Hawaii's Kauai island to hit 80% Renewable Power by mid-2020s

This is a very exciting prospect for the island of Kauai as they expect to chart their path to 100% renewable electricity by mid century. With Hawaii's RE policy which encourage healty growth of renewables, Kauai's 80% clean energy ambition would not be difficult to achieve. 

The said project in Kauai is solar-charged water pumping system. This is how it is -- the island is almost entirely powered from RE at midday, and with some battery installed, part of the solar generated energy is stored in the battery bank. As the bank is fully stored, there is excess power that is suitable for pumping water to the reservoir which would then generate hydropower during the peak hours in the evening.

Beauty of Kauai.

View of Hanalei bay and Na Pali range. Photo credit: Steve Heap posted on Matador Network.

"It got to the point where we just didn’t have any more room in our daytime demand to take more solar." - Kauai Island Utility Cooperative, Brad Rockwell

Read more at GTM, link provided below. 

Source: greentechmedia

Solar PV industry to generate RM70 billion and 50,000 jobs by 2020

Although it has relatively small PV installed capacity with less than 300 MW so far, Malaysia maintains that it is one of the largest PV manufacturers in the world, coming third behind China and European Union. Is this still the case presently?

Maybe. Anyway, the point here is that we are indeed one of the world's biggest producer of solar PV panels and components, which is good news.

However, the relevant ministry's estimate of generating (just) RM70 billion from the PV industry does not commensurate (or is my expectation too high?) with it's tag line of Southeast Asia's 'manufacturing hub', and therefore not that encouraging considering the many global PV industry players in the country. Currently there are 8 companies involved in the PV manufacturing here, namely:

• First Solar (Kedah)
• Panasonic Energy Malaysia (Kedah)
• JA Solar (Penang)
• Jinko Solar (Penang)
• TS Solartech (Penang)
• SunEdison (Perak)
• SunPower (Malacca) and
• Q-Cells Malaysia (Cyberjaya)

SunPower plant in Melaka. Image by - AUO SunPower Sdn Bhd

The ministry did not elaborate on its reply to question in the parliament sitting but from what I gathered, some manufacturers are scaling back on production due to market conditions. Why? And how do we encourage them to boost or at least maintain their production volume? This is an area that the government would need to look into if it is to sustain the growth of the PV industry.

The other issues is that some of the solar PV project implementers prefer importing solar panels rather than using what is produced locally. It could either be due to the local manufacturer focusing more on exporting their procuct, or the local industry players perceive the local products quality as inferior hence the lack of trust in the locally produced goods. Either way, it's not benefiting the PV industry in the country.

Last month, we were approach by such implementer/system integrator and was offered panels sourced from abroad - I wouldn't name those countries. What's wrong with getting them from one of the above 8 manufacturers? Isn't SunPower based in the US, and Q-cells from South Korea? What is wrong with Malaysia?

The ministry's statement that "Various initiatives were undertaken directly by the ministry's agency" does not explain anything, at least not in the context of answering the question. But then again, some junior journalists may have missed few points from his speech. For me, I would want to know and would highlight those 'initiatives' in my reporting. Refer below for the news excerpt from Bernama.

===========================================

Photovoltaics (PV) Can Generate RM70 Billion, 50,000 Jobs

KUALA LUMPUR: Malaysia can potentially generate RM70 billion and 50,000 job opportunities from the photovoltaics (PV) industry by 2020.

Science, Technology and Innovation Deputy Minister Datuk Dr Abu Bakar Mohamad Diah said solar cell conductive coating materials contributed significantly to the thin-film technology industry in the country.

"Currently, Malaysia is the world's third largest PV manufacturers after China and the European Union," he said during the question and answer session at the Dewan Rakyat here today.

He was responding to Dr Rosli Che Mat (PAS-Hulu Langat) on the current development of thin-film technology and its significant contribution to the industry.

Abu Bakar said there were eight PV production companies in the country, namely, First Solar and Panasonic Energy Malaysia in Kulim Hi-Tech Park; JA Solar, Jinko Solar and TS Solartech in Penang; SunEdison in Ipoh; SunPower in Malacca; and Q-Cells Malaysia in Cyberjaya. He said the ministry had always supported and encouraged local industries to explore and adopt advanced technologies such as thin film technology.

