Kumpulan Melaka to build second Solar PV farm this year

We have nothing but admiration for Melaka's determination and quest for more energy generated from renewable sources. Latest in its list of green technology initiative is the proposed RM20 mil second solar farm.

Last year, Kumpulan Melaka Berhad opened the country's first state-owned solar farm. The 5 MW solar photovoltaic farm involved an investment of about RM46 million.

Launching of Melaka's first solar PV farm in 2012 by then Chief Minister, Datuk Seri Mohd Ali Rustam. NST pic.

Note:
The solar farm was created in three phases: The first (1.3MW) was completed in April 2013, second phase (1.22MW) in May 2013 and the final phase of 2.48MW was completed in August 2013.




Second solar farm to cost RM20 million

Kumpulan Melaka Bhd is investing approximately RM20 million to build and operate its second solar farm in Melaka this year.

Technical Manager KhairulEzuan Harun said the new solar farm is projected to have two megawatts (MWp) of solar photovoltaic (PV) sprawled on 2.8 hectares.

The solar valley would apply solar energy as the primary alternative activities for all sectors which would encompass land development, research, innovation and commercialisation, he said.

"However, the solar farm project is also subject to Sustainable Energy Development Authority Malaysia (SEDA) quota as they need to get more funds," he told Bernama.

SEDA will set a quota on the amount of solar power systems that can be installed in every six months. KhairulEzuan said SEDA has yet to announce when the new quota will be released but once the quota is unveiled, the group will proceed with the project.

All power generated by the solar farm will be sold to power giant Tenaga Nasional Bhd, and the electricity will be channelled directly into the National Power Grid.

Late last year, the Melaka state government launched the first state-owned 5MWp solar PV farm in the country, which cost RM46 million. The solar farm, built on a 7.2ha site at the Rembia Industrial Park is one of the five key projects realising Melaka's ambition to become a green technology city-state by 2020.

The park was created in three phases. The first phase, to produce 1.3MW electricity, was completed in April last year, followed by 1.22MW electricity under the second phase in May last year and the final phase of 2.48MW in August last year.

The first solar farm in Melaka, which is expected to create 45,000 jobs, is poised to contribute a total of RM118 million of gross national income for 21 years, he added. - Sourced from: Bernama, January 30, 2014.


TheGreenMechanics' two cents:

The date for the release and volume of the new renewable energy quota for 2014 under the FIT programme will be announced by SEDA next month, during the International Sustainable Energy Summit.

Big RE players such as Kumpulan Melaka, Cypark, etc., would be eyeing for big chunk of the pie but let's hope everyone has equal chance of getting the cut. The non-individual quota is the one that would be snapped up as soon as it is announced. 

There should be mechanism in place to enable more organisations to take part in the green technology initiative. Attempt by some to win big quota and then distributing them to others in umbrella concept must be curtailed.

Useful information from the recent SEDA Malaysia Open Day

The SEDA Open Day was organised on October 20, 2013 in Kuala Lumpur and although I am not one of the participants, it appeared to be a great session for licence holders and enthusiasts alike.

I posted an article about the Open Day a couple of weeks ago and felt obliged to post this one here in appreciation to a comment by one of our readers. The reader provided very good tips and information. Among others, they are:

a) What happen after the 21-year agreement between FiAH and TNB?

After the expiry of the 21-year  Renewable Energy Power Purchasing Agreement (REPPA) between FiAH and TNB, a Net-Metering scheme would probably be used. In Net-metering, energy generated from the solar panel can be used by the home owner and any excess electricity not used will be exported to TNB's grid and the amount will be deducted from the owner's energy consumption bill.

b) Issue pertaining to additional bonus rate in the FiT

Additional bonus rate for solar panels used as a building material will be subject to verification by SEDA inspector. Bonus rate can only be given if SEDA is satisfied with the installation.

c) What happen if my solar PV system is not performing, i.e. it is not feeding into TNB's grid?

Although REPPA states that FiAH would feed all electricity generated from the solar PV system, there will be no penalty from TNB in case of non performance. This is applicable only to residential installations, and not non-individual installations.

d) Can I increase the capacity of my solar PV installation?

Existing FiAHs can submit application to SEDA to increase the capacity of their solar systems. Approval by the authority is subject to availability of quota at the time the application is submitted.

e) I saw that there is a projected degression rate in the SEDA website. Will there be changes to the published rates?

Degression rate may change as SEDA sees fit. For 2014 degression rate, SEDA has submitted its proposal to the Ministry of Energy, Green Technology and Water (KETTHA) for approval. A revised rate would be published at its website.

f) Is the income from solar PV installation at home subject to taxation?

Income from solar PV installation at homes are subject to income tax. SEDA informed that the Treasury has rejected its proposal to exempt domestic installations from income tax.

g) There seem to be delays in payment to FiAHs from TNB?

TNB's Dr Ahmad Jaafar assured that TNB will pay licence holders (FiAHs) within 30 days of verified invoice as contained in the REPPA. FiAHs can check TNB e-Services website after mid Nov 2013 to view their Renewable Energy Payment Advice.


Note: SEDA informed that there will be no more quota release for 2013. As such, home owners interested to install grid connected solar PV system at their homes will have to wait for 2014 quota.

Credit to the our commenter, Unknown, for this information.


