SEDA Malaysia: Feed-in Tariff (FiT)

Click this link for Part 1 of SEDA Malaysia blog post.

Source: http://seda.gov.my/

Previously, we discussed SEDA Malaysia's function as a statutory body under the Sustainable Energy Development Authority Act 2011 [Act 726] to administer and manage the implementation of the Feed-in Tariff mechanism which is mandated under the Renewable Energy Act 2011 [Act 725]. SEDA Malaysia's roles are clearly stated in the SEDA Act 2011 and it is also responsible to spearhead the development of Renewable Energy industry in Malaysia. 

Source: http://seda.gov.my

For your information, SEDA Malaysia is the implementer of Feed-in Tariff program for development of Renewable Energy in Malaysia. Malaysia's Feed-in Tariff (FiT) obligates the Distribution Licensees (DLs) such as TNB to buy from renewable energy producers the electricity produced from renewable resources (renewable energy) and sets the FiT rates. Under the law, the DLs will pay for renewable energy supplied to the electricity grid for a specific duration. By guaranteeing access to the grid and setting a favourable price per unit of renewable energy, the FiT mechanism would ensure that renewable energy becomes a viable and sound long-term investment for companies industries and also for individuals. 

Source: Eco Ideal

The Cabinet has in principle agreed for the 1% surcharge on consumers' electricity bills which has been gazetted and collected from consumers. 1% surcharge is needed to achieve the target capacity of RE in the energy mix. Currently, 1% surcharge is imposed to all electricity consumers if their monthly consumption exceeds 300 kWh or their monthly electricity bills cost more than RM 77 a month. This money is channeled into the Renewable Energy Fund or RE Fund and administered by SEDA Malaysia and used to pay the premium Feed-in Tariff. 

Source: mesym.com

If you install a solar panel on your rooftop, you can sell the electricity to Tenaga Nasional Berhad (TNB). The rate of energy you sell is at RM 1.75/kWh and that is a lot compared to what you buy from TNB, RM 0.31/kWh. For this system to work, someone has to pay the difference in price of consumer-generated electricity and the market price of the electricity (Rm 1.75-RM 0.31 = RM 1.41). (Source: http://www.mesym.com). For more information on SEDA Malaysia and Feed-in Tariff, please log on to www.seda.gov.my and if you want to get involved, you must fill up an application before it is granted by SEDA Malaysia. The forms are available online on SEDA Malaysia's website and hard copies will be made available as SEDA Malaysia's office. All applicants will be treated fairly and equally through a transparent application prosess and the quota will be made available from time to time. Applicants must be aware of the news and announcement on SEDA Malaysia's website and submit the right documentation and information. Submission of false information may be subjected to refusal or revocation of any feed-in approval if granted and/or shall constitute an offence committed by them.

Source: http://www.solarmalaysia.com.my

There are a few issues faced by SEDA Malaysia in implementing the Feed-in Tariff as well. The Renewable Energy (RE) quota is limited by the availability of the RE Fund and currently, only 1% of contribution is collected from consumers. This amount has actually become a major concern of the public because of the general lack of trust in the government and they requested for SEDA Malaysia to be more transparent in disclosing the RE Fund. As a result, SEDA Malaysia impose a more stringent rules for the applicants of the Feed-in Tariff.

Source: http://www.thegreenmechanics.com

Alright, I know that some of you are overload of information already right? However, I would like to hear your opinion regarding the implementation of the Feed-in Tariff and the 1% surcharge imposed on consumers with electricity bills exceeding RM 77 a month. Perhaps SEDA Malaysia will hear your voice and make something about it. In my next blog post, I will write about several simple ways for you to use energy efficiently. Remember that we can work together for a better and greener tomorrow. Take care and God bless :)