"Various initiatives were undertaken directly by the ministry's agency or through research and development fund support such as grants for pre-commercialisation and financial assistance to get the existing related technologies," he said.

Source — Bernama

Video: The Truth About Solar

Watch this clip and learn interesting facts about solar PV, explained in simple terms by ColdFusion:



It's 11 minutes long but you won't get bored, I promise.

Source: coldfusion 

Market for MW-scale PV-related activities to surpass 133 GW worldwide by end-2015

According to GTM's latest report released recently, Megawatt-Scale PV O&M and Asset Management 2015-2020, the total market for megawatt-scale Operation & Maintenance (O&M) and Asset Management (AM) is expected to surpass 133 GW worldwide by the end of 2015.

Megawatt-scale PV refers to installations/activities in access of 1 MW which means residential solar PV and other smaller solar farms are excluded.

The research firm further stated that total market will more than triple by 2020 to exceed 488 GW worldwide, driven predominantly by China, the U.S., India and Japan.


Major vendors. Source: Periodical e-mail updates from GreentechMedia

The research finding provides global and country-specific competitive landscape analysis, market sizing and forecasts, current and emerging trends and strategies, as well as service scope and price levels for a variety of plant sizes.

It also provides profile of 57 vendors in the O&M and Asset Management space including services offered, in/out-sourcing policies and fleet size by key country.

Comprehensive geographical coverage 

With every major markets being covered in the research, there's a fair chance that you would get an informed decision in your renewable energy projects, in particular solar PV. The report is available for a fee but for the industry players, this should be considered as small cost to doing business. As for the rest of us readers, we'll have to be contented with just the bits and pieces of information released by GTM later (probably, with no time frame).

Markets covered includes Brazil, Canada, Chile, China, France, Germany, India, Italy, Japan, Mexico, South Africa, Spain, Thailand, United Kingdom, and United States.

The Green Mechanics: If I were to be a member of the management team of SEDA Malaysia, I would strongly recommend that we get a copy of the report.

Source: GTM

Global solar PV market hit cumulative 177GW in 2014

Worldwide installations of solar PV are now producing more than 1% of the global electricity use.

According to greentechsolar, by the end of 2014, cumulative installed capacity for solar PV globally amount to at least 177 GW, up from nearly 140 GW in 2013. This is about 10 times more than the installed capacity in 2008.


Source: International Energy Agency's Photovoltaic Power Systems Programme, IEA PVPS

Global solar PV market continues to grow, but last year's performance didn't quite meet expectations. Preliminary data shows that global PV market saw only a modest increase year over year - from an increase of  37.6GW in 2013 to 38.7GW in 2014.

The market in Europe decreased significantly, while in China, the solar PV market saw significant growth although it did not hit the 14GW target some believed it could have reached.


Modest global PV expansion

This year, China's National Energy Administration announced the country plans to install as much as 17.8GW of solar projects in 2015. The world's largest polluter has also put a new policy focus on distributed solar and innovative financing tools to help meet its goals.

Top three in terms of new solar installations (2014):

• China - 10.9 GW
• Japan - 9.7 GW
• United States - 6.2 GW

There are 19 countries that currently produce at least 1% of their electricity from solar PV, with top spots helmed by:

• Italy - 7.92%
• Greece - 7.6%
• Germany- 7.0%

Note: The IEA calculated production figures based on each country's cumulative PV capacity at the end of 2014, project siting and average weather conditions.

PV development in 2014 remained concentrated in 40 countries. Source: IEA PVPS


The Green Mechanics: All these reports and signs indicate the global PV market will continue on an upward trend for years to come. Exactly how much growth and where it will take place is less certain though. Still, this should be an encouraging piece of report.

- Reference: Greentech Media 

The 5 countries that lead the way toward 100% Renewable Energy

Last year (2014) was an exciting year for renewable energy. For example, in December last year, wind turbines alone provided around 1,279 MWh of electricity to the Scottish national grid, enough to supply the electrical needs of 3.96 million homes (164% of households).

Wind turbines. Photo credit: Creative Commons


According to Bloomberg New Energy Finance’s latest energy investment report, China led as the world’s largest investor in renewables, with the U.S. coming in second place.