Abbreviations:
REPPA - Renewable Energy Power Purchase Agreement
FiAH - Feed-in Approval Holder

Sabah not ready for implementation of Feed-In Tariff (FiT) system

In March this year, Business Times reported that "the Sabah government has verbally agreed" to the collection of 1% Renewable Energy (RE) levy on heavy energy users in the state.

Also, it was understood that Energy, Green Technology and Water Ministry was "waiting for the official letter from the Sabah state government" to allow TNB to collect RE levy.

Fast forward to today, we are still waiting for signature of the Chief Minister, Datuk Musa Aman. It is the waiting game that've probably led SESB to make the assumption that Sabah is not ready for implementation of FiT here.

-   -   -   -   -   -   -   -   -  o0o  -   -   -   -   -   -   -   -   -

This is what Bernama news portal reported last month:
September 19,2013 (Bernama)

Sabah is not ready for implementation of the Feed-in Tariff (FiT) system to encourage consumers to use renewable energy (RE) as no firm decision has been made by the state.

The Senior General Manager (Assets Management) Sabah Electricity Sdn Bhd (SESB), Ir Ahmad Fuad Md Kasim said discussions were still ongoing with the state government, to determine the method of implementation as well as payment.

"Discussion are still at a preliminary stage and no firm decision has been reached on its implementation, including the means to develop RE at present," he told reporters at a briefing and dinner with chief editors and bureau chiefs in Sabah, here Wednesday night.

Ahmad Fuad said generally, the potential of RE and its availability in the country - including in Sabah - from sources such as biomass, biogas and solar energy had been identified.

The government has also identified the FiT mechanism to improve mixed capacities for electricity generation from RE. The target for such generation from RE sources is 985MW by 2015 or a contribution of 5.5% of the overall mixed supply.


TheGreenMechanics' two cents:

I think we are ready. But if the leaders think we are not, then it is just sad that there will be no effort towards bringing the FiT system here as the desire is not there in the first place.

Like the Malay saying "Kalau hendak seribu daya, kalau tak hendak seribu dalih", if we want it, we will surely work hard (and put aside some fund from the government coffer) to make it happen.


Ref: Bernama

SEDA Malaysia Open Day with FiAH

For consumers in the Central Region (Klang Valley and its surrounding), this is a good opportunity to get more information on the renewable energy FiT mechanism and how it can benefit them.

SEDA Malaysia is organising an Open Day to provide a platform for the public to learn more about Feed-in Tariff, Renewable Energy and others. The objective is to enhance awareness on the importance of Renewable Energy in Malaysia as well as improving its deliveries to the public through facilitation of discussion and dialogue.

This event is specially organized for Feed-in Approval Holders as a platform for those who participated in the Feed-in Tariff programme to raise any issues related to FiT and others.


Event           : SEDA Malaysia Open Day – Dialogue Session with FiAH (Central Region)
Venue          : Berjaya Times Square Hotel, Kuala Lumpur
Time            : 2.30 p.m. – 5.00 p.m.
Day/Date      : Sunday /20th October 2013


As seats are limited, you are advised to reserve your seat before the dateline given. The sooner you do that, the better.

To register online, go to SEDA Registration Page

Their online registration page mentioned fee of RM10.00 per participant, but this event is free and you need key-in Coupon Code: 1234 during registration to cancel off the payment.

Brunei eyes Feed-in Tariff system for renewable energy

It is most encouraging to note that oil-rich Brunei is also looking at Renewable Energy. The country is expecting to implement the system in the next 18 months to two years.

Earlier this week, Borneo Bulletin reported that Brunei is looking at the possibility of implementing a Feed-in Tariff system for renewable energy, and in particular solar photovoltaic.



How FiT system works: You sell back electricity to the energy producer. Image: bendygo



Feasibility study currently on-going

The possibility of a feed-in tariff system was suggested by the Minister of Energy at the Prime Minister’s Office, while delivering a keynote speech at the opening ceremony of a Workshop on Policies, Feed-in Tariff Frameworks and Best Practices for Grid Connected Solar PV Projects at the Rizqun International Hotel in Bandar Seri Begawan.

The system, which would spur home ownership of solar PV technology,  is essentially an economic policy that allows users of renewable energy sources to sell energy back to their energy provider – a system that rewards the use of renewable energy.

While underlining that this is still a work in progress, the minister noted that FiT implementation would give homeowners a personal stake in the development of renewable energy in the country.

The results of the workshop will contribute towards the process, as delegates will discuss the finalisation of the feed-in tariff, the policy and how to make it as friendly and easy as possible to implement.


10% of energy needs from Renewable Energy

The Energy Department at the Prime Minister’s Office (EDPMO), has targeted for 10 per cent of their energy needs to come from renewable energy by 2035.

A Smart Grid, which is a modernised electrical grid used to improve the efficiency, reliability, economics and sustainability of electricity production and distribution, would be a major infrastructure investment.

It was highlighted that a feed-in tariff system would contribute enormously towards the country’s climate change agenda. People will use less electricity as opposed to the normal way of burning gas, and that there will be more usage of renewable energy.

“If the feed-in tariff has benefits for the country and its people, we will do it.”
- Dr Awang Haji Mohammad Yasmin bin Haji Umar, Minister of Energy at the PM Office

TheGreenMechanics: Great start by Brunei Darussalam. Looking forward to it giving benefit the people and the nation, and the globe as a whole.


