@ green | May-June , 2022

Government offers 187MW new quota for FiT programme

BY FATIHAH MANAF

Recently , the Ministry of Energy and Natural Resources ( KeTSA ), through the Sustainable Energy Development Authority ( SEDA ) Malaysia , opened bidding applications for a new FiT quota of 187Megawatt ( MW ) for biogas , small hydropower and biomass resources in

The new FiT quota offering is expected to generate RM1.8 billion investments and create 550 jobs in the RE industry .

THE FEED-IN Tariff mechanism obliges energy utilities to buy renewable energy from producers at a mandated price . By guaranteeing access to the grid and setting a favourable price per unit of power , the mechanism ensures that renewable energy is a sound long-term investment for companies , industries , and individuals , thereby creating a strong economic incentive for investing in renewable energy . Among the benefits of the FiT Mechanism are as follows :

• Reduce CO2 emissions by replacing fossil fuel-based power production with clean , renewable energy sources .

• Create jobs ; for example , in 2006 , the German renewables industry employed around 234,000 people . Almost 60 per cent of them were employed as a direct result of the German FiT Law .

• Help secure domestic energy supply , enabling countries to reduce their reliance on imported fossil fuels .

• Guarantee investment security for renewable energy investors .

• Drive technological innovation .

• Provide fair market conditions for renewables ; without this , renewables would be unable to compete fairly with heavily subsidised conventional energy .

• It is cost-effective for the public to generate their own clean electricity .

• It returns the control to generate electricity for the people . Implementing FiT in Malaysia will enable the emergence of new businesses , job opportunities , and new growth areas . Thus , it will pave the path for Malaysia to become the leading country in this region for green technologies and low carbon economic growth .

Biogas plant in a field .

Peninsular Malaysia .

“ This quota includes 30MW allocated for biogas , 127MW for small hydropower and 30MW for biomass . All these quotas can be applied by interested parties through online bidding ( e-bidding ) at the SEDA Malaysia website , starting on August 2 , for small hydropower and on August 9 , for biogas and biomass ,” said KeTSA Minister Datuk Seri Takiyuddin Hassan .

Generally , the renewable resources used in Malaysia ’ s FiT programme are biomass ( including municipal solid waste ), biogas ( including landfill / sewage ), small hydro and solar photovoltaic . However , the newly announced quota of 187MW is only applicable for non-solar resources . According to SEDA Malaysia , these four renewable resources are selected for the FiT programme due to their technical potential and proven technologies in the local environment .

Since the introduction of the FiT Programme in 2011 , a quota of 1,440MW has been approved for all RE sources involving a total of 10,485 projects nationwide . On May 10 , SEDA Malaysia also announced the eligible producers that won the e-bidding in 2021 .

Ensure the process is done fairly

FiT quota application by e-bidding was implemented in 2018 for biogas resources before expanding for small hydropower resources in 2019 and biomass resources in 2021 .

“ The implementation of e-bidding is to ensure that the approved FiT quotas given to qualified bidders are being done fairly and competitively with the lowest tariff offers ,” shared Takiyuddin .

SEDA Malaysia CEO Dato ’ Hamzah Hussin and KeTSA Minister Datuk Seri Takiyuddin Hassan .

He said the approach would optimise the Renewable Energy Fund ( KWTBB ), thereby enabling more FiT quotas to be offered to RE developers in the future . The government expects the new FiT quota offering will generate investments of RM1.8 billion and create 550 job opportunities in the RE industry .

“ The move is also part of the government ’ s efforts to revive the country ’ s economic growth after the outbreak of COVID-19 , especially in the development of the RE sector .”

Takiyuddin stated that KeTSA hoped the FiT programme would continue contributing to the government ’ s aspiration of achieving the target of 31 per cent installed RE capacity by 2025 and 40 per cent by 2035 . The approved RE project is expected to generate and supply electricity from 2025 to 2027 . — @ Green

Further details on the quota application process , including the date of the briefing session for the bidders and the date of submission of the e-bidding application , can be obtained through the SEDA Malaysia website at www . seda . gov . my .

Datuk Seri Takiyuddin Hassan announced the new FiT quota offering for non-solar resources during KeTSA ‘ s monthly assembly .