12 COVER STORY
@ green | July-August , 2022
Prudent and optimum utilisation
SEDA Malaysia explains the deliberate decision behind the FiT programme
Dato ' Hamzah Hussin , CEO SEDA Malaysia .
BY FATIHAH MANAF
SINCE its inception in 2011 , the Malaysian government ’ s Feed-in Tariff ( FiT ) programme has positively impacted the country ’ s Renewable Energy ( RE ) development . In those 11 years , a quota of 1,428MW has been approved for RE sources involving 10,482 projects .
The government introduced the FiT mechanism under the Renewable Energy Act 2011 [ Act 725 ] to establish and implement a unique tariff system that promotes the generation of RE and related matters .
On June 14 , the Ministry of Energy and Natural Resources ( KeTSA ), through the Sustainable Energy Development Authority ( SEDA ) Malaysia , announced the bidding applications for a new FiT quota with a total allocation of 187 Megawatt ( MW ) for non-solar resources in Peninsular Malaysia .
For this new application , 30MW was allocated for biogas , 127MW for small hydropower and 30MW for biomass .
When asked about the rationale behind this specific quota allocation , SEDA Malaysia CEO Dato ’ Hamzah Hussin told @ Green : “ The FiT mechanism is directly related to the Renewable Energy Fund ( RE Fund ) as provided under the Act 725 .
“ Under the FiT mechanism ,
Distribution Licensees ( DLs ) are expected to buy RE generation from the Feed-in Approval Holders ( FiAH ) and seek recovery of money ( ROM ) from the RE Fund .
“ SEDA Malaysia plans and allocates the FiT quota based on prudent and optimum utilisation of the RE fund to ensure the sustainability of all FiT installations and the RE Fund throughout the effective period of the feed-in approval .”
After the FiT ’ s e-bidding process is completed , the successful FiAH are expected to complete the projects in three years for biogas and biomass projects and five years for small hydropower projects .
The biogas and biomass FiAHs that are successful in the 2022 e-bidding process are estimated to commence their operations in 2025 , while small hydropower projects are estimated to be operational in 2027 .
Geothermal potential in Sabah and Perak
In general , the FiT mechanism includes five renewable resources that are recurring and non-depleting indigenous resources or technology , namely solar photovoltaic , biogas , biomass , small hydropower and geothermal .
“ In terms of RE resources availability , Malaysia is strategically located near to the Equator that provides strong solar irradiance in the range of 1,575 – 1,812kWh / m2 throughout the year ,