Source: Borneo Post

Thailand adding 1,000MW of Solar PV by 2014

In Renewable Energy sector, Thailand is known to be more aggressive than any of its Southeast Asia counterparts. Within the next one and a half years, the kingdom plans to install 1,000 MW of solar photovoltaic - 200 MW for individual rooftops, and 800 MW for community-owned installations.

Table 1: Thailand's Feed-in Tariffs for Solar PV. There is currently 400 MW of PV installed in Thailand.

Table 2: Malaysia's Feed-in Tariffs for Solar PV


Aggressive move by Thailand

Since Thailand launched its aggressive feed-in tariff program in 2006, the country has installed nearly 1,000 MW of renewables and has a portfolio of signed contracts of more than 4,000 MW, nearly half of that for solar PV.

Unlike Malaysia, contracts were for a limited time period of 10 years or less. But that has changed recently - Thailand’s National Energy Policy Commission (NEPC) has approved new feed-in tariffs for both rooftop and ground-mounted solar PV with contract terms of 25 years.

This brings the Thai program into alignment with similar programs in Germany, Great Britain, and Ontario, Canada. According to a release by Thailand’s Energy Research Institute, the new feed-in tariffs for solar PV will be differentiated by size and application. There will be three size tranches for rooftop solar PV, and a separate tranche for community-owned, ground-mounted installations.

NEPC has set aside 200 MW for rooftop solar PV, but it must be installed by the end of the year (2013. 100 MW is set aside for systems less than 10 kW in size, and another 100 MW is set aside for systems from 10 kW to 1 MW. The remaining 800 MW is reserved for community-owned projects and must be installed by year end 2014.


Source: REW

Open bidding for solar power Feed-in Tariff

In Malaysia, the 4 renewable energies covered under the government's feed-in tariff  are biogas, biomass, small hydro, and solar PV.

Of these, Solar PV is the most popular and the current first-come-first-served system utilized by SEDA in granting FiT to consumers has so far received some criticism from political figures because of the perceive transparency issues. "The PV quota is snapped up within minutes of opening" seems to be the complaints. This is especially the case for non-individual quota.

So, the Energy, Green Technology and Wa­­­ter Minister Datuk Seri Dr Maximus Ongkili, has an idea: Those intending to cash in on renewable energy (RE) production using solar power may need to go through an open bidding process in the future if demand continues to outstrip the funds available.


Response on solar PV overwhelming

Response to the solar photovoltaic (PV) segment of the Government’s Feed-in-Tariff (FiT) system – which pays consumers monthly for energy sent back into the national power grid – had been overwhelming since it was launched in 2011.

Under the FiT system, which has an annual fund size of RM300mil and currently only applies to the West Malaysia, participating consumers are paid for feeding energy produced using renewable power sources back into the national grid.

For example, a medium-sized house with a 4kW solar PV system can earn around RM550 a month based on monthly generation of 400kWh (units) of power fed back into TNB grid.

Dr Maximus spoke to reporters at the launch of Alliance Bank’s Home Complete PlusSolar Panel Financing scheme at the Sustainable Energy Development Agency office in Putrajaya.

Solar PV, which cover both individual and non-individual categories, accounts for around 41% of the total power production quota set aside under the FiT:-

• Solar PV (141.58MW)      - 41%
• Small hydro (99.35 MW)  - 28.8%
• Biomass (88.89MW)        - 25.7%
• Biogas (15.53)                 - 4.5%

Solar PV quota a good problem to have?

The minister in charge of energy indicated that this was a good problem to have as the government was keen on increasing the number of households and commercial operations involved in RE production, adding that the quotas would likely be revised upwards if there was a strong enough demand.

That is good but he must also look at the loopholes in awarding solar PV quota, especially with questions raised previously on companies (or companies under the same roof) sweeping most of the quota.

Calculation of the 1% levy for Renewable Energy fund

A TNB customer who sent his inquiry to the utility company shared this on FB and I thought it would be  a good read. The explanation is plain and simple for the masses.

: :        : :        : :        : :        : :        : :       : :

Imposition of 1% levy (clarification by TNB Careline)

Pleased to be informed, in line with the Renewable Energy (RE) Act which was passed in April 2011, the Government will impose 1% as Feed-in-Tariff (FiT) for RE Fund, effective 1st December 2011.

The fund will be utilized for promotion and development of RE projects and initiatives and will be managed by Sustainable Energy Development Authority (SEDA) under the Ministry of Energy, Green Technology and Water.

However, customers who consume 300 units (kWh) of electricity or less each month will not have their tariffs raised to pay to the Renewable Energy Fund. TNB's role only as an executor to implement government initiatives as the fund collecting agent, according to the Act.

For further information regarding FiT / Subsidi Bahan Api Kerajaaan Persekutuan / RE, please visit the authority's website at www.seda.gov.my

According to bill, government charge 1% "levy" (Kumpulan Wang Tenaga Boleh Baharu/ KWTBB) from the total consumption every month as illustrated below:


Example of calculation for KWTBB

KWTBB = 1% × [bill – discount] 

bill - current month bill
discount - the given discount, if any

Thus, for a TNB bill of RM1,026.84 in April 2013, the charges is

KWTBB = RM1,026.84 x 1% = RM 10.27

Total payable = RM1,037.11



Note: At the moment, the 1% levy is only imposed in Peninsula Malaysia. SEDA is still waiting for an official letter from Sabah state government to enable it to collect the charges from consumers there. 

