) launched in November 2016 with a

proposed cumulative quota of 500 MW upto 2020;

• Large Scale Solar (LSS) introduced in 2016 with a

proposed quota of 1,200 MW upto 2020.

*Note: MySuria is a special programme by the GoM for a specialised group of

citizens (B40) to be implemented in 2018

RE Connected to the Grid (as of 31/12/17)

under the Feed-in Tariff

No. RE Resource Accepted (MW) Approved (MW) Connected to the

Grid (MW)

1 Biogas 268.93 220.86 55.83

2 Biomass 592.65 396.19 87.90

3 Small Hydropower 640.44 538.48 30.30

4 Geothermal 37.00 37.00 -

5 Solar Photovoltaic 523.10 440.19 354.03

• Individual 108.05 98.43 75.89

• Community 18.97 11.60 5.28

• Non-Individual (≤ 500 kW) 128.03 101.63 67.83

• Non-Individual (>500 kW) 268.05 228.53 205.03

Total 2,071.69 1,632.72 528.06

NEM – Net Metering

Total Cum. Capacity in 2017: 5.25 MW

Large Scale Solar (LSS)

Large Scale Solar (LSS) Capacities AwardedLarge Scale Solar (LSS) Capacities AwardedBidding Cycle 1

18 Projects (MWAC) Bidding Cycle 2

40 Projects (MWAC)Direct Award

8 Projects (MWAC)Total = 66 Projects

(MWAC)

Johor 29 39,99 0 68,99

Kedah 69 125,89 110 304,89

Kelantan 0 39,99 0 39,99

Melaka 0 6,8 50 56,8

Negeri Sembilan 61 60 0 121

Pahang 50 59,916 0 109,916

Perak 79 69,87 0 148,87

Perlis 3,996 30 0 33,996

Pulau Pinang 20 1 0 21

Selangor 50 37,942 0 87,942

Terengganu 22 34,99 50 106,99

WP Kuala Lumpur 0 0 0 0

WP Putrajaya 0 0 10 10

WP Labuan 5 11 0 16

Sabah 11,9 39,6 50 101,5

Peninsula 383,996 506,388 220 1 110,384

Sabah & Labuan 16.9 50.6 50 117,5

TOTAL 400.896 556.988 270 1 227,884

Source: Suruhanjaya Tenaga

Completed LSS Projects in 2017

Source: Photo courtesy of Suruhanjaya Tenaga

Total Capacity Commissioned in 2017: 14.43 MW (12 MWAC)

The MySuria Programme

**The Honorouble PM’s Announcementin the 2017 Budget Speech for a specialSolar PV programme called “MySuria” for qualified and selected B40 Citizens** all over Malaysia

** 1 620 houses with 3 kW installed capacity under the Feed-in Tariff mechanism in 2017-18

SOLA PV INDUSTRY IN MALAYSIA:

UPDATES

50th Task 1 Meeting, Pullman Hotel, Kuching, MALAYSIA

Solar PV Industry (as of 2017)

Manufacturers (Silicon feedstock /ingots)

Process & technology

Nameplate Capacity

Elpion Si Metal Si 33,4 tonnes

Tokuyama 1 Poly-Si 20 tonnes

COMTEC 2 mc-Si ingots 124 MW[1]Sold to South Korea’s OCI Co Ltd in 2017 [2] In early 2017, LONGI agreed to buy over COMTEC Malaysia.

• In 2017, a steady growth was reported for the solar PV industry in Malaysia; captured in MIDA’s “Malaysia Investment Performance Report 2017”

• Over 90 % of the PV products were exported to Europe, US and Asia.

In 2016:

Manufacturers for SiliconProcess &

technologyNameplate Capacity

OCIM Sdn Bhd Poly-Si 9,8 kilo ton

In 2017:

Source: www.pv-tech.org

In 2018, the strategy for polysilicon by OCI:

Ingot/Wafer/Cell Technology

Production capacity (MW/yr)

20172018

(estimated)

1. Longi Ingot 1 000 1 000

Wafer (p-typemono)

1 000 1 000

TOTAL 2 000 2 000

1. Longi Cell (mono-Si) 600 650

2. Sunpower1 N-type mono-Si

826,4 764,4

3. Hanwa Q-Cells P-type mc-Si 1 600 1 800

4. TS Solartech Mono & mc-Si 240 240

5. Jinko Solar mc-Si 1 500 1 500

6. JA Solar mc-Si 1 000 1 000

TOTAL 5 766,4 5 954,4

[1] SunPower took over its joint venture (JV)solar cell manufacturing operations inMalaysia from Taiwan-based partner AUO, asubsidiary of AU Optronics Corporation at acost of US$170 million in 2016

Module manufacturer Technology

Module Production Capacity (MW/yr)

20172018

(estimated)

