Mudajaya commissioned 10 MW solar farm in Pahang

We have seen Kumpulan Melaka Bhd commissioned its big solar farm quite recently at Melaka World Solar Valley and now Mudajaya - a construction company - has entered into this profitable but limited business of producing energy from solar.


The internal rate of return is (interpreted as) 14% to 16%. Starbiz, June 2, 2014


The headlines of this news would be:

Mudajaya has commissioned a 10-MW solar farm in Gebeng, Pahang, and signed a renewable energy power purchase agreement with Tenaga Nasional Bhd for a concession period of 21 years.

The feed-in-tariff (FiT) rates approved by the Sustainable Energy Development Authority Malaysia (SEDA) for phase I and II of the solar energy power development of 5 MW each are RM0.9016 per kilowatt hour (kWh) and RM0.8295 per kWh, respectively. - Page 2, Starbiz, June 2 2014

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The Green Mechanics 2 cents:

No qualms at all on big players getting the big chunk of the limited solar PV quota, but being one of the public contributors to the Renewable Energy fund (you pay 1.6% on top of your electricity bills nowadays), I am entitled to my opinion that many, not just few, companies and organisations should be given better opportunity to participate.

If SEDA allocate, say, 65 MW of solar PV quota for 2014 then if big conglomerates get 'allocated' for 5MW or 10MW then only few would benefit from the fund.

And I thought all these companies would need to go through balloting process. Did Kumpulan Melaka and Mudajaya Group go through the lucky draw? Am I implying that some people negotiate to get quota rather than being lucky at the ballot box? No, but if there is one thing SEDA can do to eliminate doubts, it would be to periodically and frequently publish the on-goings at its office - e.g. Full report on applications, elimination process, eligible applicants, allocation register, list of companies and quota, etc. This would be on top of the updates it makes on its portal.

Don't expect people to keep coming to the website to check for news; reach out to the public by going to the mainstream media, newsletter, emails, etc. These people are your financiers!

Renewable Energy initiative should be an effort to first make the people aware by getting as many organisations as possible to participate. Thereafter, you can embark on capacity.

This may take longer to achieve the capacity target, but if your RE fund size is only that big then that's the pace you have to make do with.


Readings of interest:
- Solar farm by KMB
- Solar farm by Mudajaya

Briefing on 2014 Feed-in tariff Application Administration Guidelines

The Feed-in Tariff (FiT) program for renewable energy now covers Sabah FT Labuan. For the interested parties there will be briefing on the 2014 FiT Application Administration Guidelines in Sabah as follows:

Date	:	16th April 2014
Time	:	9.30 a.m. – 11.30 a.m.
Venue	:	Mini Theaterette, 2nd Floor, Wisma SESB, Kota Kinabalu
Registration fee	:	FREE

Following the announcement by the Minister of Energy, Green Technology and Water on the 1st April 2014 on the quota allocated for Feed-in Tariff programme, SEDA Malaysia will be having a briefing session with members of the public and the industry on the upcoming release quota commencing 2nd May 2014.

The briefing covers update on the recent changes to the rules, regulations and administrative guidelines related to the Feed-in Approval (FiA) applications . SEDA portal stated that Registration is free, however seats are limited and you need to register early to book your seat.


Tentative Programme:

8.30 am	:	Registration
9:30 am	:	Briefing on Quota Feed-in Tariff application and other requirements by  Ir. Dr Ali Askar Sher Mohamad, Chief Operating Officer, SEDA Malaysia
10.30 am	:	Dialogue between SEDA Malaysia and Industries and Q&A
11:30 noon	:	End of dialogue session

TheGreenMechanics: If you've been asking how your application is being administered, and what is the process involved, this is a good time to catch up with things.

Jump here to register.

SEDA Malaysia announced new degression and bonus rates for Biomass, Biogas and Solar PV

During the 2nd International Sustainable Energy Summit (ISES) 2014 last week, SEDA Malaysia was expected to announce the renewable energy (RE) quota for this year.

It was deferred, but there was an equally interesting announcement, which touches on the new rates of bonus and degression for three RE sources - Biomass, Biogas and Solar PV. This is to encourage take-up rate of biomass and biogas which has seen slow response.


