Advancing Just Energy Transition December 2023 | Page 22

ADVANCING JUST ENERGY TRANSITION

Malaysia ’ s Sustainable Energy Development Prospectus

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Energy supplied to EUC by SPP based on NEDA Rules

Solar Power Producer

Corporate Green Power Programme ( CGPP )

Price payable to SPP based on SMP

Electricity Utility Company

KEY SUSTAINABLE ENERGY PROGRAMMES

Since 2012 , sustainable energy development in Peninsular Malaysia and Sabah has been supported through several main programmes : Feed-in Tariff scheme ( FiT ), Large Scale Solar auction ( LSS ), Net Energy Metering ( NEM ) , Self-consumption ( SELCO ), Corporate Green Power Programme ( CGPP ) and Green Electricity Tariff ( GET ). The current total operational renewable energy capacity in Malaysia is 3,386.58 MW .

1 . Self-Consumption ( SELCO ) The SELCO scheme allows for selfgeneration of electricity through the installation of electrical generators based on renewable sources . Introduced in Malaysia in 2017 , it enables individuals or businesses to produce electricity for their own consumption . Notably , electricity

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Price payable to EUC based on normal tariff rate

Price for Renewable Energy Certificate ( if applicable )

* settlement of the difference between the SMP & the energy price based on terms and conditions in CGPA

Corporate Consumers

generated under SELCO cannot be exported to the grid , and owners do not receive compensation for excess energy . However , users benefit from a streamlined installation process , as power system studies are not required for systems up to 425 kWac .

As of the latest available data , the total installed capacity under SELCO for renewable energy sources in Malaysia is 321.3 MW . Biomass contributes the majority , followed by solar , biogas , and mini-hydro .

2 . Net Energy Metering ( NEM ) The NEM programme was introduced to continue to spur the industry . Currently on its third installation , NEM 3.0 offers three different categories to ensure equal opportunities for every sector in contributing towards reducing their carbon footprint . NEM Rakyat for domestic consumers , NEM GoMEn for government buildings , and NEM NOVA for commercial buildings categories were launched in 2021 and have received a favourable response from the public .

As of December 31 , 2022 , 11,505 projects with an installed capacity of 518.28MW were approved . Eighty-three per cent of the installed capacity was contributed by applications from the NOVA initiative with 430.01MW , followed by NEM Rakyat with 59.68MW and NEM GoMEn with 28.59MW . 46.2 per cent of the approved projects are now fully commissioned , proving the feasibility of the solar project ’ s installation and signalling the shift towards a greener Malaysia .

3 . Large Scale Solar ( LSS ) The introduction of LSS auction in 2016 has resulted in the addition of 857 MW or 56 per cent to the total solar PV installed capacity as of the end of 2020 . LSS is designed to support the uptake of utility-scale solar PV systems with 1-100 MW capacities in Malaysia .

The scheme uses a reverse auction system to award LSS rights based on the lowest bid for off-take prices . The minimum system capacity of LSS plants is 1 MW , while the maximum system