No news about the levy yet in Sarawak.

Quota for 20 MW Solar PV released by SEDA Malaysia snapped up within 1 hour

The quota of of 20 MW solar PV  for non-individuals under 500kW was announced late last month:

Announced                       : Wednesday, 27 March 2013
Solar PV quota                 : 20 MW
Category                           : under 500kW, non-individual
Degression rate                 : 20% for installation exceeding 24kWp

Released                         : 2^nd April 2013, 12.00noon

AND, on the day it was released (2^nd April), SEDA Malaysia said the quota was taken up within the first hour. Meaning, the small 20MW quota is over-subscribed, if you like, and bigger quota should be released soon.

Amazing!

This just show that Malaysia is not far behind in terms of interest and commitment to the cause - going green. SEDA Malaysia made an early analysis and found that more than 99% of the solar PV capacities submitted in the e-FiT online system were larger than 24 kW which had the higher degression rate.

From this figure, SEDA believes that the 20% degression rate recently gazetted within the Schedule of the Renewable Energy Act 2011 for solar PV projects larger than 24 kW is still commercially viable.


Degression rate for solar PV individual reduced to 0%

SEDA Malaysia also announced that it has received a directive from the Minister of Energy, Green Technology and Water that, effective 1st January 2014 until 31st December 2017, the degression rate for Solar PV for individuals will be reduced to 0%.

Currently, the degression rate for solar PV for individuals is set to 8%. This means the FiT rates for solar PV for individuals will remain the same for the duration.

With the reduction of degression rate to 0% for solar PV for individuals the Ministry hopes for greater public participation in the Solar Home Rooftops Programme. The Government anticipates with more engagement in solar PV by home owners will result in a greater willingness from the public to contribute to the renewable energy (RE) fund.


TheGreenMechanics two cents:

To Sabah State government: - can you hurry up with the implementation of electricity bill levy? Or, alternatively pay an equivalent of the contribution otherwise made by SESB consumers so that Malaysians in Sabah can get the same benefits enjoyed by their counterparts in West Malaysia.

I thought the State Budget 2013 is the biggest in Malaysia? Check this out: Supply Expenditure for the year 2013 is the biggest in the State’s budget financial history totalling RM4.088 billion! So, an equivalent of 1% levy on heavy energy users is a pea nut then.


Further reading: SEDA Malaysia press release.

Malacca to build first solar farm, RM46 million

Malacca is well on course to achieve its target to become a Green Technology City State in 2020. Last month the government kicked off the construction of the first state-owned solar farm in the country.  Hats off to the team!

Not to deny the effort of other conglomerates and the private sector, but Malacca has to be given credit for the initiative. It started it's green initiative long before the feed-in tariff structure was drawn out by SEDA. The other notable solar installation is Cypark's Pajam 8MW solar park in Negeri Sembilan.


Malacca solar farm quick facts

Plant capacity     : 5MWp, to be constructed in 3 phases:-

                        Phase 1: 1.3MW to be completed in December 2012
                        Phase 2: 1.22MW to be completed in January 2013
                        Phase 3: 2.48MW to be completed in February 2013

Investment           : RM46 million (US$14.8 mil)
Area                     : 7,248.43ha
Location               : Rembia Industrial Area
Tenure                 : 21 years REPPA with TNB

Estimated energy produced :

              Daily        - 17 MWh
              Monthly   - 514 MWh
              Annually  - 6,162 MWh

Example:
If the FIT rate is RM0.98 per kWh of energy produced, annual revenue based on the above estimated figure would be (6,162,000 x 0.98) = RM6.04 mil. So, yes, it is a viable investment and it create job opportunity for the people. Plus, there will be spin-off business activities, at lease in Malacca.

I am assuming that this production is based on solar irradiation of 3 to 3.5 hours a day, which is quite conservative, but perhaps taking into account rainy days as well. We understand that in Sabah the good sun irradiation period is longer.

Projected profit: RM73 million after 21 years

Chief Minister of Malacca, Datuk Seri Mohd Ali Rustam (second from left), gestures as they look a sample of the solar panel at the launch of the solar farm at Melaka World Solar Valley. Photo: Mohd Khairul Helmy Mohd Din/NST



Malacca to build solar farm at Rembia Industrial Area
(NST, August 4, 2012)

ALOR GAJAH: THE Malacca government will be the first in the country to build and operate its own solar farm, costing RM46 million, in line with its mission to be a green technology city state by 2020.

The 5MWp solar photovoltaic (PV) solar farm will be built on a 7,248.43ha site at the Melaka World Solar Valley in the Rembia Industrial Area.

This will be done in three phases -- the first phase to produce 1.3MW will be completed in December, the second phase (1.22MW) will be ready by January next year and the final phase (2.48MW) in February. The project is being developed by Kumpulan Melaka Berhad (KMB), which is wholly owned by Chief Minister Incorporated.

The proposed solar farm to be build at Melaka Solar World Valley.

Chief Minister Datuk Seri Mohd Ali Rustam said all the power generated by the solar farm would be sold to Tenaga Nasional Berhad and the electricity would be channelled directly into the national power grid (NPG).

