NEM 3.0 was launched in 2020 with three categories : NEM Rakyat , NEM GoMEn and NOVA . This moved the NEM programme forward with 294.28MW of the NEM 3.0 quota approved by December last year .”
THE SUSTAINABLE Energy Development Authority ( SEDA ) Malaysia has contributed significantly to the country ’ s energy transition and renewable energy growth since its inauguration a little over 10 years ago .
SEDA celebrated its 10th anniversary in September last year , SEDA is a statutory body formed under the Sustainable Energy Development Authority Act 2011 [ Act 726 ] to administer and manage the implementation of the Feed-in-Tariff ( FiT ) mechanism , which is mandated under the Renewable Energy Act 2011 [ Act 725 ].
As a result of the establishment of SEDA and the successful deployment of the FiT , the country witnessed a breakthrough in driving the share of renewable energy in the national power mix .
From a humble cumulative installed RE capacity of 53MW as of the end of the 11th Malaysia Plan , by the end of December 2020 , the cumulative RE capacity had reached 2,800 MW , or 8,450 MW , including all RE resources .
This achievement was made possible by introducing additional initiatives since its establishment in 2011 , such as the Net-Energy Metering in 2016 and the Renewable Energy Certificate ( RECs ) market in 2018 .
According to the Authority , their newly launched Malaysia Renewable Energy Roadmap ( MyRER 2035 ) aspires to attract RM19.93 billion worth of investments and generate 28,416 jobs by 2025 .
SEDA ’ s leadership in driving energy transition includes promoting energy efficiency via SAVE and GTALCC .
Feed-in-Tariff ( FiT ) mechanism
FiT gives certified Feed-in Approval Holders an opportunity to sell or export energy to the national power grid at a recommended rate for a set period . Benefits such as the generation tariff and export tariff payments are also available for these energy producers .
The sustainable energy resources eligible for FiT were biogas , biomass , small hydro , and solar PV during its formative years . Due to its efficiency and effectiveness , the scheme is dubbed the most widely adopted renewable energy policy globally . There were 596.71MW of FiT projects in operation as of December last year .
After receiving an overwhelming
response from stakeholders , particularly the solar power industry , for its FiT mechanism scheme , SEDA implemented the Net Energy Metering ( NEM ) programme five years later .
Net Energy Metering ( NEM ) programme
The NEM programme began in November 2016 , allowing building owners to consume electricity generated by solar PV systems installed on-site .
Any excess energy generated by the owners could be exported and sold to distribution licensees like Tenaga Nasional Bhd and Sabah Electricity Sdn Bhd at the prevailing displaced cost set by the Energy Commission .
Malaysians were also allowed to apply and install solar PV systems on the rooftops of their homes , office buildings or
factories . However , unlike industry players , the applicants did not receive cash for the excess electricity generated . Instead , the applicants were able to enjoy lower electricity costs .
The scheme , therefore , was part of energy efficiency and cost-effective measures since it reduced the use of imported electricity from utility companies .
NEM 2.0 was launched in 2019 after the government agreed to reimburse excess solar electricity on a one-to-one offset instead of the displaced cost . It received an overwhelming response from industry players .
Under this scheme , the total renewable energy capacity approved in 2019 was almost four times higher than that approved from 2016 to 2018 .
NEM 3.0 was launched in 2020 with three categories : NEM Rakyat , NEM GoMEn and NOVA . This moved the NEM programme forward with 294.28MW of the NEM 3.0 quota approved by December last year .
Energy efficiency projects
SEDA also led two government-mandated energy efficiency projects in its early years , namely the Government Lead by Example ( GLBE ) and the Sustainability Achieved via Energy Efficiency ( SAVE ).
Through GLBE , SEDA successfully implemented energy-saving projects in 105 government-owned buildings .
SEDA launched the SAVE programme in July 2011 to encourage the sale and use of energy-efficient appliances in business