September-October , 2021 |
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Amcorp Perting Hydro 6MW , Bentong , Pahang- one of the successful project under the FiT programme .
also been imposed post-installation in some countries .
“ These conditions will impact the operation of the solar projects either towards meeting its annual energy commitment or its financial commitment . While growing the RE sector , Malaysia has taken a cautious approach to ensure these conditions will not be applied here .
“ We can also realise the energy transition phase without jeopardising the direct and indirect sectors involved in the electricity supply industry ,” said Ibrahim .
He explained that the government ’ s power system and capacity planning were dynamic , considering technology breakthroughs , global trends , system readiness , and general integration costs . Therefore , the macro-level policy and target will evolve in tandem with the latest technological and socio-economic developments .
The liberalisation of the solar power industry has been a hot topic for a couple of years . While there was the demand for it , there were many factors to be considered .
According to Ibrahim , the key is striking a good balance between the energy trilemma – environmental impact , affordability and system security . While the government is currently assessing this potential , the energy trilemma must be considered to ensure RE ’ s sustainable development .
“ In European countries , for example , the market is liberalised with the support of solid interconnection facilities among the EU countries .
“ On the other hand , under the ASEAN Power Grid initiatives , Malaysia has few interconnection projects in the pipeline and the
Malaysia ’ s largest rooftop solar PV project under NEM 2.0 at 31 MWp by Xinyi Solar .
existing interconnection facilities with Thailand and Singapore .
“ However , the development of the interconnection projects requires a long lead time and is subject to the government to government ’ s current directions . This initiative , alongside other enablers , including grid system enhancement , improved demand management capabilities and smart grids , will facilitate this demand and the aspirations of industry players ,” he explained .
More incentives
Assisting RE ’ s growth are the incentives introduced by the government in support of solar development . These include the fiscal incentives by Malaysia Investment Development Authority ( MIDA ) and Green Tech Malaysia .
Incentives such as Green Investment Tax Incentives ( GITA / GITE ) and Green Technology Financing Scheme ( GTFS ) helped stimulate RE growth in Malaysia while benefiting investors . GTFS 3.0 , launched last year , was in line with the national aspiration to accelerate RE development .
However , Ibrahim believed there was always room for improvement , especially in enabling higher take-ups of solar capacity from the domestic sector . In the ongoing NEM 3.0 programme , the 300MW capacity allocated for the commercial and industrial sector was fully subscribed within four months of the launch .
In comparison , for NEM @ Rakyat , in which 100MW of capacity was allocated , only about 13 per cent of the quota was taken up .
One of the challenges facing marketing to the public is the high upfront capital required to invest in a rooftop solar system . Ibrahim believed more fiscal incentives and support would promote solar systems to the domestic sector .
He opined the private sector ’ s contribution was vital in realising Malaysia ’ s RE target .
“ A series of engagement sessions between the government and the private sector enables good insights on market demand . National giants including Petronas , Tenaga Nasional Berhad and Maybank , and private entities are committing to the Nett Zero Carbon Emission target by 2050 .
In supporting their aspiration , the government will at best facilitate the means . Aside from the RE programmes , a new market for Renewable Energy Certificates ( RECs ) and the myGreen + tariff scheme was introduced in 2019 .
Support from the private sector in Malaysia ’ s energy transition phase is crucial in ensuring optimal benefits to the private sector , specifically , and the rakyat in general .
While solar projects have been multiplying , biomass and biogas endeavours should not be forgotten nor neglected .
Ibrahim explains that biomass and biogas were earmarked since the early inception of RE in 2001 , under the Small Renewable Energy Power ( SREP ) programme .
“ The development of biomass and biogas is on a relatively smaller scale and distributed mainly in securing electricity supply at palm oil mills and managing its by-products .
“ The growth of biomass and biogas is further supported post-2010 under the Feed-in-Tariff programme . Up to 2020 , a total capacity of 594MW from biomass and 123MW from biogas was in operation .
“ Moving forward , biomass and biogas have more potential in realising the energy transition phase . Projections on new RE capacity from these potentials have been identified , particularly for Sabah , which has excellent potential in by-products , including empty fruit bunch and POME .
“ Biomass and biogas also have the potential to making fossil-fuels ‘ cleaner ’ resources by co-firing with coal or blending with natural gas . Currently , over 80 per cent of the electricity demand is met from fossil-fuels generation capacity ,” explained Ibrahim . —@ greenXtra