July-August, 2020 | @green
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The excess energy generated can be exported to Tenaga
Nasional Berhad (TNB) on a one-on-one offset basis. Chen
said while the balance of 300MW of NEM 2.0 would be valid
until the end of this year, SEDA would study the subsequent
NEM scheme to further support the PV rooftop market.
SEDA Malaysia runs the NEM scheme that allows
electricity consumers of TNB to install a solar PV system
in their premises.
Chen also said that during this pandemic period, an
extension of time for NEM projects would not be automatic
and NEM applicants were required to submit their request
for extension of time and approval would be granted on a
case-by-case basis.
MIDA’s Zulina Mohamed talked on Tax Incentives for
Green Technology at the Webinar. She said the government
had introduced incentives under the green technology in
the Budget 2014 to encourage companies to utilise green
technology or invest in green equipment for own use or
business purposes.
Under the Budget 2020, the incentives, namely Green
Investment Tax Allowance (GITA) and Green Income Tax
Exemption (GITE), have been extended to end-December
2023 to recipients who met the criteria of green technology
as defined in the National Green Technology Policy.
However, at this juncture, MIDA has yet to receive the
finalized revised guidelines for the extension of GITA and
GITE, including the new GITE provision for companies
undertaking solar leasing activities.
Meanwhile, MPIA’s Lionel Yap shared his views on the
local solar PV industry when presenting his talk on Malaysia
Solar PV Rooftop Market. Based on the large untapped
areas of rooftops for solar PV installations in Malaysia, Yap
was optimistic with the prospects of the industry.
Specifically, Yap provided illustrations of payback
of three to over five years for PV rooftop projects within
the Northern Klang Valley region with GITA support for
electricity consumers of tariff commercial and industrial
sectors.
He noted the nation’s 20 per cent renewable energy
target in the electricity mix by 2025 focuses on increasing
solar energy generation capacity and this would continue
to create new business opportunities for big companies,
SMEs, microbusiness and households.
Nirinder gave a talk on Supply Agreement with Renewable
Energy (SARE) at the Webinar. SARE is a tripartite
Wei-nee Chen
Zulina Mohamed
Sanjayan Velautham
Lionel Yap
Nirinder Singh Johl
contract between prosumer, investor/asset owner and
TNB that reduces the counterparty risk of the investor/
asset owner.
SARE makes green energy accessible to businesses by
facilitating investors to fund and own on-site renewable
energy generation on prosumers premise. The SARE has
four options depending on financing configuration and
ownership of the building to be installed with PV.
The final speaker at the Webinar was Hussam. He
shared the bank’s available financing solution for solar PV
investments.
Hussam said CIMB was moving forward with sustainability
and the bank had always emphasised value-creation
which required a delicate balancing of the long-term interests
of its people, planet and profitability.
He noted the bank had introduced an SME renewable
energy financing to assist the SMEs in fulfilling their
financing needs to install rooftop solar PVs. Some of the
features of the solar financing include term loan of up to 10
years, financing limit of up to 100 per cent of PV system cost
capped at a maximum of RM1 million and no collateral is
required as security, save for joint and several guarantees.
So what has Covid-19 taught us?
Sanjayan summed up his thoughts towards the end of his
keynote speech: “Just like the pandemic curve, climate
change has no respect for borders. It is colour-blind and has
no regards on which social status we belong to. To this end,
we must learn and we must act to flatten the climate curve.”
In this regard, the inaugural webinar by SEDA Malaysia
shed invaluable insights that investment in the sun was one
such measure to flatten the climate curve. – @green
Table 1: Summary of trading during alpha phase
• Existing tariff more than RM0.50 per kWh
• RMR meter customer
Since the excess energy needs to be transferred between
the prosumer and consumer, interim system access charge
RM0.063 per kWh was approved by the Energy Commission
for the purpose of this pilot run utilising the grid.
Furthermore, any untraded energy will be bought by TNB
at zero cost.
Therefore, it is important to find the prosumers and consumers
with matching energy generations and demands
Other important components to run the P2P energy trading
pilot are the energy meter with remote meter reading
(RMR) capabilities and billing system. TNB, as a partner
for this pilot Project, has provided both requirements and
strong support towards this project.
Under this pilot project, Power Ledger, an Australian
company, has provided the P2P energy trading platform
with the blockchain technologies to process the meter
data and trading logic. After four months of pilot run under
the alpha phase, the outcome of the trading between the
prosumers and consumers can be seen in Table 1.
Moving forward, the pilot project will start the beta
phase and look into matters relating to commercial
implementation of the P2P energy trading in Malaysia.
Beta phase is very important since it will conduct almost
actual processes for the P2P energy trading.
Several areas are aimed to be tested during the beta such
Exhibit 1: Trading dashboard
of a prosumer
This slide is a snapshot
of the P2P energy trading
platform of a prosumer in
November last year. The
chart shows the amount of
energy sold by a prosumer,
the green bar indicates
sale to P2P while the grey
portion indicates spillage.
This chart is quite good as
it shows that most of the
excess solar electricity is
sold to P2P and only a little
is spilled to the grid.
as business model, trading logics, regulations, settlement
process, risks and challenges.
Covid-19
As a result of the recent COVID-19 pandemic outbreak,
the beta run has been postponed so as to prevent financial
losses by the prosumers due to possible high volume of
untraded electricity as a result of low economic activities
from both the prosumers and consumers.
Subsequently the alpha run will continue until such
time when the economic activities in the country resume
to normal before beta run will commence. – @green
References
1. https://irena.org/-/media/Files/IRENA/Agency/Topics/
Innovation-and-Technology/IRENA_Landscape_Solution_08.pdf?la=en&hash=90FF077D226D6985A0C0F0
0012E94E8FD745414D
2. https://www.infiniteenergy.com.au/
peer-to-peer-energy-trading/
3. SEDA Malaysia Alpha report