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.

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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.

SEDA Malaysia clarifies on 1% surcharge in electricity bills

Lately, people have been talking in the negative tones and putting the 1% levy on electricity bills in a bad light.

The social media talked about this surcharge as 'an increase in the electricity bills' that is inevitable as the government is looking to recover some of its expenses in the run up to the election. This is NOT TRUE.

I have been following the FiT Scheme development in Malaysia and the 1% surcharge is imposed only on consumers consuming higher-than-average energy - as a rough guideline, consumers with monthly bill of RM77 and above.


This is what SEDA Malaysia has to say:

KUALA LUMPUR, May 2 (Bernama) -- The Sustainable Energy Development Authority (SEDA) Malaysia has clarified that the one per cent surcharge in electricity bills is a contribution towards the Renewable Energy (RE) Fund for the Feed-in Tariff (FiT) mechanism, which commenced on Dec 1, 2011.

SEDA Malaysia today issued a statement to clarify the purpose of the surcharge imposed by Tenaga Nasional Bhd in its electricity bills to consumers.

Chief Executive Officer Badriyah Abdul Malek said: "This clarification is necessary because we noticed that the surcharge has become an issue in the online social network over the past few weeks.

"The main function of the RE Fund is to pay the tariff for the electricity generated from renewable sources by renewable energy producers and individuals under the FiT mechanism, which is managed and administered by SEDA Malaysia," she said.

The fund, established through the enforcement of the Renewable Energy Act 2011, is an important part of the FiT mechanism to spearhead the growth of renewable energy in the country.

The public is urged to seek clarification with SEDA Malaysia on any questions regarding the one per cent surcharge.
Source: SEDA website.


TheGreenMechanics: Don't take the stories in the social media at face value.

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.

SEDA Malaysia announced release of 20 MW solar PV quota for non-individuals under 500kW

Announcement date       : Wednesday, 27 March 2013
Solar PV quota               : 20 MW
Category                         : under 500kW, non-individual
Opening date                  : 2 April 2013, 12.00 noon
Degression rate               : 20% for installation exceeding 24kWp
Degression rate (bonus criteria) : changed from 8% to 0%
Degression effective date          : 28 March 2013


SEDA Malaysia Announces Opening of 20 MW of Solar PV quota on 2nd April 2013

Sustainable Energy Development Authority Malaysia (SEDA Malaysia) have announced the long anticipated solar photovoltaic (PV) release of the 20 MW of solar PV quota for the non-individuals under the 500kW category.

The solar PV quota will be released on Tuesday, 2nd April 2013 at 12 noon. Chairman of SEDA Malaysia, YB Tan Sri Dr Fong Chan Onn said that these 20 MW solar PV quotas is subjected to the degression rates of 20%, for installed capacity exceeding 24 kW, as previously announced by the Ministry of Energy, Green Technology and Water (KeTTHA).

Snapshot of the current SEDA FiT rate. For installation size of above 24kW, due to the announced 20% degression rate, come Jan 1, 2014, FiT rate would not be RM0.9988/kWh but lower.


The degression rates for bonus criteria of locally manufactured PV modules and inverters have been reduced from 8% to 0%. These degression rates are effective as of 28th March 2013.

Feed-in Approval (FiA) applicants who are applying for the 2013 solar PV quota need to ensure that their solar PV systems are commissioned before the 1st January 2014. If they are unable to commission within the FiA application’s approval year, their FiT rates for the following year shall be subjected to the degression rates prevailing at the point of application, i.e. 20%

Example of the consequence of the inability of FiAHs to have their solar PV systems commissioned before the 1st January 2014:

Installed PV capacity: >24kWp
Degression rate: 20%
Note: SEDA Malaysia is obliged to review the degression rates twice a year

If the degression rates are subsequently revised downward to say 9% on 1st January 2014, any feed-in approval holders (FiAHs) of 2013 who fail to commission their PV systems (installed capacity > 24 kW) by 31st December 2013 is still subjected to the degression rate at the point of application which will be 20%.

The new 9% degression rate is only applicable to applicants who applied after 31st December 2013. This means any FiAHs who are unable to commission their solar PV system before 1 January 2014 will have their rates degress to another 20%.


Source: SEDA Malaysia press release

RE Project Competition: ASEAN Energy Awards 2013

For those who managed to get the quota for renewable energy projects under SEDA's FiT, and those who have been in the RE business for sometime now, this is the time to showcase your works.

