Bosch stops RM2.2 billion solar project in Penang

Back in 2011, a global player in the solar energy industry, Sun Bear's plan to build a RM5.2billion solar glass plant in KKIP, Sabah didn't materialise due to power supply issue. Insufficient power supply to be exact.

Recently, Germany's Bosch announced it was shelving a plan to build a RM2.2 billion solar facility in Batu Kawan, Penang - for a different reason.

One of Bosch facilities in Penang. motortrader pix.

Bosch shelves RM2.2b investment in Penang

TheSunDaily, March 26

Bosch Solar Energy Sdn Bhd will quit a proposed RM2.2 billion investment to build a new solar facility in Batu Kawan as part of a decision by its parent to discontinue their global crystalline photovoltaic (PV) business.

In a statement last Friday Germany's Robert Bosch GmbH said it will stop manufacturing of ingots, wafers, cells, and modules at the beginning of 2014 and as far as possible, individual units are to be sold quickly. It said that its module plant in Vénissieux, France, is to be sold, while plans to construct a manufacturing facility in Malaysia will end.

In December 2011, after an extensive global site selection, Bosch purchased an industrial site in Batu Kawan.

They had planned to start construction of the new facility in Q1, 2012 and start operations by early 2013. These plans however did not take off but Bosch had paid the land purchase according to schedule to reflect its commitment to the project.

Early 2012 Bosch announced that due to global overcapacity, price declines and major shakeouts in the PV industry the project in Batu Kawan will be delayed.

"Despite extensive measures to reduce manufacturing cost over the past year, we were unable to offset the drop in prices, which was as much as 40%," Bosch Solar Energy AG supervisory board chairman Dr Stefan Hartung said in a statement, adding that losses for the solar division amounted to €1billion (RM4.04billion) last year.

In a separate statement, InvestPenang chairman Datuk Simon Wong said the state government's investment arm has noted the decision to stop the manufacturing of solar energy parts. He said the decision was unavoidable in view of the current state of the global PV industry.


TheGreenMechanics:
Hopefully, it is not the end of the road yet - at least in the context of FDI in Penang - as Business Times reported an industry source as saying "Bosch have conveyed to the state investment authorities that it is committed to the assets it possess in Penang and will need to rejig their plans."

Malaysian household income hits RM5,000

The average monthly income of Malaysian households rose from RM4,025 in 2009 to RM5,000 in 2012, an increase of 7.2% annually. This is according to the 2012 Household Income Survey.

Household income in 2012: RM5,000 (US$1,611). Daily Express, March 28

Kuala Lumpur leads with the highest growth of 14.9% from RM5,488 in 2009 to RM8,586 (US$2,770) in 2012. But Putrajaya took the throne with zero-poverty status last year.

Perlis, Terengganu and Sabah are among the low-income states. I wonder where Kelantan stands in the table.

Average Malaysian household income in 2009 was RM4,025 (US$1,300)

TheGreenMechanics' two cents:

The overall incidence of poverty last year was 1.7% which is below the 2% target by 2015. That's good, but in Sabah the poverty incidence is still at a whooping 8.1% (down from 19.7% in 2009).

The statisticians tell us that Sabah emerged as the best performing state in poverty eradication with its poverty rate. But almost every other states are below 2% and statistics do not tell us the absolute numbers. We have the most number of poor houshold. A 8.1% poverty incidence means that we have more than 250,000 people that are categorised as poor.


Average monthly Malaysian household income hits RM5,000
As reported in Borneo Post, March 27.
The 2012 Household Income Survey found the average monthly income of Malaysian households rising from RM4,025 in 2009 to RM5,000 in 2012, an increase of 7.2% annually.

In announcing the statistics here today, Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop said the urban household monthly income increased at a rate of 6.6% a year from RM4,705 in 2009 to RM5,742 last year, while the rural household monthly income rose 6.4% annually from RM2,545 to RM3,080.

"The significant income rise was achieved with the federal government's efforts in ensuring continuous, stable and strong growth in the economy. The impact was via widespread increase in economic opportunities which generated employment with business and industrial development in various economic sectors," he said.

Nor Mohamed said all states also recorded better average monthly household incomes with Kuala Lumpur leading with the highest growth of 14.9% from RM5,488 to RM8,586.

He said this was followed by Labuan with 12% from RM4,407 to RM6,317, Perlis with 10.1% from RM2,617 to RM3,538, Terengganu 9.1% from RM3,017 to RM3,967, and Negeri Sembilan and Sabah from RM3,540 to RM4,576 and from RM3,102 to RM4,013 respectively. On the ethnic breakdown, Indians recorded the highest increase in monthly household income at 9% from RM3,999 to RM5,233, followed by the Chinese at 8% from RM5,011 to RM6,366 and Bumiputeras, 6.9% from RM3,624 to RM4,457.

There was also a significant reduction in the overall incidence of poverty from 3.8% in 2009 to 1.7% last year, with the total number of household poor plunging 52.7% from 228,400 to 108,000 in the same period.

He said the overall incidence of poverty in the urban areas contracted from 1.7% to 1% while the rural area rate was slashed to 3.4% from 8.4%.

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