Worldwide, around 100 gigawatts (GW) of solar and wind power capacity were built in 2014—up from 74 GW in 2013—and nearly during every month the headlines were filled with record generation in cities and countries across the world.


Here is the list of FIVE records that were broken in 2014:-

1. Denmark sets world record for wind

Denmark set a new world record for wind production in 2014, getting 39.1% of its overall electricity from the clean energy source.

The latest figures put the country well on track to meet its 2020 goal of getting 50% of its power from renewables.

Denmark has long been a pioneer in wind power, having installed its first turbines in the mid-1970s, and has even more ambitious aims in sight, including a 100% renewable country by 2050. Last year, onshore wind was also declared the cheapest form of energy in the country.


2. UK wind power smashes annual records

In the UK, wind power also smashed records in 2014, as generation rose 15% from 24.5 TWh hours to 28.1 TWh. The country now generates enough wind energy to supply the needs of more than 6.7 million UK households.

A combination of grid-connected wind farms and standalone turbines produced 9.3% of the UK’s electricity demand in 2014, up from 7.8% in 2013 and the latest data follows a string of wind power records announced in the second half of last year.


3. Renewables provide biggest contribution to Germany’s electricity

Renewable energy was the biggest contributor to Germany’s electricity supply in 2014, with nearly 26% of the country’s power generation coming from clean sources.

Electricity output from renewables has grown eightfold in Germany since 1990, and the latest data further highlights the dramatic shift towards clean energy taking place in Europe’s largest economy.


4. Scotland sees “massive year” for renewables

In December last year, wind turbines alone provided around 1,279 MWh of electricity to the national gird, enough to supply the electrical needs of 164% of Scottish households, or 3.96 million homes.

The latest figures further highlight the record year seen for renewables in Scotland, with wind turbines providing an average 746,510 MWh each month—enough to supply 98% of Scottish households electricity needs. Over 6 months of the year, wind generated enough power to supply more than 100% of Scottish households.


5. Ireland hits new record for wind energy

According to figures record by EirGrid on Jan. 7, 2015, wind energy had created 1,942 MW of energy, enough to power more than 1.26 million homes.

And while we are still only a week into 2015, this announcement marked the second time this year the country has seen this record broken. Windy conditions in Ireland meant the country saw not one but two wind energy records set already this year.


The Green Mechanics: Renewable resources as the main sources of energy isn't too far away from matching the finite sources.

Should be good for us.

Source: REW Magazine

New world record for PV module output: 324.5W by Trina Solar

Typical multi-crystalline PV module (not Trina's) is shown on the left-most.

Trina Solar - the second largest manufacturer of solar panels (behind Yingli Solar) - has set a new world record for power output from a high efficiency multi-crystalline silicon PV module.

Called Honey Plus, the multi-crystalline silicon PV module reached a new power output record of 324.5Wp. This has been independently certified by TUV Rheinland. 

Currently in pilot production, the multi-crystalline silicon module is composed of 60 high-efficiency Honey Plus multi-crystalline silicon cells (156×156mm2), including back surface passivation and local back surface field.

Recently, the Company set a new record for its Honey Plus p-type PERC cell which reached an efficiency of 20.76% - independently confirmed by Fraunhofer ISE CalLab in Germany. 

Trina Solar has set 4 new world records in 2014 for p-type PERC cells and modules, namely:

• new efficiency record for large-area (156×156 mm2) p-type silicon substrates (21.40%) for mono-crystalline cells
• new efficiency record for large-area (156×156 mm2) p-type silicon substrates (20.76%) for multi-crystalline cells
• new peak power output records for commercial PV modules (335.2Wp) for mono-crystalline cells
• new peak power output records for commercial PV modules (324.5Wp) for multi-crystalline cells.

The Green Mechanics: This could only mean one thing - More power squeezed from those panels on your rooftops.

Source: solarpowerworldonline.com

Japan toughens rules for Renewable Energy incentive payments

Just 2 years after introducing Renewable Energy incentive program, Japan is now setting stricter rules for production and sales of energy generated from renewable sources.

Reason: To speed up development of projects and ensure stable power supply.