At the same time, get some reward, if yours is/are the ones that are better managed.

Solar-Diesel generator hybrid power in Kinabatangan, Sabah Malaysia. This system was installed and commissioned in Sept 2012 by Optimal Power under KPLW project.


Competition

Sustainable Energy Development Authority (SEDA Malaysia) as the coordinator for ASEAN Renewable Energy Sub-Sector Network (RE-SSN) is inviting owners/managers with renewable energy projects in Malaysia to participate in the ASEAN RE Project Competition 2013 organised by ASEAN Centre for Energy (ACE).

This includes biomass, biogas, solar, mini hydro projects, and there will be 3 categories namely:

A - OFF GRID
B - ON GRID
C - COGENERATION

Interested Project Owners or Managers can submit the report by 29th March 2013 (Friday) to:

The AEA 2013 - RE Project Competition Secretariat

SEDA Malaysia

Galeria PjH, Aras 9, Jalan P4W,

Persiaran Perdana, Presint 4,

62100 Putrajaya, Malaysia.

Phone : +603-8870 5800 Fax : +603-8870 5900

Contact Person:

Mr Mohd Idham (idham@seda.gov.my), or

Mr Haniff Ngadi (haniff@seda.gov.my)

More details can be obtained from SEDA Malaysia website.

Previous winners

Meanwhile, 2012 ASEAN RE Awards Malaysian winners are as follows:

A. Off grid

2nd Runner-up:

SOLAR PV/DIESEL HYBRID SYSTEM FOR REMOTE SCHOOLS
In the State of Johor, Malaysia.
(There was no winner for the Off-grid category last year)


B. On grid

Winners:

4MW SUNGAI PERTING MINI HYDRO POWER STATION
At Sungai Perting, Bentong, Pahang Malaysia.

2nd Runner-up:

LANDFILL GAS EXTRACTION AND POWER GENERATION SYSTEM
At Bukit Tagar Sanitary Landfill, Malaysia


TheGreenMechanics: It pays to go green!

SEDA release 20MW FiT quota for non-individual solar PV

An update on solar PV (and other FiT approved RE) in Malaysia.

After seeing the non-individual Solar PV quota being snapped within less than an hour at the launching in December last year, SEDA recently announced the opening of another 20MW of FiT quota.

This would be for installation size of less than 500kW and for scheduled commissioning in 2013. Application starts on Dec 17, 2012.

As of September 2012:-

Approved applications:                          Installed capacity:
Solar PV (individual)          - 362                156.65 MW
Solar PV (non-individual)   - 133                9.86 MW
Biogas                             - 13                 20.53 MW
Small hydro                     -  14                 86.05 MW
Biomass                          - 13                 131.40 MW

TOTAL APPROVED INSTALLED CAPACITY = 404.49 MW

The over 400MW of renewable energy is a good start but I am quite sceptical about the authority's ability complete and commission them within the stipulated time frame.


Read more...

SEDA ANNOUNCES RELEASE OF 20MW
via The Star
PUTRAJAYA: Sustainable Energy Development Authority Malaysia (Seda Malaysia) is opening 20MW of non-individual solar photovoltaic (PV) feed-in tariff (FiT) quotas for installation (less than 500kW) and will be made available for projects to be commissioned next year.

Seda Malaysia chairman Tan Sri Dr Fong Chan Onn said the application could be made through the e-fit online System at www.efit.seda.gov.my beginning Dec 17 this year. He said applicants must comply with the Renewable Energy Act 2011 and also the Renewable Energy (feed-in approval and FiT rate) Rules 2011.

”The new degression rate for solar PV is set at between 8% and 15%. The rate will be finalised and approved by the Energy, Green Technology and Water Minister, which will be enforced next year,” he said at a press conference after the opening ceremony of the International Sustainable Energy Summit 2012.

Fong said the quota for installation larger than 500kW would be announced next year.

Energy, Green Technology and Water Ministry secretary-general Datuk Loo Took Gee represented Minister Datuk Seri Peter Chin Fah Kui at the opening of the two-day event, themed “Empowering Nations via Sustainable Energy”.

With the implementation of the FiT mechanism on Dec 1 last year, Fong said Seda Malaysia would continuously strive to provide awareness to the public on any updates pertaining to the FiT mechanism implementation.