1. Hanwha Q-Cells P-type mc-Si 1 600 1 8002. Longi 600 9003. Jinko Solar mc-Si 1 300 13004. Flextronics c-Si 513 4735. Panasonic HiT mono-Si 469 3706. MSR Mono & mc-Si 100 1207. PV HiTech mc-Si - 38. Promelight Mono & mc-Si 100 1009. Solartif mc-Si 0,7 1

Sub-Total 4 682,7 5 067

Thin film manufacturers 20172018

(estimated)1. First Solar CdTe 2071 2344Grand Total 6 753,7 7 411

Report downloadable here: http://www.mida.gov.my/home/malaysia:-investment-performance/posts/

Key Findings on the Contribution of the Solar Industry to the Malaysian Economy

THE FEED-IN TARIFF

Impact and Outcomes

0

100

200

300

400

500

600

20102011

20122013

20142015

20162017

Cumulative Growth of Grid-Connected RE

SolarPhotovoltaic

Biomass

Biogas

Small Hydro

Geothermal

Capacity (MW)

Year

BASELINE: SREP & MBIPV

Impact 1: Increase in Grid Connected RE

58.798.44

64.45

331.67

147.93

420.94

528.26

243.36

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

31,410.00

27,550.00

23,190.0022,410.00

20,440.0019,120.00

11,000.00

9,000.00

7,500.008,500.00

7,790.008,038.00

0 0 0 0 0 0 0 0 0

80006830 6674

SOLAR INDIVIDUAL

SOLAR NON-INDIVIDUAL

Cost (MYR)/kW

Year

BASELINE: MBIPV PROJECT

Impact 2: Reduction in Costs of PV

Systems

2 2

24.93

73.3

160.03

224.74

284.35

0

50

100

150

200

250

300

2010 2011 2012 2013 2014 2015 2016

SolarPhotovoltaic

19,120.00

11,000.00

9,000.00

7,500.008,500.00

7,790.00 8,038.00

Capacity (MW)

Year

Cost (MYR)/ kW

GROWTH OF INSTALLED CAPACITIES VS SYSTEM COST 2010 - 2016

Reduction in Costs of PV Systems

with Increase in Installed Capacities

Impact 3: Increase in Renewable

Energy Jobs

SolarPhotovoltaic

Biomass

Biogas

Small Hydro

Geothermal

2000 40000 6000 27,000

27,908

6,840

4,127

4,187

555

Total Employment

43,617

*Based on figures submitted to IRENA and includes the service sectors and manufacturing

Evolution of Renewable Energy

Employment 2011 - 2017

SolarPhotovoltaic

Biomass

Biogas

Small Hydro

Geothermal

Total Employment*

25,424 Year

No. of Jobs

*Jobs Created Directly from the Generation of RE under the FiT Mechanism

-

5,000

10,000

15,000

20,000

25,000

30,000

2011 2012 2013 2014 2015 2016 2017

- - - - 555 555 555 931 1,726 1,965 3,938

4,487 4,187 4,217 312

513 653

2,492

3,538 4,127 4,144

1,989

4,389 4,005

6,837

7,740 6,840 6,405

1,923

4,224 4,797

5,686

7,941 9,913 10,103

Impact 4: Human Capital Development

Since 2012

GCPV: Grid-connected PhotovoltaicOGPV: Off-grid PhotovoltaicCDP: Continuous Development Program

31

29

3

13

17

GCPV DesignCourse

GCPV for Wiremen& Chargeman

OCPV for Wiremen& Chargeman

CDP for GCPV Design

Solar PV Installation & Maintenance

Course

Training Modules Organized by SEDAIn Renewable Energy

Publications

Total Training Sessions: 93Total Publications: 9

Impact 5: Number of Workforce

Certified Since 2011

157

253 256

469

502531 535

0 0

41

126

210

275 284

0 0 0 5

93

168 168

21 27 27 27 32 39 42

0

100

200

300

400

500

600

MBIPV/2011 2012 2013 2014 2015 2016 2017

GCPV Designer Wireman/Chargeman PV Installer OGPV DesignerNo. of Skilled Workers

Year

Impact 6: Number of Registered Solar

PV Service Providers in Malaysia

No. of Registered Solar PV

Service Providers(RPVSPs)

Year

0

20

40

60

80

100

120

140

MBIPV/2011*2012

*20132014

20152016

2017

30

65

100

136

119

107

126

*Estimated figure

Impact 7: Domestic/International

Recognition of our RPVSPsMalaysian Service Provider DitrolicSolar being awarded a 50MW project in Bangladesh

Recipient of a Sin Chew Award

Recipient of a Frost & Sullivan Excellence Award 2013

Impact 8: Impact of the FiT Bonus for

Local Assembly on the PV Industry

RE developers enjoy a 5 sen/kWh FiT bonus rate on top of their basic FiT rate for using locally produced/assembled modules. This has led to an increase in production capacity among PV manufacturers.