Windmills on the tip of the Nemuro Peninsula in eastern Hokkaido. Image from The Japan Times

The new renewable rules

As in many other renewable energy projects around the world, similar projects here haven’t started even years after winning approval.

• The new rules allow utilities to strip a renewable energy provider of grid access if they miss the start date.

• The same can happen if they fail to pay for access within a month of signing a contract.

• The rule allows utilities to reduce or stop intake of renewable energy (wind and solar power) for up to 30 days a year without compensating the suppliers.  Applicable for when supply exceeds demand, this is for producers with capacity of 500 kW and above.

In essence 

Under new rules, it will apply to solar and wind projects of any size — including residential rooftops — according to a separate ministry document. In addition, the maximum period for no compensation will be calculated by hour not daily to better reflect demand and supply.

The measures come after at least five of the country’s utilities began restricting the access of new solar farms to their grids earlier this year and examined how much more clean energy their grids can add.

Grid capacity in Japan is tight and it is said that renewable energy providers will only receive grid access from a utility when they agree not to be compensated for reducing output.

The Green Mechanics: 
It seem that Japan (not only us) is also not bothered to upgrade their grid either. But some say it's more than that; a reader blamed some corrupt interested parties trying to ward off RE emergence:

"This is the corrupt Japanese electricity industry fighting against solar, duh. This is the same industry that has split Japan into two incompatible grids that creates massive overbuilding and interconnect. Nationalize the electricity industry, reorganize it into municipal control of the distribution substations and grids, and let the greater grid ISO, run a fair and open gov regulated market. The distributions substation entities then buy and sell electricity on the great grid market." - B. Donovan, REW Magazine 

Well, in order to have a better idea of what's happening there, one has to examine closer the situation in Japan. We can't read an article from one part of the globe and draw conclusion/comment/opinion.

- Source: Bloomberg via Renewable Energy World 

2014 is another growth year for Solar PV

Despite challenges, renewable energy website, Renewable Energy World believes 2014 is another growth year for solar photovoltaic.


Past 5 years PV industry capacity, production, shipments and inventory. Source: REW.com


Below are some changes that made this a wild year for Solar PV:

• Utilities in Japan have curtailed grid-connections for large installations (an action that utilities in the US state of Hawaii had already taken), and the upcoming end of Japan’s popular FiT has led to lowered expectations for future growth. 


• The government in China’s early 2014 focus on rooftop PV proved unworkable due to inappropriate roof construction. 


• In the U.S. anxiety over upcoming changes to the ITC at the end of 2016 is affecting development of large projects.


• There is continued slowing of markets in Europe including uncertainty over the market in the UK going forward.

Some points to keep in mind as 2014 nears its end:

1. A project that is sold while in development is not a new project announcement and recounting can lead to oversizing current development activity.


2. Solar modules that are acquired by a traditional manufacturer should not be counted as shipped by the acquiring manufacturer. For example, a manufacturer with 2.4-GWp of cell capacity and 3-GWp of module assembly can only be given credit for 2.4 (in a perfect world) of shipments, the other 600-MWp came from someone else.


3. Grid connections and installations are not synonymous. Grid connections can lag installations by months or even a year. The installation comes first; grid connection comes later.

Regional demand shares of the estimated 40.8GWp of solar PV in 2014. Source: REW.com

This year the top markets for PV were China, Japan and the U.S. REW expects the market in China to continue growing strongly in 2014 now that the emphasis on rooftop installations has receded. Japan, despite recent actions by utilities, had strong growth for most of 2014.


The Green Mechanics' two cents:

That 1% regional demand share in South East Asia is about 400MWp and most of the installed capacity is in Thailand. We have quite a good FiT model in Malaysia but the growth pace looks a tad slow. Perhaps a 2% levy for renewable energy fund would help.


Source: Renewable Energy World

Indianapolis Motor Speedway has the world's largest solar PV farm

With installed capacity of 9 MW, no other sporting facility in the world has larger solar farm than Indianapolis Motor Speedway (IMS).

Brazil's World Cup stadiums such as Mane Garrincha and Estádio Governador Magalhães Pinto have PV arrays installed on their rooftops but theirs are smaller in size - up to 2.5 MW. In Europe, Verona’s Bentegodi football stadium is fitted with 1 MW of solar PV module.