"The power harvested from sunlight will be channelled into the NPG in three phases obtained which will be on Dec 15, and Jan 15 and Feb 15 next year."

He also said the plant would be able to supply 17MW a day to the NPG. "In a month we will be able to sell 514MW to TNB and in a year, it will come up to 6,162MW.

"We expect that after servicing the RM41 million loan which we had taken from the Malaysia Debt Ventures Berhad (MDV), a company owned by the Ministry of Finance Incorporated, we would be able to make a profit of RM73 million after 21 years."

Rustam said this after performing the groundbreaking for the plant and witnessing the signing of the agreement to finance the project between KMB and MDV at the Melaka World Solar Valley yesterday.

Present were Energy, Green Technology and Water Deputy Minister Datuk Noriah Kasnon and Sustainable Energy Development Authority chairman Tan Sri Dr Fong Chan Onn, who is also Alor Gajah MP. Mohd Ali said two more solar farms would be developed in Jasin and the Krubong landfill.

Over 750,000 homes in Australia now have rooftop solar

Australia is seeing a steady growth in the solar market.

The latest figures released by Sustainable Energy Association of Australia (SEA) shows that more than 750,000 homes now feature solar photovoltaic panels. This brings total capacity, on home rooftops, to about 1.67 gigawatts(GW).

Small-scale solar PV. File picture: pv-magazine.com

The rate of installation slowed from 2011 after most states wound up their FIT schemes, but current trends shows that 600 MW is set to be added in 2012. In the next 12 months, Australia is forecasted to add another million houses with solar PV installed on their rooftops, with a capacity of over 2.3 GW.


Inspiring Australia

The State of Queensland remains the biggest in terms of installed capacity with 475 MW (see Table 1 below), followed by New South Wales with 435 MW. Queensland was one of the last states to wind back its FIT tariff, but gave installers and households approximately 12 months for a less troublesome transition to the new system.

Table 1: Numbers and installed capacity of solar, as at June 2012.

Figures derived from SEA website

The average system sizes recorded in June 2012 are around 2.84 kW and are expected to grow.

Back home, we have the FIT tariff and incentive by SEDA Malaysia that targets around 2,000 houseowners  in solar power investment this year, and 10,000 in 2013, which could earn them an average of RM500 monthly for 21 consecutive years. Of course this figure is a dwarf compared to Australia's three quarters of a million houses.

Australia's population as at December 2011 is around 22.6 million (ABS) with 1 million houses installed with solar PV this year. In comparison, our total population is around 28.6 million (Dec 2011) with probably less than 2,000 houses with solar PV. The climate and geographical location of Malaysia is better suited for solar power industry compared to a slightly temperate country like Australia, and lesser sun-radiated country like Germany.

We are very much at infancy stage but with the right approach, there is no stopping us from achieving similar ratio as that of Australia's. Very soon, for every 22 houses in Australia, there will be at least 1 with solar PV installed on its rooftop.

Do yo think you can see a solar PV system on a single rooftop in a 200-house housing estate anywhere in Malaysia? Take a walk sometime and observe.


References:
Sustainable Energy Association of Australia (SEA)
Sustainable Energy Development Authority, Malaysia (SEDA)

SEDA targets 2,000 houseowners in Solar Power investment this year

A fortnight ago SEDA told newsmen in Putrajaya that it is targeting 2,000 house owners to invest in solar power through the feed-in tariff incentive. This is the non-industrial portion of the Solar PV quota for renewable energy sources which consist of four, namely Biomass, Small Hydro, Solar PV and Biogas.

Solar panels must be tilted to the correct orientation towards the sun. Photo: ontariosolarfarms.com

What is home Solar Power investment

Solar PV system is installed on your rooftop, you pay the initial investment and sign a contract with the utility (TNB, SESB, etc) for 21 years. Power generated from your rooftop would be sold to the utility at a premium rate. There is a feed-in tariff mechanism that governs this. Application is by online balloting and the process is free from human intervention.

A quick glance at SEDA portal showed that response for the individual FIT application is not very encouraging. This could partly be due to the financial constraint and the ability of the interested individuals to come up with the necessary down payment.

Interesting thing to note is the statement by the Chairman that the 2,000 quota is also open to house owners in Sabah. Previously Sabah quota has been suspended due to non-participation of the Sabahans in the 1% levy on their electricity bills.


Read the full article:
Putrajaya, July 13. 
The Sustainable Energy Development Authority (SEDA) has targeted 2,000 houseowners this year, and 10,000 the next, to invest in solar power which could earn the latter an average of RM500 monthly for 21 consecutive years.


Its chairman, Tan Sri Dr Fong Chan Onn said, each house which had to be installed with solar panels could generate four kilowatts of power for sale to Tenaga Nasional Berhad. The biggest encumberance for mega participation in the renewable energy investment was the financial capital involved in the installation of the
project, he said.

"One kilowatt would incur a cost of RM10,000, so for four kilowatts, RM40,000.

"To encourage owners of terraced house, bungalows and low-cost houses, SEDA is in discussion with some commercial banks to ease the loan process," he said in a media conference here today.

Nevertheless, he said, despite the high investment, homeowners could expect to get back their capital after six years. Dr Fong said the 2,000 quota would be opened next month to houseowners in the peninsula and Sabah.