Table1: Biogas and Biomass, effective January 1, 2014



Table 2: Solar PV effective March 15, 2014



Key changes: Biomass and Biogas

• Degression rates for both biomass and biogas have been reduced from 0.5% to 0%
• Increase of bonus rate for use of locally manufactured or assembled gas engine technology (biogas) and use of locally manufactured or assembled boiler or gasifier (biomass) from RM0.01 per kWh to RM0.05 per kWh for both technologies. 

Note: These new degression and bonus rates are effective from 1st January 2014.


Key changes: Solar Photovoltaic (PV)

• Degression rates adjusted to 10% across the entire Schedule, except for the bonus criteria of locally manufactured or assembled solar PV modules and solar inverters. 
• For the two bonus criteria, degression rates are retained at 0% and their bonus rates adjusted from RM0.03 per kWh (solar PV modules) and RM0.01 per kWh (solar inverters) to RM0.05 per kWh for each of them. 

Note: The new degression and bonus rates for solar PV are effective from 15th March 2014.


For complete reading of the press release, visit here.

Are we paying too much for Renewable Energy fund?

From the few briefings conducted by the utility company (SESB), and other seminars in which SEDA Malaysia took part, I gathered that many feedbacks on the quantum of RE surcharge in the consumers electricity bills point towards disagreement.


Earlier article pertaining to the revision of surcharge from 1% to 1.6% effective Jan 1, 2014


Some say that we should maintain the 1% rate introduced in 2012. Some say we should not be charged anything at all.

At one of the briefings, the president of the Federation of Sabah Industry (FSI) argued that, while agreeing with the government effort  in promoting green technology, we should not be asked to pay the levy, having already hit hard by the electricity tariff hikes effective Jan 1 this year. Instead, the government should allocate budget for the purpose. To this, I tend to agree; the government should not stop at the RM300 million it contributed when the fund was set up at the end of 2011.

Are we paying too much, relatively? Paying 1.6% more for your utility bill may be a bit burdening but let's look at what are the rate in other countries implementing FiT mechanism:

COUNTRY		SURCHARGE IMPOSED
Germany	-	19%
Italy	-	8%
Portugal	-	5.6% (industrial), 6.2% (residential)
Thailand	-	2% (2013), 8% - 10% once 7GW of RE project is operational in few years time
China	-	3%
Japan	-	3%
United Kingdom	-	2% to 3%
Australia	-	2.4%
Malaysia	-	1.6%

*Data obtained during presentation by SEDA's Dr. Wei-nee Chen in Kota Kinabalu.


We have the lowest surcharge

Compared to others, we are actually paying much less. SEDA is looking at 2% but this, according to Dr Wei-née Chen, was not approved by the cabinet. I have no qualm if it will eventually be approved, but the government should also look at other ways of funding the RE, including setting aside some fund from its coffer.

Malaysian Photovoltaic Industry Association, MPIA's suggestion to make “carbon tax” as a source of funding for renewable energy is also interesting and is worth looking into.

By taxing carbon polluters, which include coal power plants, the transport sector and industries, these sector would be compelled to curtail their carbon emissions. An incentive may be given to those who make effort in reducing carbon emission, in the form of lower surcharge. The quantum is to be calculated after a careful study.

Notwithstanding, we should support the effort to promote sustainable energy in Malaysia.

Japan FIT changes could see the end of Residential PV Program

Japan will announce its new FIT rates sometime in March and it will become effective April 1, 2014.

And the policy change may affect the growth of the Japanese PV market, according to Renewable Energy World (REW). To re-cap, the current support from the government on residential in terms of rebate and feed-in tariff (FIT) programs, has made Japan one of the world's top markets.


End of residential PV program?

The national residential PV subsidy program which started 20 years ago will be ended. When the program closes its door in March 2014, it is expected to have solarized over 1.5 million residential roofs, or added about 6 GW-worth of PV capacity, in Japan.

Japan's residential PV installation from 1994 - 2013. Source: REW

Japan initiated solar technology R&D and field testing under the "Sun Shine Project" in the 1970s. The Project was to bring a safe, stable energy supply to the nation. As part of the Sun Shine Project, the government launched the Residential PV System Dissemination Program in 1994.