The 9-MW solar PV farm at Indianapolis Motor Speedway. The facility was unveiled early July 2014. Image: REW


“In 1909, the Indianapolis Motor Speedway was constructed in part to help advance the automotive industry, which at that time was the new technology of the day. Today, the unused land at the IMS property just east of the race track has been transformed into a solar energy production facility that will provide an alternative source of energy to IPL customers.” - J. Douglas Boles, Indianapolis Motor Speedway president.


About the IMS solar farm

Installation size	:	9 MW
PV module used	:	Over 39,300 pcs
Installer	:	Sunwize Technologies
Generated power	:	To be used first by the sporting facility
		Excess power to be fed back to the power grid, through PPA

TheGreenMechanics: That's Cool! Thumbs up.

What the folks at Indiana Motor Speedway did was utilise the dormant space near the backstretch of the racetrack and turn it into energy farm. I guess, for the guys running the sporting facility, it's a straight forward kind of idea and one that is sensible, doable; it's just a matter of what to decide and when.


Source: Renewable Energy World

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

*  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  * *

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.

2014 FiT quota release announcement delayed

This is one conference I've really wanted to attend. Unfortunately the dates clashed with another pertinent event in Kuala Lumpur, the Asia Water 2014 Conference which is currently ongoing - 19th to 21st March 2014.


The Deputy Minister of KeTTHA and SEDA officials at the 2^nd International Sustainable Energy Summit 2014 in Petaling Jaya.


Earlier this month, SEDA Malaysia announced in its portal that the new quota for its Feed-in Tariff (FiT) for 2014 would be announced during the 2nd International Sustainable Energy Summit, held in Petaling Jaya Selangor few days ago.


Delayed to refine FiT proposal

The announcement of the 2014 quota for its FiT programme for renewable energy would now be expected to be in April, at the earliest. Energy, Green Technology and Water ministry said this is to make some administrative adjustments.

The Malaysian Reserve reported that  a government official said the release of quotas for 12kW and below may be made as early as April but for larger projects exceeding 12kW, these may now be included in the 2015 quota. One reason why quotas for larger projects may be delayed is the amount of time it will take for some amendments to the Renewable Energy (RE) Act 2011 to be gazetted.

New legislation is needed because the threshold defining larger commercial non-individual photovoltaic (PV) projects has been brought down from 72kW to 12kW. These larger projects would need to go through a power system connectivity check by Tenaga Nasional Bhd, that would take at least 6 weeks, which can only be started once the legislation is gazetted.

Solar PV installations under 12kW do not need to undergo the connectivity test.

Some of the amendments proposed for Renewable Energy Acts 2011 are:

• sections that involved the terms and operational requirements
• FiT approval and FiT rates
• recovery of money
• redefining large commercial solar PV projects to include those beyond 12kW
• regulating the solar PV service providers
• inclusion of geothermal sources as a new RE source in the FiT programme

The Green Mechanics' two cents:

Since gazetted in 2011, the Renewable Energy Act has been revised almost annually to accommodate changing needs of the industry, which is good as we are only at an early stage of the implementation of green technology projects.

With the delay in announcement, it is fair to request that this year's roll-out be spread or extended to 2015 to give individuals and non-individual commercial holders of FiT approval sufficient time to complete their projects.

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.

Fueling the growth of Malaysia's solar energy sector

We have learnt and heard on many roadshows and publications what SEDA thinks are the best ways to fuel the growth of the solar PV energy sector in Malaysia. It's mainly by incentivising the industry by implementing the feed-in tariff.

The feed-in tariff (FiT) mechanism works such that individuals and organisations are paid premium price per unit of energy produced from renewable sources.


MPIA Road Map: Snapshot of the presentation slide of MPIA president, Mr. Ahmad Shadzli Abdul Wahab during the "Konvensyen Tenaga Lestari 2013" in Kota Kinabalu back in November last year.

Malaysian Photovoltaic Industry Association, MPIA, on the other hand thinks there are other equally important means of boosting the sector. The Star quoted MPIA as suggesting two further methods:

• Implement net metering and establish utility-scale solar farms outside the FiT programme


• Implement fiscal incentive to make PV systems cheaper

Net metering

In this approach, the solar energy generator uses the power first and feeds the unused power to the grid. This differs from the present FiT scheme where all generated power goes to the grid.