Rooftop solar PV

The picture below is how it looks like for the US Coast Guard rooftop solar arrays in Puerto Rico. They are among 2.89MW of solar, still to be completed, made possible by innovative financing.

Need one for your home?

Renovated Coast Guard rooftops with solar arrays. Photo: Energystorageblog

We too, have an innovative financing on feed-in tariff, FIT, for solar PV installations on our rooftops that works on the principle of forced-purchase by the utility companies for all energy produced and that will go on for 21 years. Good retirement plan if you like.

Downside is, everyone (big domestic and industrial energy consumer) will be the ones financing this FIT even if you don't necessarily get to install one on your rooftop. Never mind, being the big spender that you are, you'd probably won't need it, so, just give that quota to the needy.


About the Coast Guard solar PV

The $50million project is undertaken by Schneider Electric for installation of 2.89 megawatts (MW) of photovoltaic panels on renovated Coast Guard rooftops over a 13-month period. The company is constructing 300 solar PV systems on the facilities resulting in guaranteed production of more than 4,000,000 kWH-hours per year.

The photovoltaic electricity production, combined with new cool roofs that will reduce the annual cooling load of the buildings by 3.9 billion BTU, will result in an overall reduction of utility-purchased electricity by an estimated 40%.


That's just cool!

Renewable energy solutions in Puerto Rico helps the Coast Guard meet federal mandates, reduces green house gas emissions, stabilises energy costs, and helps create green collar jobs in Puerto Rico. This project will have a significant impact on the industry there as there will be spin off business activities along with the solar jobs.

Cool.

Germany might miss electric car target

About 20% of Germany’s electricity now comes from renewable sources, and the feed-in tariff for renewables has been very successful in getting the public to participate in generating electricity from solar.

However, it has been widely reported that the government intends to curtail financial support for renewables, particular for solar energy, and industry analysts doubt the renewable energy industry could survive without it.

It seems that Germany is not only having issue with sustaining and growing further its renewable energy industry but it is now faced with another obstacle in one of its GHG emissions reduction related initiatives. Official said that, unless more incentives are given, Germany will miss its target of 1 million electric cars on its roads by 2020.


As reported by AFP on Wednesday, June 20

German Transport Minister Peter Ramsauer gets out of an E-drive BMW electric car.

Photo: John Macdougall/AFP

Germany will miss its target of one million electric cars on its roads by 2020 without more incentives, the country's coordinator on electric transport policy warned on Wednesday.

"I've already said that without additional incentives we will reach more of a figure of half a million," Henning Kagermann, who oversees Germany's electric mobility strategy, told reporters.

Germany set a target in 2008 of having one million electric cars on its roads in 2020 and said it wanted to be a pilot market in the field. Under the plan, it has given itself until 2014 to prepare the market, with mass production of electric cars due to kick in from 2017.

But Transport Minister Peter Ramsauer called at the same press conference for "optimistic realism" and spoke of "making Germany the number one (market) for the electric car" rather than re-stating the one-million target.

The head of the powerful Federation of German Industry (VDA), Matthias Wissmann, has said that by 2014, German manufacturers will be able to offer 15 different models of electric vehicles.

But he insisted on the need to improve the vehicles' batteries to provide electric cars with more autonomy outside heavily built-up areas.

The government offers tax incentives to electric car drivers but campaigners say much more must be done to encourage people to switch from petrol or diesel to electric vehicles.

Source: Germany might miss electric car target, officials says

Japan solar creating $9.6 billion market?

With a 'very attractive' solar power tariff, Japan is poised to quickly overtake Germany and Italy to become the world's second-biggest market for solar power as incentives starting July 1 drive sales for equipment makers from Yingli Green Energy Holdings Co. to Kyocera Corp.

Solar electricity rate is about three times the rate of conventional power. According to Bloomberg New Energy Finance forecast, that may spur at least $9.6 billion in new installations with 3.2 GW of capacity.

Image: freeworldmaps.net

While solar industry is suffering incentive cuts across Europe, Japanese Prime Minister Yoshihiko Noda is making effort to cut dependence on atomic energy and as a result solar industry will benefit. Currently nuclear energy provides about 30% of Japan’s power requirement.

The high solar tariff rate is not without opposition though. Business lobbyists questioned the effectiveness of such a scheme whereby the high cost of electricity is shouldered by users.


Japan Power Tariff

Power utilities will pay ¥42 (US 53 cents) per kWh for 20 years to solar power producers, almost twice the rate in Germany, the world’s biggest market by installations. The ¥42 solar rate, targeted for 10-kW or bigger plants, is above the ¥38 price for 15 years the industry earlier expected.

Malaysia's rate is RM1.75 max. (US 55 cents), subject to usage of local products, installation size, and building-integration of installation. This is still higher than Japan and Germany.

In Germany, after the proposed subsidy cuts, it is planning to offer €0.135 to €0.195 (17 to 24.6 U.S. cents) per kWh, depending on size. Italy’s rate is €0.128 to €0.237. Analyst estimates that residential solar systems are being sold in Japan for $6.28/Watt, more than double the $2.70/Watt price in Germany.


Installed capacity

Last year, Japan ranked 6th worldwide by new installation when it added 1.3GW of solar to bring its installed capacity to 5GW. It is expected  nearly triple that amount, or 3.2GW to 4.7GW. Wist this huge investment, Japan will come second only to China and its solar capacity growth will surpass those of Italy and Germany.