28.49 39.51 50.74454.84

2521.57

4369.93

5482.58

6286.18

0

1000

2000

3000

4000

5000

6000

7000

8000

2014 2015 2016 2017 (estimate)

Production of PV Module

Year

Production Volume

(MW)

Export market Local Market

*Statistics based on seven (7) PV module manufacturers surveyed in 2017

3%97%

28.49 39.51 50.74

454.84

0

50

100

150

200

250

300

350

400

450

500

2014 2015 2016 2017 (estimate)

However, since the local recognitioninitiative began in 2014, there is asteady stream of uptake in the localmarket.

With LSS, more production for localmarket is expected for 2017.

Export market accounts for 97% share PV module sales order

Local Market accounts for only 3% share of PV module sales order

Production of PV Module For Local Market

Year

Production Volume (MW)

Between 2014 and 2017, it is estimated that 97 % of all PV

modules assembled in Malaysia were exported for

the overseas market.

Impact 9: Impact of the FiT Bonus on

the Local Market from the PV Industry

MALAYSIA’S LANDSCAPE TODAY

A Gallery of Pictures

Of RE Plants under the

FiT Mechanism and LSS

Solar PV Installations In Malaysia

32

685kWp, Suria KLCC Sdn Bhd,

Kuala Lumpur

13.0MWp, Cypark Suria Sdn Bhd, Pajam, Negeri Sembilan

646kWp, Robert Bosch (M) Sdn Bhd, Bayan Lepas

470kWp, Maglo Steel Service Centre, Shah Alam

Transformation of Land to Solar Farm

5.3MWp (2013)Selasih Mentari Sdn BhdKuala Kawah, Negeri Sembilan

Solar Farm – Ground Mounted

Fortune 11 Sdn Bhd,

Solar Farm with Single Axis

Tracker 5 MWp

at Sepang, Selangor

Solar Farm – Ground Mounted

Amcorp Power Sdn Bhd,

10.25MWp at Gemas,

Negeri Sembilan

Solar Farm – with BIPV Application

1MWp, TTL Energy Sdn Bhd, Papar, Sabah

Solar Farm (BIPV) – Agriculture (Yam cultivation)

Solar Farm – with BIPV Application

1MWp, Green Leadership, Keningau, Sabah

Solar Farm (BIPV) – Aquaculture : Fish Cultivation

Solar Farm– with BIPV Application

425kWp – Solar Management Sdn Bhd

Solar Farm (BIPV) – Goat Farm

Solar PV - Retrofit

646kWp, Bayan Lepas, Pulau Pinang

Solar PV - Retrofit

180kWp, Lokkawi, Sabah

Solar PV in Government Buildings

Ministry Of Energy, Green Technology & Water

Malaysia Greentech Corporation

Ministry Of Agriculture

Energy Commision Headquarters

Solar PV – Residential (3 – 12kWp)

Solar PV – Residential (3 – 12kWp)

Solar PV – Community Quota

Solar PV – Community Quota

Community Rehabilitation Centre, Ranau (24kWp)

Some Photos Showing On-going LSS

Projects

Source: Photo courtesy of Suruhanjaya Tenaga

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.

Phone : +603-8870 5800Email: F1tteam@seda.gov.myWeb: www.seda.gov.my

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

THANK YOU

Scheme CategoryApproved Commercial Operation

No. of Applications

Capacity (MW)

No. of Applications

Capacity (MW)

FiT Sub-total 11.803 438,76 8.234 341

Individual 10.688 98,38 7.516 69,52Community 428 10,29 235 4,85Non-Individual 687 330,09 483 266,62

NEM Sub-total 101 3,31 101 3,31Residential 72 0,42 72 0,42Commercial 22 1,12 22 1,12Industrial 7 1,77 7 1,77

LSS Sub-total 19 450,90Up to 5 MW 5 21,40Up to 30 MW 7 120,5Up to 50 MW 7 309

Total 11.923 892,97 8.335 344,31

Grid-Connected Solar PV Market Status (Aug 2017)

Large Scale Solar Bid Price (Aug 2017)

Source: http://st.gov.my

Category

Peninsular Malaysia Sabah

Total Submissio

ns

No of Submissions

/MW

Lowest Bid Price RM/kWh

Highest Bid Price

RM/kWh

No of Submission

s /MW

Lowest Bid

Price RM/ kWh

Highest Bid Price

RM/

kWh

P1 (1-5.99 MWac)

25 (72,3MW) 0,375 0,4719

(78,8MW)0,371 0,53 44

P2 (6-9.99 MWac)

18(171,9MW)

0,37 0,4612

(111MW)0,39 0,49 30

P3 (10-30 MWac)

42 (1.198MW)

0,3398 0,5 na na na 42

Total85

(1442,2MW)31

(189,8MW)116

(1632MW)

Available Quota: 360MWac (x 4) in Peninsular Malaysia and 100MWac (x 2) in Sabah (commercial operational by 2019-2020);

Exchange rate: US$1 = RM4,21