Government is gradually withdrawing gas subsidy until 2015 and electricity prices are foreseen to hike further. Commercial and industrial premises will want to install PV systems to produce energy for their own use. The sector now consumes 70% of our electricity supply - 40,000GWh by commercial premises and 30,000GWh by industrial premises in 2010.

MPIA also suggests the installation of large-scale solar utilities of over 30MW as only such sizeable facilities can divert the current dependence on fossil fuel power plants. Currently, the largest solar farm in the country is of 10MW capacity.

Thailand, on the other hand, already has a 84MW solar farm, located in Lop Buri Province. The 10 billion Baht (US$335 million) solar farm was completed in May 2013.


Fiscal incentives

The association urges for fiscal incentives to make PV systems cheaper, such as expanding the current exemption on import duty and sales tax for solar modules and inverters to all PV system equipment and components.

With these incentives, the industrial and commercial sector will be able to get a return on their investment in under 10 years, noted the association. The tax exemptions will also make installation of PV systems more attractive for holiday chalets and small-scale food processing industries in remote areas, many of which now rely on diesel generators.

No doubt this will encourage more people and businesses to invest in PV systems.


Large scale operators vs. residential installation

MPIA also contended that current tax incentives assist companies but not house-owners. For instance, the waiver on sales tax for solar cells and inverters benefits only operators of big solar installations. It will be tedious for home-owners to fill numerous forms to obtain the waiver.

There is also financial support for companies under the Green Technology Financing Scheme whereby the Government subsidises 2% of the interest on loans taken to finance green projects.

Keen to see more houses with PV systems, the association disagrees with Sustainable Energy Development Authority’s (SEDA, the statutory body that administers the FiT scheme) current approach of emphasising commercial projects.

"In Germany, 80% of the quota goes to residential but in Malaysia, it goes to commercial set-ups. With a higher quota for residential, more people will get the opportunity to produce solar power. Since the money is from the people, they should be given the chance to install solar panels. More households will benefit instead of just one company.” - Malaysia PV Industry Association

Source: The Star Online


TheGreenMechanics: Recently during a Q&A session with one of the implementers of solar PV systems in Kota Kinabalu, I asked the gentleman if Kumpulan Melaka Berhad (KMB) got their 5MW quota from bidding or was it negotiated with SEDA? KMB is also already eyeing a second solar farm costing RM20 million, which I reckon would not be less than 2MW in capacity.

The gentleman answered it was through bidding but I could sense the lack of affirmitiveness in his body language. Maybe it is, but my point is that, we only have so much of quota every year and the big chunk of the cake goes to the commercial/industry players.

Malaysia's first geothermal power plant ready by May 2016

Malaysia’s first geothermal power plant at Apas Kiri, Tawau is expected to deliver 30MW of electricity to the Sabah State Grid in May 2016.

The first news of this venture came to light in 2011 when Tawau Green Energy (TGE) inked a deal with SESB for sale of electricity generated from geothermal for a period of 21 years.

Back in 2011, TGE showed the site of the proposed geothermal power plant in Tawau. Photo: TGE 

The project hit a snag the next year upon claim by Tawau Municipal Councilors that they were not informed/aware of the potentially environment-impacting activities related to the plant setup.

Fast forward to 2014, latest news tells us that drilling operations are now expected to commence at the end of April this year. Also, TGE was reported to have signed a MoU with the University of Auckland on the development of the geothermal energy industry here.


Collaboration with foreign experts

Under the MoU, the two parties agreed to facilitate the provision of the university’s expertise in geothermal training and research. The University of Auckland is one of the leaders for applied research and training in geothermal energy.

The collaboration will pave the way for the setting up of Geothermal Resource Centre (GRC) in Tawau, which would benefit us, among others, by way of:-

• Capacity building for the Malaysian geothermal energy industry


• Providing specialised training in all aspects of geothermal energy including applied geosciences, steamfield design, power plant technology, power plant engineering and design, operations and maintenance, environmental compliance


• Providing a platform for local universities and institutions of higher learning to collaborate with foreign institutions


• Conducting seminars, short courses and other training programmes for Malaysian engineers and scientists keen to involve themselves in this new field of renewable energy


• Encouraging local and foreign universities to collaborate on joint-research activities on the Apas Kiri Geothermal field.