1 GW is sufficient to supply about 243,000 homes in Japan.

In 2011, Japan got about 1.6% of its energy from renewables making it the smallest percentage among G-7 countries after Canada. Japan has got a lot of catching up to do, but with such an attractive solar tariff, it will be able to do that in a short span of time.


Green surcharge to consumers

As what is being practiced in other countries, Japanese consumers will help to fund the program by paying surcharges in their monthly electricity bills. The average surcharges is about ¥87 per household per month, lower than the earlier estimate of ¥100.

In Malaysia, only consumers with monthly energy usage of 350kWh and above are being levied with 1% of the total electricity bills, to fund the Feed-in Tariff program.


TheGreenMechanics' two cents:

We once had this 'Look East Policy' which refers to learning lesson from the industry standard of Japan. Let's see if we can benchmark our Renewable Energy Policy with what Japan is implementing. Our FIT model was largely drawn in comparison to Germany's subsidy model, and Germany is currently facing difficulty in sustaining such a highly subsidised renewable energy, particularly solar power.


Copyright 2012 Bloomberg - via Renewable Energy World.

FiT in Sabah has been suspended

This is to recap that the FiT implementation in Sabah has been suspended except for Small Renewable Energy Power (SREP) Programme projects which reached commercial operation date by Dec 31, 2011.

What is FiT

A feed-in tariff (FiT) is a rate of money paid by the government to homeowners or organisations to generate their own electricity through small-scale green energy or renewable energy installations. In Malaysia, renewable resources covered by the FiT includes biogas, biomass, small hydropower, and solar PV.

TNB/SESB to pay grid-connected RE producers. Image: Kolopis Main Intake substation (PMU)

Why the suspension in Sabah?

I read about this in Business Times few days ago whereby SEDA chief executive officer Badriyah Abdul Malek said "It would be justifiable for the Sabah Government to contribute to the RE Fund, following the suspension of FiT implementation there," in a press interview.

I dug for a little bit more and found that earlier in March 2012 The Star reported the same. This means the suspension could have been imposed no longer than 2 months back.

From the few press reports, I can only deduce that the suspension was due to Sabah not contributing to the RE Fund set up by the government when the FiT was implemented in December last year. Sabah government appealed for a delay in RE Fund collection as it would be too taxing on consumers here since electricity tariff has just been increased by about 15% in July 2011.

No contribution, no benefit so it seems.

The eligible SREP I mentioned earlier covers only 5 green power producers as they are already operating commercially, as of December 2011. Total power generated by these RE entities is 36.5MW.

On the same token, the rumoured JV between SEC and SESB to build solar farm mentioned in my article Cypark and TNB signed Renewable Energy Power Purchase Agreement, will not metarialise after all. This is somewhat turning into a sad ending.

We can still participate in the FiT

What we can do is simply contribute to the Renewable Energy (RE) Fund. The heavy energy users in Sabah has not yet been levied for the energy consumed and as it was the State Government who appealed for delay of the RE Fund collection, it is just fair that the same government shoulder the obligation to contribute.

As per the Chief Minister's recent 2012 budget presentation Sabah seem to have a lot of money in its reserve coffer. Use it.

As SEDA CEO mentioned, it is not fair that only industry players (heavy energy consumers) in Peninsula Malaysia are being levied but not consumers in Sabah.

FIRST solar thermal Power Plant in Southeast Asia

As posted in my December 2011 entry: Parabolic mirrors that produce electricity, harnessing of energy is done indirectly by converting concentrated sunlight into heat. This heat will be used by a steam turbine or a heat driving generator to generate electricity.

Hence, the name solar thermal.

TSE1 plant in Thailand. Credit: CSP Today

It is a known fact that Thailand is ahead of all other Southeast Asia nations in terms of renewable energy initiatives. Recently, Solarlite - a German concentrated solar power technology provider - commissioned Southeast Asia's first direct steam generation parabolic trough plant called TSE1, to supply 5 MW of electrical power to Thailand's public power network.

TSE1 is the first of 15 CSP stations planned by Thai Solar Energy and when completed, total generating capacity will be 135 MW. There is a feed-in tariff, FIT, scheme in Thailand for small energy generation system of up to a capacity of 10 MW.

Similar to Malaysia's initiative through SEDA, Thailand's aim is to give opportunity to people in the remote areas to participate in electricity generation, especially from renewable sources.

What makes Solarlite installation in Thailand special is that this is world's first in Direct Steam Generation. Instead of heating a thermal oil, the solar energy heats up the water that flows through the parabolic trough collectors receiver tubes. Therefore, no heat transfer oil is needed and heat exchanger - one of the expensive components in the CSP plants - becomes redundant. This means that the CSP plant is more ecological and safe as it uses only water.

Second plant, TSE2 is currently under construction and all of Thailand’s current Solar Program is targeted to be completed by 2015. New program was recently announced, under which 2GW of solar capacity from both solar thermal and Photovoltaic must be installed by 2020 as part of Thailand’s commitment to sourcing 25% of it total energy requirement from renewable energy sources.