As of end-September this year, he said Seda Malaysia had received a total of 1,090 feed-in approval applications and approved a total of 535 applications. He said the approved applications from solar PV for the individuals ranked the highest with 362 applications, followed by solar PV for non-individuals (133).

”The number of approved applications for biogas is 13, small hydro 14 and biomass 13. In terms of installed capacity, a total of 404.49MW has been approved, of which 156.65MW is for solar PV for the non-individuals, 131.4MW for biomass, 86.05MW for small hydro, 20.53MW for biogas and 9.86MW for solar PV for the individuals.

”From all these, some 1,684 GWhr per year of energy will be generated enough to power 467,000 homes and avoid 1.16 million tonnes of carbon dioxide per year.


Source

India’s RE industry interested in Malaysia’s FiT system

My understanding (from the article) is that India is interested in doing RE business in Malaysia, rather than on "Malaysia's feed-in tariff system" itself. The report implied that India's renewable industry is interested to learn from Malaysia's way of implementing the FiT. It's a bit funny as India's RE industry is more matured than ours.

For instance, while we are struggling to register our first 50MW in cumulative energy generation from solar, India's solar power capacity has surpassed 1GW as of June 2012.

India’s renewable energy industry interested in Malaysia’s feed-in-tariff system
November 06, 2012 - Bernama

NEW DELHI: India's renewable energy (RE) industry is interested to partake in Malaysia's feed-in-tariff (FiT) system, said TNB Energy Services Sdn Bhd's head (business development), Mohd Azhar Abdul Rahman.“They are keen to know more on micro grid and FiT and are interested to be technology partners,” he said.

The FiT system is Malaysia's new mechanism under the Renewable Energy Policy and Action Plan and the Renewable Energy Act 2011 to catalyse generation of renewable energy, up to 30 MW in size.

This mechanism allows electricity produced from indigenous renewable resources to be sold to power utilities at a fixed premium price for a specific duration.

Mohd Azhar, who participated in the two-day Asean-India Workshop on Cooperation in RE, told Bernama that allowing foreign stake of up to 49% in FiT mechanism was among the attractions to the RE industry in India.

According to Sustainable Energy Development Authority Malaysia, which manages and oversees the FiT system, a company incorporated in Malaysia having a foreign person, (alone or together with other foreign persons), holding no more than 49% of voting power or the issued share capital of such company may also apply for feed-in approvals.

Malaysia, Mohd Azhar said, could also tap into India's technology in RE.

“They are aggressive in RE. Their industry is matured. They have good RE equipment and manufacturers that we can explore and adapt too,” he said.

Among others, Mohd Azhar said, India's solar panels and modules were impressive.“We can explore them further and suit them to our needs,” he said. - Bernama

+     +     +     +      +     +     +     +     +      +

TheGreenMechanis: However, if India is interested in doing Renewable Energy business in Malaysia, we will be more than happy. In return, 49% ownership is not bad for foreign companies.

They are welcome to invest here. Why not.

Homeowners can apply for Solar Rooftop from Sept 24

I wrote an article recently about SEDA Malaysia's target of 2,000 house owners to invest in solar power through the feed-in tariff incentive by the end of this year.

The good news has finally arrived. A couple of weeks ago The Star reported that owners of landed homes can start applying for the 2000 quota starting September 24, 2012. They can do this by applying through  the e-FiT Online System.

Roof top solar PV installation for landed home. Photo: Solar Power Buzz


The 2000 Solar Home Rooftop Programme

SEDA chairman Tan Sri Dr Fong Chan Onn told newsmen that the authority would allocate 2,000kW of solar photovoltaic (PV) for the fourth quarter of 2012 and 6,000kW for 2013 to home owners interested in generating electricity from their rooftops.

“A directory of the solar PV service providers will be available at Seda from Sept 18 to assist home owners,” he said in a statement.

Dr Fong said the programme was open to only individual residents and each application must comply with the Renewable Energy (Feed-in Approval and Feed-in Tariff Rate) Rules 2011 and Administrative Guidelines under the Renewable Energy Act.