"(We hope that with the setting up of the GRC, Malaysia’s human capital and expertise in the geothermal energy field would be strengthened). This is especially so as we want to promote use of renewable energy and reduce our dependency on fossil fuel. Currently renewable energy accounts for 0.85% of our country’s energy mix and we hope to increase that to 5.5% in the nearest future.”
- Dr. Maximus Ongkili, Minister of Technology, Green Energy  and Water, Malaysia.

It was reported that TGE will engaged the services of Iceland Drilling Company, IDC, for the drilling operations of the proposed Apas Kiri project on a turnkey basis. IDC has good track record both in Iceland and New Zealand.

Delegation from Dr. Maximus' ministry visited New Zealand recently to look at the operations and maintenance of geothermal power plants there. Geothermal currently contribute about 15% of New Zealand’s total energy needs.


TheGreenMechanics: Let's look ahead and get similar arrangements for local universities to get into some sort of MoU with TGE. We could perhaps start with UMS. Afterall this is the only facility of such nature in Malaysia and it would be a waste if transfer of technology is not accelerated.


Source: The Borneo Post

Pakistan solar PV to add 772 MW to national grid

Like Malaysia, solar power is quite new in Pakistan.

But if what had been reported is to materialise, Pakistan is on course to develop 772 MW of solar power over the next two years. This is more than what what we will have in Malaysia over the course of 2 years, although we have much more attractive FIT rates.


Ground-mounted solar PV installation in Pakistan. Image: pv-magazine


Pakistan to add 772 MW of solar power by 2016

Pakistan will add 772 MW of solar power to its national grid by 2016, according to figures released by the country's Alternative Energy Development Board (AEDB).

There are currently 22 individual solar power projects either under construction or at various stages of development across Pakistan, with a number of these projects awaiting an agreement on a national FIT.

NEPRA has now published its final FIT incentives for PV projects between 1 MW and 100 MW. In the north of Pakistan the FIT will be set at $0.18 cents per kWh (about RM0.60) for an initial ten-year period, halving after that time to just $0.09 cents per kWh (about RM0.30) for the next 15 years.

In Pakistan's southern regions, the FIT incentive comes in a little more generously, at $0.19 cents per kWh for the first ten years, but falling to below $0.09 cents per kWh thereafter.


By comparison, Malaysia's FIT rate for solar PV (as of February 2014) are as follows:

• RM0.5440 (about US$0.16) for 21 years - installation size of 10MW to 30MW
• RM1.0411 (about US$0.31) for 21 years - small installations size of up to 4kW

Pakistan is also pursuing a number of renewable energy projects for the country’s national grid, and has pledged its backing to the solar industry and the wind industry – the latter of which has an estimated 150 MW pipeline in the offing.

The country is set to embark on a campaign to promote the installation of residential rooftop PV systems designed for self-consumption.

Source: pv-magazine

Abbreviations:
NEPRA - National Electric Power Regulatory Authority (Pakistan)
AEDB - Alternative Energy Development Board (Pakistan)


The Green Mechanics: We may well be overtaken by Pakistan simply because we are too comfortable with the current cheap, subsidised prices of energy generated from fossil fuels and in the end making RE ventures, particularly solar power, very expensive in relative term.

Australia's solar industry prepares for battle

TheGreenMechanics: This is in Australia but it could well happen in Malaysia when and if the government changes hands. Renewable Energy should be in the agenda of both the government of the day and the opposing party.


Australia's RET currently requires 45,000 GWh of power by 2020 and provides a subsidy to people who install solar systems. Source: Infinite Energy


Australian PM looks set to gut the country's Renewable Energy Target program

Australia's renewable energy sector is feeling increasingly threatened by the government of Prime Minister Tony Abbott.

In a report in UK newspaper The Guardian, opposition Labor Party environment spokesman Mark Butler took Abbott to task. Butler accused the prime minister of having pretended to support the renewables industry before the election but said he was now "launching a full-frontal attack" on the sector.