REW reported that during the first 10 years of Japan residential PV program, it dominated the world PV market in terms of both installation and production. The average residential PV system cost was greatly reduced to ¥661 per watt even with an incentive rate of just ¥20 per watt (or 3% of the system cost)

The residential incentive was stopped in 2005 and the domestic market declined. So, in 2009 the federal government brought back the residential PV incentive program with an incentive rate of ¥70 per watt. The domestic PV market was revitalized and Japan celebrated its one million solar-roof installations in April 2012.


Focus on large non-residential segment

Japan shifted its focus from the traditional residential segment to the non-residential segment with the launch of the national FIT program in July 2012. The national government believed that deploying the larger, non-residential segment was a quick way to expand the national PV market and to catch up with Germany and Italy.

The Ministry of Economy, Trade and Industry (METI) approved close to 25 GW worth of PV systems under the FIT program between July 2012 and October 2013. Systems sized over 1 MW represented about 60% of the approved systems.

The agency mandated project status reports to FIT applicants who reserved the FY2012 FIT rate (¥42/kWh) between April 2012 and March 2013 for a system sized over 400 kW. Out of 13.3 GW (or 4,699 systems), METI found that only 8% of the FIT-approved PV capacity has become operational as of this January. In fact, 4.7 GW worth of the approved projects have neither selected a site nor placed a purchase order for the equipment.

Project Status		No. of System	GW
Operational		1,049	1.1
Withdrawn		419	0.9
Not operational	Site decided and system purchased	1,588	3.9
	Either site decided or system purchased	784	2.6
	Neither site decided nor system purchased	758	4.7
Not responded		101	0.2
Total		4,699	13.3

Table: METI Fiscal Year 2012 FIT PV Project Survey

What about delayed projects?

METI announced that it will disqualify uncommitted projects from the FIT program. For example, the projects that are categorized as "neither site decided nor system purchased" will be delisted if they fail to show proof of valid millstones by this March and the projects categories as "either side decided or system purchased" will be disqualified unless they commit both site selection and system purchase by the end of this August.

Cost of system by size: The average installed cost of systems greater than 1 MW increased to ¥305 per watt in the fourth quarter of 2013 from ¥280 per watt in the same quarter in 2012


FIT for FY2014

METI will decide on new FIT rates, which would take effect April 1, 2014. There is a rumor circulating among PV project developers that projects can be disqualified unless a system purchase or installation order is placed within six months of the date of the FIT application approval notice.

Japan is also considering toughening the FIT application approval process and imposing time restrictions to weed out bad applicants.


TheGreenMechanics' two cents:

During a recent solar PV presentation session by one of the local PV project developers/implementers, we learnt that similar cases of delayed or cancelled projects are also happening in Malaysia. If that is the case, there should be a mechanism to eradicate non-genuine applicants from the electronic balloting system.

Genuine applicants with financial capability that sit low in the pecking order (Malaysia's balloting for quota is on first-come-first-served basis) should move up priority ladder automatically as soon as the 'returned' quota is released by SEDA.

Note: This is an excerpt from a long article in REW magazine published on Feb. 20, 2014 and if you want to read the full report, you can do so here.

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.

Feed-in Tariff (FiT) & SAVE Roadshow

The organiser of this roadshow (or rather mini-roadshow) is Centre for Environment , Technology and Development Malaysia (CETDEM).

FiT & SAVE roadshow in Kota Kinabalu last month (13-14 January)

The Kuantan Roadshow

CETDEM is inviting the the public to join its  Feed-in Tariff (FiT) & SAVE Roadshow in Pahang. It is aimed at promoting the awareness and understanding of Renewable Energy & Energy Efficiency.

The roadshow details are as follows:

Date	Time	Event	Location
15 February 2014 (Saturday)	10.00 am - 4.00 pm	Mini Exhibition	Berjaya Megamall, Ground Floor, Kuantan Pahang. ( Main Entrance)
16 February 2014 (Sunday)	8.30 am - 1.00 pm	Workshop - Participation by    registration only	MS Garden Hotel, Kuantan Pahang
		- Bring along your   3 month electricity bill

Further information can be obtained from CETDEM ( Mr Anthony Tan) during office hour at :
Tel : 03-78757767
Email : ed@cetdem.org.my


The Organiser

CETDEM is a non-profit, training, research, consultancy and development organization, which commit itself to improving environmental quality through the appropriate use of technology and sustainable development. you can type CETDEM on your search engine and you will be able to read everything you need to know about the organisation.