An applicant can only submit one application per day through the e-FiT Online System at efit.seda.gov.my. The e-FiT Online System was made available for public access since Sept 18 after going through system enhancements. - The Star Online, 14-09-2012


Programme Summary:

Programme            : 2000 Solar Home Rooftop
Period                    : 4Q of 2012
Organised              : Sustainable Energy Development Authority (SEDA)
Quota                    : 2 MW (4Q, 2012) and 6 MW (2013)
Eligibility                : Individual residents
How to apply          : Submit application through e-FIT online system. One application per day.
Investment return    : Expected ROI of 6 years
Earning                  : Average of RM500 per month for the REPPA of 21 years


Bad news for those who have applied earlier

If you have applied online prior to this date, your application would have been 'flushed out'. Meaning,  your applications would have been deleted. This is because of what SEDA described as 'upgrading'.

The Star (Sept.14, 2012):

"...Badriyah (CEO of SEDA) also said applications for feed-in approval that were sent earlier have been flushed out due to the system upgrade. She also encouraged interested applicants and prospective and renewable energy developers to attend Seda's roadshows which will be held soon to learn more about the programme."

For me this is a bad move (or weakness) by SEDA. The approval/quota is on first-come-first-served basis and because earlier applications are flushed out, they lost their advantages for registering early.

TheGreenMechanics: If you are eligible and you have what it takes to get it done on your landed home, go for it. Simple as that.


Abbreviations:
SEDA       - Sustainable Energy Development Authority
FiT           - Feed-in tariff
REPPA     - Renewable Energy Power Purchase Agreement

SEDA and PHTP (Perak) signed hydro-power training partnership pact

What is small hydro-power

The definition of a small hydro project varies but a generating capacity of up to 10 MW is generally accepted as the upper limit of what can be termed small hydro. We can say it is the development of hydroelectric power on a scale serving a small community or industrial plant. In North America, the generating capacity of small hydro can be stretched up to 30 MW or 50 MW.

Check here for an example of Proposed small hydro-power plants in Tuaran, Sabah.

Small hydro can be further subdivided into mini hydro, usually defined as less than 1,000 kW, and micro hydro which is less than 100 kW. Micro hydro is the one that I am so interested as I have always wanted to power up a small community of about 25 houses in my area.


SEDA approved small hydro-power

In Malaysia, small hydro-power as listed in SEDA Malaysia website, refers to installations with generating capacity of:

1) up to and including 10 MW (tier one)                 - FIT rate: RM0.24/kWh
2) above 10 MW and up to and including 30 MW   - FIT rate: RM0.23/kWh

These will qualify for Renewable Energy FIT for 'Small Hydro' for a period of 21 years from FIT commencement date.

Intake station of Amcorp's 4MW hydro-power plant in Sg. Perting, Pahang. It qualifies for Feed-in Tariff


Partnership: A smart move by Perak government.

While it is commendable that Malaysia rolled out its RE initiatives with by forming  SEDA to administer and manage the implementation of the feed-in tariff mechanism, it does little good if there is no technology transfer.

What Perak did was to get SEDA to actvely involved in its plan to train and maintain one of the RE sources, i.e. small hydro-power. One may say hydro-power has been here for ages, but Perak went the extra mile to go down to the grassroots - preparing the small players in hydro electric power generation.


SEDA to help Perak in hydro-power training

Bernama reported a couple of days ago that SEDA Malaysia has entered into a partnership with the Perak State Development Corporation, via Perak Hi Tech Park (PHTP) Sdn Bhd, to provide training on how to maintain small hydro-power plants.

The introduction of this course will benefit many prospective hydro-power plants developers. Under the partnership, PHTP will source technology experts from Brodarski Institute in Croatia to conduct the inaugural training, the first technical cooperation between Malaysia and Croatia.

SEDA said in a statement:
"One of the gaps identified by SEDA is the need to address the lack of competent human capital in terms of technical knowledge in designing, constructing and maintaining small hydro-power systems in the country. Hence, the collaboration with PHTP is most timely to address this gap".

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.

Australians brace for carbon tax impacts

Australia Prime Minister Julia Gillard hailed the move to bring in a carbon tax in a bid to tackle climate change. The tax on corporate pollution will force about 350 major polluters to pay A$23 (RM81.00) for every tonne of carbon emissions they produce.

Video grab from 7News. Power plant is one of the top industrial polluters that will be hit hard by the Carbon Tax implementation

    File picture by voanews.com. Australians are not happy with the introduction of carbon tax.

What is Carbon tax?

