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.

SEDA responded to concerns raised on the revised 1.6% surcharge

This is an excerpt of the press statement by Sustainable Energy Development Authority (SEDA) Malaysia in respond to the concerns raised by YB Mr. Lim Guan Eng, the Chief Minister of Penang and YB Dr Ong Kian Ming, a Member of Parliament for Serdang, on the achievements by SEDA Malaysia to justify the revision of the surcharge on electricity bills for renewable energy (RE) fund from 1.0% to 1.6%.


Beginning January 1 next year, consumers in Peninsula Malaysia, Sabah and Labuan will be levied with 1.6% surcharge in their electricity bills.


Effective date of the revised rate

The revised surcharge is effective from 1st January 2014 and affects electricity consumers of Tenaga Nasional Berhad (TNB) and Sabah Electricity Sdn Bhd (SESB); however domestic consumers with 300 kWh and less of electricity usage per month are exempted from such contribution.


Achievement and milestones

According to the CEO of SEDA Malaysia Datin Badriyah Abdul Malek, since the Feed-in Tariff (FiT) mechanism was implemented on the 1st December 2011, 2,686 applications have been approved out of which 89.1% of the applications were for solar photovoltaic (PV) for the individuals, 8.9% for solar PV for non-individuals and 2% collectively for biomass, biogas, and small hydro.

SEDA Malaysia has approved RE capacity of 482 MW (expected to achieve commercial operation by 2015), comprising:

Solar PV      - 40.2%
Biomass      - 27.7%
Small hydro  - 27.2%
Biogas         - 4.9%

Under the previous Small Renewable Energy Power (SREP) programme which was launched on 11th May 2001, only 61.2 MW of RE capacity was connected to the grid as at the end of 2010. Hence, the FiT mechanism which has been operational for only 2 years has achieved more RE capacity than the previous SREP which spanned nearly a decade.


Justification

By 2014, the projected job creation for the RE industry under the FiT programme is 11,412 whilst the total investment on the approved RE capacity is estimated to be RM 7.3 billion. Citing the solar PV industry as an example, in 2006, there were only 8 PV service providers in the country providing grid connected PV services. Today, more than 100 PV service providers have emerged in Peninsular Malaysia alone. With the opening of the FiT to Sabah and FT Labuan, SEDA expects the solar PV service providers to grow in numbers in the coming years.

The RE targets meted out under the National RE Policy and Action Plan was on the basis of collection of 2% surcharge imposed on electricity bills. SEDA said that for the past 2 years, only 1% surcharge was collected and without a revision of the surcharge, the RE industry and market growth in the country under the FiT will come to a grinding halt.


The Green Mechanics' 2 cents:

So, the RE targets in the National RE Policy was based on collection of 2% surcharge imposed on electricity bills? Why then the consumers alone are made to shoulder the burden? I have said my piece of mind before and I will say it again:-

The current 1% surcharge is correct and sufficient. The government just need to top it up with another 1% to make the endeavour a joint participation by both the government and the public. If SEDA revise the rate to 1.6%, the government should match it with 1.6%.

Furthermore, SEDA was not transparent (or perhaps overlooked) in giving out facts and figures in its press statement, especially the revolving fund size and the the projected amount it needed to keep the RE industry going. If I was asked to donate to certain organisation, I'd need to know where my money is going, and how much money is already in the organisation's coffer.

Would you not ask questions if your brother asks for certain amount of money, even if you could afford it?

Useful information from the recent SEDA Malaysia Open Day

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

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

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

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

b) Issue pertaining to additional bonus rate in the FiT

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

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

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

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

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

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

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

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

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

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

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


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

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


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

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.

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.

Solar PV quota of over 9 MW fully allocated within 15 minutes after quota re-opens

Last week, SEDA Malaysia released PV quota of 9MW from previously submitted applications made on 2^nd April 2013 which were unsuccessful.

Summary:

Total quota                        : 9 MW
Total allocated                  : 15.2046 MW
Reason for 'over allocation'    : Previously unsuccessful, & many applicant applied for larger PV capacities

Quota opened                    : 23^rd May 2013, noon
Quota fully allocated         : Within 15 minutes after opening
Total no. of applications    : 70
Application success rate    : Slightly over 50% (that's a very high failure rate!)


Note: The high number of rejection of application (unsuccessful applicant) is due to poor submission quality. In other words, online applications submitted without fulfilling the requirement by SEDA.

The Green Mechanics:
It is hoped that SEDA Malaysia will conduct more trainings, workshops, and briefing on the potentials of Solar PV and the procedure for correct submissions. SEDA must conduct these free-of-charge and not collecting fees.

There should be fund allocation for 'marketing the idea', training, nationwide campaign and awareness, and other promotional activities. That is why there is 1% levy on heavy energy users.

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FEED-IN TARIFF: SEDA MALAYSIA RELEASED SOLAR PHOTOVOLTAIC QUOTA OF PREVIOUSLY UNSUCCESSFUL APPLICATIONS

Putrajaya, Thursday (23rd May 2013): The Sustainable Energy Development Authority Malaysia (SEDA Malaysia) today at 12 noon released just over 9 MW of solar photovoltaic (PV) quota. This quota was from previously submitted solar PV feed-in approval (FiA) applications made on the 2nd April 2013 which were unsuccessful. The 9 MW quota was fully allocated within 15 minutes after opening of quota.

Although a series of workshop had been organized to brief the PV service providers and potential PV investors, Puan Badriyah noted that the submission quality was rather poor resulting in nearly 50% unsuccessful applications.

According to the CEO of SEDA Malaysia, Puan Badriyah Abdul Malek, the total number of applicants for this opening of solar PV quota was 70 and the total capacity allocated was 15.2046 MW.

“The seemingly additional capacity from 9 MW to 15.2046 MW was because most applicants apply for larger PV capacities which had lower FiT rates and some were ground-mounted applications meaning a lower FiT rate because bonus rates for building applications would not be applicable,” said Badriyah.

“We hope this time round, the PV service providers and their clients would be more vigilant in providing quality submissions with full compliance to the requirements,” said Badriyah. After all, it is SEDA Malaysia’s vision to see renewable energy grow in meaningful scale and Renewable Energy (RE) Fund is expended in impactful ways.

The RE Fund was established through the enforcement of the Renewable Energy Act 2011 and is an important part of the FiT mechanism approved by the Government to spear head the growth of the renewable energy in the country.

The main function of the RE Fund is to pay the tariff for electricity generated from renewable sources by renewable energy producers and individuals under the FiT mechanism. It is established from the collection of 1% additional charge on all electricity consumers effective since 1st December 2011 although domestic consumers that have electricity bills of not more than RM77 (or consumed not more than 300 kWh) per month will be exempted from contributing to the RE Fund.

The fund is managed and administered by SEDA Malaysia. On this note, the CEO of SEDA Malaysia assures that the fund is managed with prudence, integrity, transparency, and full accountability. These are the core values embraced by SEDA Malaysia.


Source: Press Release by SEDA Malaysia

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.