"The Liberals went to the election saying there was no difference between the parties on renewable energy, but they weren’t being straight with the Australian people because now they are launching a full-frontal attack," Butler said, according to The Guardian.

The Labor environment spokesman said Abbott had taken control of a scheduled review of the country’s Renewable Energy Target (RET), adding that the current ruling coalition may reassess the program due to increases in power prices.

Butler said Labor would continue to oppose the repeal of the country’s carbon tax when parliament resumes this month and added that the party was also preparing "to ramp up a community campaign in support of renewable energy."

The renewable energy sector has become increasingly alarmed at the possibility of the government drastically reducing or even abolishing the RET.

The Australian solar council has already launched a "save solar" campaign out of fear the government review will immobilize the industry by eliminating the target, which requires 45,000 GWh of power to be sourced from renewables by 2020 and provides a subsidy to people who install solar systems.


Source: pv-magazine

Schneider and Areva partner to develop storage technology

This collaboration should spur storage technology growth further!

That way, Richard Branson would not have to wait too long to shift his Necker Island to 100% renewable energy. The wealthy man is currently targetting 75% of power supply in the resort island sourced from wind and solar by 2015.

PVtech reported this week that nuclear and renewable energy technology engineer, Areva has teamed up with renewables energy generator and distributor, Schneider Electric to develop hydrogen fuel cell storage technology.


Areva has used hydrogen fuel cell storage technology since 2011, connecting the Greenenergy Box to a 560kW PV system in Corsica. Image: Wikipedia


Partnership by two energy giants

The deal between Areva and Schneider Electric will see the pair jointly design and propose new storage technology solutions to improve grid security, especially for isolated areas with limited power access.

Areva has agreed to provide its Greenenergy Box – a storage solution using an electrolyzer and fuel cell. The box stores the hydrogen and oxygen from the electrolysis of water when energy demand is low, to compensate for peak demand. Areva has used this technology since 2011, connecting the Greenenergy Box to a 560kW PV system in Corsica. The box will soon also be hooked up to a 35kW system in La Croix Valmer in the south of France.

Schneider is hoping the partnership will assist in its goal of achieving grid parity for renewable energy, reducing power disruption and decreasing grid connection complications.

Areva will benefit from Schneider’s international presence and expertise in utility-scale and grid connected renewable energy projects.


Source: PVtech

Richard Branson shifting Necker Island to 75% wind and solar power

Richard Branson needs no introduction.

But for Malaysians, he would probably be best remembered for donning a skirt and a full face of make-up on AirAsia flight to Malaysia back in May 2013. He did it to honour his Formula 1 bet with Malaysia's F1 team and AirAsia owner Tony Fernandez.

In the renewable energy industry, his name would quickly come up as one of the wealthy men making investment in renewables. Necker Island, the Caribbean Island owned by him, is reported to be shifting to 75% percent renewable energy by the end of 2015.

Necker Island to be powered by 75% renewable energy. Photo: Virgin Hotels Group.

Richard Branson shifting Necker Island to mostly wind and solar power

Virgin Group chairman Richard Branson has struck a deal with NRG Energy to build a system that manages wind, solar and diesel power on the 74-acre island. Electricity on small Caribbean islands is extremely expensive because they must rely on imported oil to power generators.

According to NRG Energy, people on the island are paying 40 to 55 cents per kWh compared to 6 to 20 cents in the US.

By shifting to solar and wind energy his energy costs would be cut by 40%. Switching to 100% renewable was too expensive because of the cost of storing wind and solar energy in batteries, but Branson believes one day, once storage is better, it would be possible to go 100%.

The project is part of the Ten Island Renewable Challenge, in which Caribbean islands will attempt to end their reliance on fossil fuels.

Source: The Washington Post


TheGreenMechanics:

Energy cost for off-grid system such as those on islands is very high. I remember some years ago I was involved in working out a cost to supply power from diesel generators to Sabah's Manukan Island and we failed to convince the resort operator with the cost. I guess the operator is still maintaining its own generator sets, combined with Sabah Parks' own unit.

With cost of solar panel dropping fast, I believe it is high time the resort operator (Sutera Harbour) re-visit its power supply system there. Going renewable could be rewarding.