KK Experience

They have organised a mini-roadshow in Kota Kinabalu on 13 - 14 January 2014 which, to me, was a tricky one to locate. It was scheduled to be located outside senQ at Suria Sabah but when I enquired the folks at the electronic retailer, they seemed to have no knowledge of any booth of any roadshow there.

Inquery at the phone listed in the advert also did not help. I managed to find it by accident on my way out of the shopping mall.

Hope this would not be the case for the Kuantan roadshow.


Bring in more exhibitors!

If CETDEM is not affiliated to any particular RE (FiT) implementer, it should bring in more exhibitor so that the public can have more exhibits to look around. Also, the type of services and product/brands on offer should be wider.

Rooftop solar under the FIT in Sabah - your commitment starts at RM722 per month

One of the earlier service providers and system integrators in Sabah has kick-started their campaign as soon as the FiT mechanism for renewable energy is implemented here.

They held a mini roadshow at Suria Sabah shopping mall earlier this month, followed by a workshop at one of the better known hotel in Kota Kinabalu. I visited their booth but did not attend the workshop.

"Turn the sunlight into cash". Possible if you are willing to invest.

Their brochure illustrates the following investment and income generated from the venture. In this case, it is Solar PV installed on rooftop, with FiT at prevailing rate.

System size	Price (RM)	Financing  Tenure	Monthly Repayment (RM)	Monthly    Income (RM)
12.00 kW	112,000	10 years	1,264.72	1,545.78
9.60 kW	82,800	10 years	1,038.88	1,236.62
7.80 kW	68,400	10 years	858.20	1,004.75
6.60 kW	57,600	10 years	722.70	850.18

From the table, we can work out the estimated income as follows (taking a 6.6kW solar PV as an example):

A solar PV system size of 6.6kW would cost RM57,000 and you would need to come out with 10% down payment. 10 years financing is available and your monthly commitment with the financing bank is RM722.70 and your projected monthly income would be RM850.18 (approximately). Minus the loan repayment, you'd still have a cash surplus of RM127.48

This means that the investment is self-financing and at the end of the 10-year tenure, the generated RM850 is all yours. Good enough to pay up the electricity, telephone and water bills.

In a nutshell, the contract allows you to sell the electricity generated from your rooftop to Sabah Electricity Sdn Bhd (SESB) at a much higher price (actual rate to be known during the application process) for a period of 21 years.

This is not an advertisement and therefore, no contact numbers are given. I have their numbers and the name of the persons to contact should anyone is interested.

TheGreenMechanics: This is just one quotation/projection from a single solar PV service provider. Let's hope more service providers come up with more competitive pricing as prices of solar panels continue to drop.

FiT and SAVE roadshow in Kota Kinabalu

For consumers in Sabah and FT of Labuan who are new to the FiT implementation, this would be a good opportunity to learn and ask questions on how you can take part in the renewable energy program in Malaysia.

Also, you can find out how you would benefit from the Feed-in Tariff mechanism. Apart from that, you will get a tip or two on how to save/conserve energy through energy efficiency.

Daily Express, January 8, 2014

While not in any way affiliated to any of the sponsors/organisers listed above, I personally recommend interested individuals and organisations to make at least a visit to the mini roadshow, to get the feel and get yourself updated with the latest development in the RE industry in Malaysia.

The tagline 'Jimat Tenaga, Jimat Wang, Janakan Tenaga' is not the typical catchline you see on many adverts. They are viable and several financial institutions are already providing financing for RE ventures for individual.

Schedule:

January 13, 2014 - Mini roadshow, or expo at Suria Sabah, Ground Floor
January 14, 2014 - Workshop at Promenade Hotel, Kota Kinabalu.

What you can do is to visit the mini roadshow and if you are interested with what you see, sign up for the Workshop the next day. This is not a walk-in workshop and you have to register in order to participate.

