ADVANCING JUST ENERGY TRANSITION
Malaysia ’ s Sustainable Energy Development Prospectus
How Net Energy Metering Works ?
NEM RAKYAT , NEM GOMEN & NOVA Category A
Any excess energy produced in a month which is not consumed by the NEM Consumer may be exported via the Supply System to the Distribution Licensee
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Value of the exported energy shall be credited to the account of the NEM Consumer to be used to offset the bill payment for the next Billing Period .
Any excess energy produced in a month which is not consumed by the NEM Consumer may be exported via the Supply System to the Distribution Licensee
NOVA Category B
Value of the exported energy shallbe credited to the account of such Designated Premises to be used to offset the bill payment for the next billing period .
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23 capacity has varied depending on the auction tranche , ranging from 30 MW to 100 MW . As a result of the reverse auction system , competition between developers has pushed off-take solar prices down by 13 per cent between 2016 and 2017 . Solar prices may soon reach grid parity or even lower levels if this trend continues .
Before LSS auctions , 250 MW of LSS projects were awarded through a fasttrack mechanism .
As of the third quarter of 2023 , Malaysia has awarded a total capacity of 2,445.372 MW for LSS projects . The operational capacity stands at 1,492.122 MW , with an additional 953.25 MW in progress , reaching an overall completion rate of 61 per cent .
Since 2016 , Malaysia has conducted four LSS auctions :
• LSS 1 was held in 2016 for 371 MW , with the lowest bid submitted at MYR 0.39 / kWh69 ;
• LSS 2 was held in 2017 for 526 MW , with the lowest bid submitted at MYR 0.34 / kWh , a 13 per cent reduction from LSS 1 ;
• LSS 3 was held in 2019 for 490.88 MW , with the lowest bid submitted at MYR 0.17 / kWh , a 50 per cent reduction from LSS 270 ; and
• LSS 4 was held in 2020 for about 1,000MW with the lowest bid at MYR 0.1399 / kWh , a 18 per cent reduction from LSS 3 .
4 . Feed-in Tariff scheme ( FiT ) The FiT scheme was introduced on December 1 , 2011 , to boost RE uptake by ensuring that Distribution Licensees ( DLs ), such as TNB , purchase electricity produced from renewable resources at a special rate for a fixed period . The FiT mechanism was initially available for all the primary RE resources ( biomass , biogas , small hydro , and solar PV ). Due to the rapidly decreasing costs , new mechanisms , such as LSS auctions , NEM and SELCO , have been introduced , replacing the FiT mechanism for solar PV68 .
As of 2022 , 1,463.06MW was approved under the FiT mechanism , which equals 10,505 projects for solar , biogas , biomass , and small hydropower resources . With its positive impact in developing the sustainable energy market and reducing the carbon footprint in the electricity sector , the Government continues to open more quotas for biogas , biomass , and small hydropower resources with 187.00MW in 2022 via e-Bidding . SEDA Malaysia received 68 applications and has approved 32 projects equivalent to 111.407MW in November 2022 .
5 . Corporate Green Power Programme
( CGPP ) Corporate Green Power Programme ( CGPP ) is an initiative by the Government to provide opportunity for business entities to participate in the promotion and use of renewable energy in their business operation . The programme supports the growing