JULY-AUGUST , 2023 | @ green
COLUMN
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Only the solar PV capacity installed matched the approved capacity , while the installed capacities for the biomass , biogas and small hydropower plants were way below the approved capacities .
Yet it still projects similar and even higher RE capacities to be developed during its time window up to 2035 , especially for the biomass , biogas and small hydro components , as shown below .
GEOTHERMAL RESOURCE AVAILABILITY
The solar PV and large hydro ( mainly in Sarawak ) capacities are encouraging ( though perhaps not fully realisable ). The capacities for “ bioenergy ” comprising biomass , biogas and solid waste ( MSW ) and small hydro appear to be unrealistic ( particularly for small hydro in peninsula Malaysia ).
Moreover , it is surprising to see the inclusion of “ geothermal resource availability ” of 0.23 GW when the initially approved 30 MW project at Tawau ( Tawau Green Energy ) was abandoned ( after it was initiated ) even before the MYRER was completed .
In a previous column , I mentioned : “ Despite SEDA ’ s efforts , the actual development was far less than hoped for , particularly for the biomass , biogas and
mini-hydro segments ”.
Let us consider some possible reasons for the dismal performance of RE development from indigenous resources and how to “ dismantle ” the hurdles to improve the utilisation of these resources to enhance the share of these RE-generating capacities in the national grid power system fuel mix .
The RE Act of 2011 incorporated the provision of attractive FiT ( Feed-in Tariffs ) for the known available RE resources and technologies in Malaysia in 2011 . The relatively attractive FiT rates were intended to be adequate to make the desired RE projects economically viable .
The rapid price reductions for solar PV systems ( Capex ) made it unnecessary to continue with the lucrative FiT rates for that technology by 2017 . In addition , the more diverse options for the PV capacity developments over the years , such as NEM ( Net Energy Metering ), SELCO ( Self Consumption RE ), LSS ( Large Scale Solar ), have all contributed to the explosive increase in solar PV capacity connected to the national grid .
Unfortunately , the exact cost ( Capex ) reductions did not occur for the other indigenous RE technologies . Hence , besides the early adopters of bioenergy developers , the escalating commodity costs for such projects made them unattractive for potential developers , particularly land availability , State administration approvals , licensing requirements , financing
options , feedstock availability and price , etc .
COMPETITIVE BIDDING
SEDA changed the FiT mechanism to competitive e-bidding by prospective bioenergy and small hydro developers , as the Suruhanjaya Tenaga ( ST ) had done for the LSS developers . This was done to “... optimise the utilisation of the RE Fund .” as shown below .
It resulted in the bid tariffs being well below the original FiT rates established as early as 2011 . These tariff rates appear to be even lower than the cost of electricity generated by coal-fired power plants .
SEDA should address the issues raised above and perhaps revise the current version of the MYRER to reflect a more realistic situation of Malaysia ’ s intentions to accelerate the development and exploitation of indigenous bioenergy and small hydropower projects . It will help Malaysia ’ s efforts to achieve Net Zero Emissions by 2050 , a commitment repeated on many occasions . – @ Green
Declaration : The writer was a member of a competing group of consultants that bid for the tender for RETR ( Renewable Energy Transition Roadmap ), renamed MYRER .