Find out more at CETDEM (Centre for Environment, Technology & Development, Malaysia):
Tel: 03-78757767, Cellular: 017-2587293
e-mail: f&s@cetdem.org.my
Contact person: Ms Barbara

Have a fruitful workshop! By the way, January 14 is a Public Holiday, so, working individuals should be able to make it.

FiT mechanism to be implemented in Sabah in 2014

Feed-in Tariff (FiT) is a mechanism introduced in 2011 to promote renewable energy in the country, under the Renewable Energy Act 2011.

The implementation is under the purview of the Sustainable Energy Development Authority (SEDA) Malaysia, an agency under the Energy, Green Technology and Water Ministry (KeTTHA). The Minister concerned happens to be from Sabah as well and it is just fair that we should take part actively in the promotion of renewable energy.


Your contribution to the RE Fund is illustrated on the highlighted column. Source: SESB tariff leaflet


Why do I need to contribute to the fund

It is about participation by the masses, in particular, those who consume large amount of energy. In Malaysia, those consuming 300kWh or more of electricity in a calendar month will contribute to the fund.

The more you consume, the more you pay. So, in a way, it is a means for you to pay your penalty back to nature  for the pollution caused by you for using energy. Note that, for every unit of energy you use, you are 'doing your part' of polluting the environment as power generators emit certain amount of CO2 in the process.

There are cleaner methods of producing electricity but they are more expensive. Because they are more expensive than the conventional fossil-fueled generators, your participation is required, and one way to. Do that is by contributing to the Renewable Energy Fund (RE Fund).

In Malaysia the RE Fund is managed by SEDA. TNB and SESB are only helping in collecting the levy from us. These utility companies will then channel the money to SEDA and they don't get a single cent from the collection.

From the available fund, SEDA would then formulate FiT rates which makes investment in renewable energy plants viable for companies and individuals.


But 1.6% of my total bill amount is too much!

If you ask me this, I'll say I agree with you.

When the fund was first created, SEDA only collect 1% from big consumers, plus, the government put an opening fund amount of RM300 million. I understand that the fund quickly evaporated as SEDA started to disburse payment to FIAHs and as it released more quota for solar PV to individuals and non-individuals.

That was when they proposed to collect additional 0.6% from consumers. Some interpreted this as 'sucking more blood from the rakyat'. I am neutral as far as quantum is concerned. But I believe it should be done in parallel with something.

And that something is none other than additional contribution from the government. The initial RM300mil is long gone, you need to inject more money if you are being fair to the consumers who are being levied 1.6%

I say the government need to and should contribute! Start small. For every Ringgit that is collected from consumers, the government match it with RM1.00 then we'll see how it develop.

TheGreenMechanics: Come January 1, I will be one of those affected by the FiT levy, so, I'll be watching the development very closely. Please don't squander the money you collect from my pocket. I support renewable energy, so, let's make this RE venture a successful one.

One day, I'd like to see my roof covered with 20m² of efficient PV panels giving me 8kWp of solar power.

FiT attracts RM4.3billion investment from private sector

Malaysia claimed that it is one of the earliest nations among the ASEAN regional grouping to implement FiT mechanism to promote renewable energy. To date, this has attracted around RM4.3 billion in investment from the private sector.


RE sources in Malaysia that fall under FiT mechanism: Solar PV, Small Hydro, Biogas & Biomass


Pretty good start but we are definitely not in the front rows. I reckon Thailand and Singapore would occupy the first two slots in terms of aggressiveness in implementing renewable energy and energy efficiency, with or without FiT.

The news piece below (quoting Bernama) is a bit confusing as it mentioned "to promote and increase non-renewable energy to about 2,000 MW (2 GW) by 2020".

I think it should read "renewable" and not "non-renewable". Non-renewable sources refers to fossil fuels (petroleum, coal, natural gas, etc) and at present we are already generating more than 15 GW of energy from non-renewable sources.

What we are targeting for in 2020 is to generate 2,000 MW of renewable energy.

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

For your reading pleasure....

531MW Non-renewable Energy Under FIT Offered
Bernama, November 22, 2013

PUTRAJAYA -- The Energy, Green Technology and Water Ministry has offered 531 Megawatt (MW) electricity to the renewable energy sector under the Feed-In Tariff (FiT) incentive mechanism until the first half of next year.