It's a tax on the carbon content of fuels or, in effect, a tax on the carbon dioxide emissions from burning fossil fuels. It levies a fee on the use of fossil fuels based on how much carbon their combustion emits. Sometime people call it pollution tax.


Australia did it on July 1

Many large users of carbon resources in electricity generation are resisting carbon taxation. Some notable examples are the United States, Russia, China and Japan.

PM Julia Gillard said that Australia has been debating on putting price on carbon and tackling climate change now for many long years. With the scheme, it is hoped that by 2020, Australia's carbon polution will be lesser by 159 million tonnes per year than it would be otherwise. This is equivalent to taking 45 million cars off the road.

Fixed carbon tax is for the first 3 years, followed by market-based carbon trading scheme after that.

Certain parliamentarian claimed that this 'flawed' policy will rake in $36 billion for the government over four years, and many small business as well as families are dreading its implications. Many believe that the cost of living will soar and it will hurt the industry.


Will we (Malaysians) be affected?

One of the industries that is bracing for the carbon tax implications is cattle production.

Beef Central Australia claimed that direct on-costs for producers will include a widely anticipated 9-10c/litre increase in the cost of aviation fuel, which affects the many larger-scale operations that reply upon helicopter and fixed wing-aircraft for mustering and property management.

We import large amount of cattle products from Australia as well as New Zealand, as such, we could perhaps also be on the receiving end.


Are we paying Carbon tax too?

Indirectly, yes.

Under the Renewable Energy Act 2011, there are four clean energy sources that are entitled to the FIT program, namely Biomass, Solar PV, Small Hydro and Biogas. Energy produced from these clean sources are paid premium rates and is funded by the 1% levy on consumers consuming 350kWh of electricity and above.

What this means is that the more energy you use -  which is primarily generated from fossil fuels - the more fees (or tax, if you like) will be levied on you. This is almost the description of Carbon Tax.

So, yes, in a way we are paying tax for similar purpose.

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

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.

Cypark and TNB signed Renewable Energy Power Purchase Agreement

Cypark Resources Berhad is one of the earlier takers of the RE quota made available by the federal government under the Renewable Energy Act 2011. 

Through this Act, the government formed Sustainable Energy Development Authority of Malaysia (SEDA Malaysia), a statutory body that administers and manages the implementation of the feed-in tariff (FiT) mechanism. Four renewable energy sources covered by this Act are Biogas, Biomass, Small Hydro and Solar PV.

I understand that another winning bidder of the non-individual category is Sabah Energy Corporation (SEC) in a joint-venture exercise with Sabah Electricity Sdn Bhd (SESB), a subsidiary of Tenaga National Berhad. The JV secured but all the available quota for the state of Sabah. Not very healthy for a noble intention to get more Corporations involve in reaping the benefit of the FiT.

Cypark's initiative can be seen moving aggressively; refer to the following images. We are yet to hear where and when is the JV of SEC-SESB going to start.

Dec 2011 file pix of Cypark's solar plant under construction, next to the Pajam landfil.
Image by The Star Online

Cypark's solar farm - Image by The Edge Malaysia

The rest of the news:

As reported by Business Times on 30-3-2012, environmental engineering and renewable energy specialist Cypark Resources Berhad, via two wholly-owned subsidiaries, has signed the renewable energy power purchase agreement (REPPA) with Tenaga Nasional Bhd (TNB) for a FiT concession period of 21 years.

The deal sealed by Cypark Suria (Pajam) Sdn Bhd and Cypark Suria (Negeri Sembilan) Sdn Bhd is for electricity generated from the parent company's 8MW solar park in Pajam, Negri Sembilan.With the deal signed under the Renewable Energy (RE) Act 2011, Cypark can sell its solar energy to TNB grid starting from March 28 this year.

"Cypark will start receiving payment from TNB within 21 days after monthly billing is issued. The total green energy sales from the 8MW solar plant is about RM11 million annually," Cypark group chief executive Daud Ahmad said in a statement.

He said Cypark is now focusing its effort in building other new solar projects in four states, with targeted additional solar power installed capacity of 25MW by year-end.

Starting from year 2013, Cypark expects to generate annual combined revenue of up to RM45 million from the implementation of 33MW solar farms alone and the revenue will be recurring until year 2033. Cypark's Pajam solar park, identified under Economic Transformation Programme, is part of the 15MW integrated renewable energy park project undertaken by the Main-Board listed company.