Development of Renewable Energy in Malaysia

The Generic Review of The Current Development in Malaysia

It is estimated that oil reserves will not last very much longer; thus, a switch to alternative energy solutions is crucial. The Malaysian government has already prepared to face the situation decades before. Many policies have been implemented, as well as programmes and initiative. Now, Malaysia is waiting for the ultimate solutions, the Malaysian Fit-in Tariff (FiT), which is scheduled to be implemented second quarter of 2011. This paper presents the main sources of alternative renewable energy in Malaysia and its potential as well as the main reasons Malaysia is turning to alternative energy solutions; to fully utilize its renewable energy (RE) resources, fulfill the energy demand in the future and to reduce carbon emissions. This paper also discusses the steps taken by the government in preparation for FiT and overcoming the barriers in RE development.

Renewable Energy (RE) is any form of primary energy from recurring and non-depleting indigenous resources. “Renewable resources” means the recurring and nondepleting indigenous resources or technology as set out in the first column of the Schedule of the RE Act 2011

Renewable energy’s scenario and development in Malaysia is not as rapid as the current situation in other parts of the world especially in terms of research development. This is due to several factors mainly our country’s geographical structure and the lack of natural sources to name a few. However, Malaysia still has the government agency/body to monitor renewable energy’s growth in today’s context.

Renewable Energy Development in Malaysia

8th Malaysia Plan (2001 -2005):

RE as the 5th Fuel
Implied 5% RE in energy mix

9th Malaysia Plan (2006 – 2010):

Targeted RE capacity to be connected to power utility grid: 300 MW – Peninsular Malaysia; 50 MW – Sabah
Targeted power generation mix: 51 % natural gas, 26 % coal, 9 % hydro, 8 % oil, diesel 5 %, biomass 1 %
(2010) Carbon intensity reduction target: 40% lower than 2005 levels by 2020

RE as of 31st December 2010

Connected to the utility grid (as of 2011): 68.45 MW (20 % from 9th
MP target)
Off-grid: >1GW (private palm oil millers and solar hybrid)

Malaysian National Renewable Energy Policy & Action Plan

Approved by Cabinet on 2nd April 2010
Policy Statement: Enhancing the utilisation of indigenous renewable energy resources to
contribute towards national electricity supply security and sustainable
socio-economic development.
Objectives:
– To increase RE contribution in the national power generation mix;
– To facilitate the growth of the RE industry;
– To ensure reasonable RE generation costs;
– To conserve the environment for future generation; and
– To enhance awareness on the role and importance of RE.

Strategic Thrusts of the National RE Policy

Strategic Thrust 1: Introduce Legal and Regulatory Framework

Strategic Thrust 2: Provide Conducive Business Environment for RE

Strategic Thrust 3: Intensify Human Capital Development

Strategic Thrust 4: Enhance RE Research and Development

Strategic Thrust 5: Create Public Awareness & RE Policy Advocacy Programmes

SEDA Malaysia

The Sustainable Energy Development Authority of Malaysia (SEDA Malaysia) is a statutory body formed under the Sustainable Energy Development Authority Act 2011 [Act 726]. The key role of SEDA is to administer and manage the implementation of the feed-in tariff mechanism which is mandated under the Renewable Energy Act 2011 [Act 725]

Functions of SEDA Malaysia

SEDA Malaysia has all the functions conferred on it under the Renewable Energy Act 2011, any other sustainable energy laws as well as the following functions:

To advise the Minister and relevant Government Entities on all matters relating to sustainable energy including recommendations on policies laws and actions to be applied to promote sustainable energy;
To promote and implement the national policy objectives for renewable energy;
To promote, stimulate, facilitate and develop sustainable energy;
To implement, manage, monitor and review the feed-in tariff system including to carry out investigations, collect, record and maintain data, information and statistics concerning the feed-in tariff system, and to provide such data information and statistics to the Minister as he may from time to time require;
To implement sustainable energy laws and to recommend reform to such laws to the Federal Government;
To promote private sector investment in the sustainable energy sector including to recommend to the relevant Government Entities incentives in relation to taxes, customs and excise duties and other fiscal incentives applicable to such investment;
To carry out or arrange for the conduct of researches, assessments, studies and advisory services, collate, analyse and publish information, statistics and factors influencing or relevant to the development of sustainable energy and to disseminate such relevant information, statistics and factors to Government Entities, the public and investors or potential investors investing in sustainable energy;
To conduct promote and support, in such manner as SEDA Malaysia deems fit, research and innovation activities relating to sustainable energy;
To conduct, promote and support, in such manner as SEDA Malaysia deems fit, training or other programmes relating to the development of human resources and capacity building in the sustainable energy sector;
To implement measures to promote public participation and to improve public awareness on matters relating to sustainable energy;
To act as a focal point to assist the Minister on:
- matters relating to sustainable energy; and
- climate change matters relating to energy
To carry out any other functions conferred by or under any sustainable energy law and to perform any other functions that are supplemental incidental or consequential to any of the functions above