Minister Datuk Seri Dr Maximus Ongkili said the implementation of the FiT mechanism for the renewable energy sector has attracted investments totalling RM4.3 billion from the private sector.

The investments are estimated to provide 11,700 new job opportunities, he said at the ministry's 2013 Industry Award presentation.

Ongkili said Malaysia was among the earliest nation in the 10-member Asean regional grouping to implement the FiT mechanism to promote and increase non-renewable energy to about 2,000MW by 2020.

The minister also said his ministry was taking measures to improve the FiT mechanism besides exploring other mechanisms to increase non-renerwable energy in the country. Ongkili also said Malaysia, among the first country to implement the electric vehicle programme in 2009, has established 20 electric vehicle charging stations in Greater KL and in Melaka.

"Tests on electric buses are progressing smoothly. It is hoped that the target to have 2,000 electric buses by 2020 will be realised.

"We've to pursue the electric vehicle programme rigorously like what other countries are doing. They've implemented the programme seriously.

"For instance, millions of electric vehicles will be on the road in the United States by 2025," he added.

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

Dr. Yee is new chairman of SEDA Malaysia

Dr Yee Moh Chai has been appointed Chairman of the Sustainable Energy Development Authority Malaysia (SEDA Malaysia) effective Sept 1, 2013.

For a person who hails from Sabah, naturally his immediate task would to enable the FiT mechanism and other renewable energy initiatives such as biomass, hydro and solar energy to be implemented in East Malaysia - Sabah and Sarawak.

Currently, the implementation of FiT in Sabah is suspended until such time that the energy users here start paying the 1% levy.


Dr. Yee taking on new responsibilities

Dr Yee graduated with a medical and law degree from the University of Wales, United Kingdom, and had practised law in Kota Kinabalu. He was also Minister of Resource Development and Information Technology Sabah from 2004 to 2013 and former Api-Api assemblyman.

Announcing the appointment, Energy, Green Technology and Water Minister Datuk Dr Maximus Johnity Ongkili said the feed-in tariff (FiT) mechanism governed by the Renewable Energy Act 2011 operated entirely within a legal framework and Dr Yee’s legal background and vast experience in managing resources and information technology in the state would be a great asset to SEDA Malaysia.

SEDA Malaysia was formed under the Sustainable Energy Development Authority (SEDA) Act 2011 and helmed by Datin Badriyah Abdul Malek as Chief Executive Officer.

The key roles of SEDA Malaysia are to administer and monitor the feed-in tariff mechanism, promote sustainable energy in the country and advise the Minister of Energy, Green Technology and Water on policy matters with regard to sustainable energy.


TheGreenMechanics' two cents:

Let's hope Dr Yee would, during his 2-year tenure as Chairman, bring about changes in Sabah towards aggressive implementation of renewable energy projects here.

The vast supply of biomass, the best spot for solar radiation in the country, and the many potential areas for non-distructive mini-hydro installations in Sabah should benefit from his services.

SEDA pays out RM38 million to Renewable Energy feed-in approval holders

As of June 2013, SEDA Malaysia has paid about RM38 million to feed-in approval holders (FiAH) in the country.


What is Feed-in Approval Holder (FiAH)

FiAH is an individual or company who holds a feed-in approval issued by SEDA Malaysia, and the holder is eligible to sell electricity from renewable energy sources.

Example: If you have applied for FiT for installation of rooftop Solar PV from SEDA, and your application have been approved, you become a Feed-in Approval Holder.

FiT Quota Allocation
		Biogas	Biomass	Small Hydro	Solar PV (individual)	Solar PV  (non-individual)	TOTAL
Approved no.of applications	:	16	16	18	1,316	248	1,614
Approved capacity (MW)	:	25.33	150.29	115.05	16.64	173.14	480.45

Source: SEDA,    as of June 2013



RM38 million disbursed so far

Under the Renewable Energy Act 2011, individuals or non-individuals can sell electricity generated from renewable energy (RE) resources back to power utility firms at a fixed premium price for a specific time.

