The development of the renewable energy sector in Malaysia has been recognized since the Eight Malaysia Plan when alternative sources of energy in our daily consumption were introduced in the Five Fuel Policy. Renewable energy and sustainable measures are important to the country because of depleting fossil fuel sources can only last for a limited time. Energy is the cornerstone of any country’s economy thus energy security is a very important issue which must be managed well to ensure the economic growth is not hindered at any level. In 2011, Sustainable Energy Development Authority (SEDA) Malaysia is formed under the Sustainable Energy Development Authority Act 2011 [Act 726] and SEDA Malaysia becomes the implementer of the Feed-in Tariff program for the development of renewable energy effort in Malaysia.
Malaysia’s Feed-in Tariff system requires the Distribution Licensees (DLs) such as Tenaga Nasional Berhad and this year’s addition of Sabah Electricity Sdn. Bhd (SESB) and NUR Distribution Sdn. Bhd. (NUR) to buy from renewable energy producers the electricity produced by them. FiT rates are set by SEDA Malaysia with approval from KeTTHA to pay for the renewable energy supplied to the electricity grid for a specific duration. By having access to the grid and setting a favorable price per unit of renewable energy, the FiT mechanism also ensures that renewable energy becomes a viable and sound long-term investment for companies, industries and individuals. This can happen very easily if consumers are registered under SEDA Malaysia as one of the producers of renewable energy through solar panels, small hydro power, biomass and biogas at their homes or private lands.
The Cabinet has also agreed for the 1% surcharge on consumers’ electricity bills that has been gazetted and collected from consumers. This 1% surcharge is needed to achieve the target capacity of renewable energy in the long run. As of 2013, 1% surcharge is still imposed on all electricity customers and domestic electricity consumers are obliged to contribute to the surcharge only if their monthly electricity consumption exceeds 300 kWh or RM 77 a month. This money is channelled into the Renewable Energy Fund and administered by SEDA Malaysia to pay the premium Feed-in Tariff rate to those producers who generate electricity from renewable resources at homes or in industrial companies. But as of January 2014, this surcharge will increase by 0.6% to be 1.6 % for current electricity users. This increase will also affect the consumers in Sabah and Wilayah Persekutuan Labuan as they are charged with 1.6% of their electricity bills for the first time. Please refer to www.seda.gov.my for more news and information.
In conjunction with this effort, SEDA Malaysia invited bloggers to witness the development of renewable energy resources in Malaysia. We were brought to a solar farm by Kumpulan Melaka Berhad (KMB), wholly owned by Chief Minister Incorporated in its courageous renewable energy investment movement. Melaka State Government is the first in the country to build and operate its own solar farm facility and this is in line with its mission to be a green technology state by 2020. To witness all of the revolution on the 18th of January 2014 made me feel secured because I know that there is a future for Malaysia as the renewable energy industry is rapidly growing with incentives from the government and concerns of the society. Let us revisit the vast area of solar farm in this blog post and get to know about the Feed-in Tariff as well.
Built on a 7,248.43ha site at the Melaka World Solar Valley in the Rembia Industrial area, the site was completed in three phases as a core investment to the state government to accelerate and generate economic development in and out of Melaka. Kumpulan Melaka Berhad has emerged as the main industry player in solar energy project with the implementation of two solar-related projects; 10 KWp rooftop at KMB office and 5 MWp at the solar farm here. This is a clear example on how companies can play their part in the Feed-in Tariff mechanism as KMB can export the energy to Tenaga Nasional Berhad (TNB) at the rate of RM 0.9016 per kwh.
The first phase for 1.30 MWp had its initial operation date on the 11th of April 2013 with the Feed-in Tariff Commencement Date (FiTCD) started on the 20th April of the same year. The second phase, 1.22 MWp operated on 16th of May 2013 with the FiT Commencement Date on the 24th of the same month. The third phase began on the 2nd of August 2013 with FiT Commencement Date on the 9th of August 2013. In total, Kumpulan Melaka Berhad has a total capacity of 5 MWp solar farm with investment of RM 46 million. This project will definitely pay off in the long run as the Feed-in Tariff period takes about 21 years for KMB to sell the electricity produced to TNB.
The project components consist of PV modules, combiner box, inverter, transformer, 11 KV HT breaker and a monitoring system in a control building. KMB is lucky because the existing TNB transmission line is just situated by the site of the solar farm so the company have almost zero energy loss to the power grid. Interesting fact is, the average estimated energy production from KMB solar farm is:
a) 6, 162 MWh per year
b) 514 MWh per month
c) 17 MWh per day
The highest recorded data collection per day was on 7th October 2013 with 27, 569 KWh or at about 28 MWh. Please do the Mathematics by yourself and calculate the numbers with the FiT rate of RM 0.9016 per kWh and tell me how much Kumpulan Melaka Berhad can gain in a single day. Perhaps that is the benefit of investing in a solar energy industry as Malaysia is perfectly located nearby the equator and we receive most of the energy throughout the year. Even on cloudy days, solar panels installed at this farm can generate electricity and offer a promising return of the investment. You can contact Kumpulan Melaka Berhad for more information and KMB offers reliable solutions and products used for solar energy as well. KMB also welcomes public and private sectors to visit their solar farm for better idea and consultation of the solar farm. Here are the details of the solar farm and Kumpulan Melaka Berhad:
1)Kumpulan Melaka Berhad Solar Farm,
MukimRembiadan Sungai Petai,
76100 Alor Gajah,
2)Kumpulan Melaka Berhad Headquarters,
No 24-5&26-5, Tingkat 5,
Bangunan Kota Cemerlang,
75450, Lebuh Ayer Keroh,
Hang Tuah Jaya,
Call: 06-232 7880
Fax: 06-232 8980
Thank you for your time and hopefully you gain something beneficial from your reading. Thank you for support this blog and also SEDA Malaysia. Take care and God bless!