Solarlite's solar thermal parabolic trough plant in Thailand. Image credit: solarthermalmagazine.com

The TSE1 plant does not have energy storage capacity as it is not economical to install storage system for small plants. Meaning, every time clouds shade the plant there would be power outage. Furthermore, Thailand's FIT which has a framework of 10 years and maximum 10MW of plant generating capacity deprive Solarlite the benefit of economic of scale. The current feed-in tariff for energy generated from CSP is 11.5Baht/kwh (about RM1.12/kwh).

Compared with Thailand, FIT scheme in Malaysia is structured to run longer i.e. up to 21-year with more competitive rate, especially Solar PV. This scheme is however limited to only 4 sources of renewable energy, not including CSP. To recall, the four energy sources that enjoy the Malaysian FIT scheme are Solar PV, Biomass, Mini Hydro and Biogas.

Solarlite in an interview with CSP Today stated that if they can make it and be successful in Thailand, they can make it anywhere, and that include Malaysia. They have the advantage of producing components in Southeast Asia (Thailand) and with the right approach with our government, there's no reason why can't CSP be implemented in our country. We can start with the remote areas to power up the rural population.

Why not!


Abbreviations
CSP - concentrated solar power
FIT - feed-in tariff
PV - photovoltaic
SEDA - Sustainable Energy Development Authority (Malaysia)

Testing of Feed-in Tariff Application

Poor Very poor response.

That was my conclusion of the 3-day Gamma Testing of Feed-in Tariff Application on the e-FiT Online System. Only 50 nos feedback received as at the time of this posting, including myself.

My response page to SEDA

Say, 10% of the population (28.3mil in 2010) is aware of the Government Renewable Energy (RE) initiative and incentives. That would be 2.83 million and as we don't expect every 'aware' person to respond we'll take a 1% as poor. A humble one percent is 28,000 but would you actually believe that out of 100 persons being aware of a rewarding initiative only 1 or less person would respond?

If I tell 100 farmers that I have been blessed yesterday with a lot of money and I would reward anyone for planting paddy according to a prescribed method and for achieving certain quantity of rice produced, I am quite sure half of them would at least ask what sort of reward and how much can they expect to get in return.

In the case of Malaysia Feed-in Tariff, the lack of response from the public is a strong indication that the population at large is not aware of such reward program. What we hear on the mainstream media is the government's commitment to reduce the CO2 emission and the policies drafted to achieve this. What we don't hear is that you and me can take part in achieving this and at the same time reaping monetary benefit from our participation.

Energy Commission is quite aggressive in promoting energy efficiency in this country, and SEDA should emulate EC's effort by:

1. Conducting nationwide workshops, seminars and trainings on Renewable Energy initiatives, its objectives and their benefits to the people,
2. Gamma test - redo the gamma test during weekdays, after publicizing it through the mainstream media,
3. Advertisement - consider this as business venture and advertise it periodically. Don't keep things at SEDA office.

I have mentioned nationwide but I'll stress it again that SEDA need and must conduct seminars and promotional activities in Sabah and Sarawak. After all these two are the least served states in Malaysia in terms of electricity supply.

Give them alternatives to generate their own electricity through Renewable Energy.

ONLINE Testing of Feed-in Tariff

Image source: SEDA Malaysia



SEDA Malaysia will release a test version of the e-FiT Online System for Gamma testing on the Feed-in Tariff Application.







The online test will be carried out as follows:

Date: 10:00 am 5th Nov 2011 to 5:00 pm on 7th Nov 2011.
URL: www.seda.gov.my/gamma (to be activated at 9:55 am on 5th Nov 2011)
Send in your feedback by : 8th Nov 2011.

Members of the public are welcome to test and provide their feedback to SEDA Malaysia by Tuesday, 8th November 2011 to fit@seda.gov.my or by filling the feedback online form :

Feedback on the Feed-in Tariff Application via the e-FiT Online System

If Feed-in Tariff (FiT) is new to you, you may want to read about it here:

1) Incentive for Renewable Energy
2) Generate Electricity at home and EARN MONEY
3) FiT - Critical Success Factors

Or, read all about FiT at SEDA Malaysia website here.

Stay tuned!

More carrots for you to Go Green

[News clipping from Daily Express, 8th June 2011]

You read that correct, it's more carrots and less sticks for you to go green.

In case you missed this piece of news, in brief, it talks about the government's plan to enable you to get financing so that you can generate extra income through installation of solar PV at home.


In summary:

Standard houses require average : 3kWp to 4kWp
Cost of solar power per kWp       : RM15,000
Thus, each house need about     : RM45,000 to RM60,000

It did not give further details but from my conversation with a couple of industry players, one can get up to 90% financing, which means down payment of only RM4,500 to RM6,000. Furthermore, the cost per kWp of solar PV is decreasing rapidly in tandem with technological advancement. In fact, according to one system integrator, as of today (June 2011) the cost per kWp is already down to RM14,000.

Implementation may not be that fast as application will only be open to the public in 3Q and possibly implemented in 4Q of this year.

I mentioned 'less stick' earlier on, let me explain. Application to install solar PV at home is on quota and first-come-first-served basis. Let's assume you successfully get the allocated power aggregate for this year's implementation. Terms and Conditions states that you MUST install your system this year as indicated in the agreement. In case you decide not to install, you will not get 'caned', you merely pass the opportunity to someone else.

If you decide to 'pass' this opportunity to someone else, you've missed on the opportunity to generate extra income while sitting doing essentially nothing.

If you feel like reading, view the full story here by Bernama.