The four RE resources that are eligible for feed-in-tariff are biogas, biomass, small hydropower and solar photovoltaic (PV).

The payment is financed by an RE Fund contributed by electricity consumers who consume more than 300kWh of electricity per month. The current 1% extra charge translates to about RM300mil per annum.


“The amount of quota to be released depends on the amount of RE Fund which comes from the 1% extra charge currently imposed on the electricity tariff. The release of new quotas would depend on the next extra 1% supposed to be imposed in the next electricity tariff review, which is yet to be announced by the Government.” - SEDA Malaysia interviewed by StarBiz.


Can FiAH be revoked?

SEDA would not hesitate to revoke the licences given to FiAH who did not comply with the required project milestones. However, it is a tedious process to revoke FiAH and the revocation was legal, and thus, the authority would need some time to check if all milestones had been met.

The basis for revocation is always because FiAHs are unable to meet their milestones on project progress despite repeated reminders.

As of June 30, Seda had approved a total of 1,614 applications, with a total capacity of 480.45 MW, out of which 189.78 MW was from Solar PV.


Source: TheStar

People's power: Western Australia reversed decision to cut FiT rate for residential Solar PV

Australians living in Western Australia enjoy rooftop solar PV feed-in tariff rate of A$0.40/kWh (approx. RM1.19/kWh) and this is slightly lower than Malaysia's rate of RM1.37/kWh.

But what's interesting here is the state government's reversal of its earlier decision to halve the currently A$0.40 per kWh to A$0.20 per kWh amidst strong protest from people with solar panels installed on their rooftops.

It's encouraging to note that there are about 75,000 solar-owning voters in Western Australia. This shows that at a rate lower than Malaysia's, solar power is very much viable.

Here are the details:

6-panel solar PV array on suburban Australian rooftop. Image by: REW

Western Australia backs down on Solar Feed-in Tariff cut

Western Australia’s government today announced a reversal of its earlier decision to retrospectively halve its AUD $0.40/kWh feed-in tariff (FiT) for residential solar power, only four days after announcing it.

Premier Colin Barnett said during weekly cabinet meeting that the decision to cut the FiT had been a mistake.

The state’s budget, announced last Thursday, said the FiT would be retroactively halved to $0.20/kWh in a bid to save $51.2 million over the next four years. But since then MPs have been deluged with protests from angry voters, including a petition organised by solar advocacy group Solar Citizens which the group said gathered 8000 signatures in just three days.

Solar Citizens also began a campaign to focus on unseating politicians holding marginal seats in solar-heavy areas.

The strength of the protest caused a political firestorm, with The West Australian newspaper reporting that criticism even came from within the governing party.

But the real surprise was the mobilisation of what the government estimates are 75,000 solar-owning voters in the state, which apparently frightened politicians in light of Australia’s upcoming federal election on 7 September.

“Quite simply, we got this decision wrong and we have to fix it. We have listened, and we appreciate the commitment that many people have made to take up renewable energy, like solar power.” - Western Australia Premier, Colin Barnett.

TheGreenMechanics: Our FiT rate is considered more attractive and is funded by consumers that consume more energy. Small energy users are not affected. That's fine by me.


Source: REW

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

SEDA Malaysia releases 500 kW of solar PV for individuals

Typical grid-connected rooftop solar PV system.

Date of release  : 30th July 2013
Quota size          : 500 kW
Category            : individuals

Putrajaya (Tuesday, July 30,  2013): In response to the individuals' demand for the FiT for solar PV, SEDA Malaysia has released another 500 kW of solar PV quota for the individuals today. This will give opportunity to about 120 homes/individuals based on installation size of 4kWp.

In an announcement on its official website, SEDA Malaysia said it will monitor the quota especially for the individuals on regular basis and release quota on the premise of RE Fund allocation.


Loans for home Solar PV systems

In the previous article, I wrote about the loan for financing your home solar PV system. Margin of financing is up to 90% with tenure of up to 10 years.

Now that the quota for individuals has been released, it is time to grab the opportunity.


AUGUST UPDATES:

August 5, 2013:  SEDA Malaysia released 500kW of solar PV for the individuals

August 1, 2013: SEDA Malaysia released 900 kW of solar PV for the individuals

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.