The government of Malaysia has initiated renewable energy policies to encourage industries and individuals to employ renewable-energy-powered systems in power applications.
In 2004 Malaysia introduced the Feed-In Tariff (FiT) program to lead the country towards energy independence; then, in 2011 the Renewable Energy Bill and the Sustainable Energy Development Authority bill passed the House of Representatives. This act represents an enhancement of the first program: it launched a full-featured Advanced Renewable Tariff scheme, which included specific targets for each year.
The FiT program aims at increasing investments in renewable energy sources. The FiT System is catalysing generation of renewable energy, up to 30 MW in size, allowing electricity produced from indigenous (produced within the country) renewable resources to be sold to power utilities at a fixed premium price for a specific duration. The renewable energy producers can be business owners, private investors, as well as homeowners.
How does the system work? The Feed-In Tariffs System offers long-term contracts and guaranteed pricing to producers of renewable energy. The renewable resources that are eligible under the FiT are solar photovoltaic, biogas, biomass, and small hydropower. Distribution licensees pay renewable energy power generators a premium for clean energy that is generated. These generators sell their clean energy to distribution licensees for a fixed number of years. The exact duration will depend on the type of renewable resource used for power generation. The FiT System provides a fixed payment from distribution licensees for every kilowatt-hour (kWh) of renewable energy generated and a guaranteed minimum payment for every kWh exported to the grid.
Since this scheme began in 2011, The FiT has become popular. Overall, since Malaysia introduced its renewable energy FiT in 2011, 2,628 applications for 484.03MW of capacity have been approved across all forms of generation.
Simple concept, low costs = Effective tool. Being based on a simple concept and having low administrative costs, the FiT System has proven to be effective and efficient in developing new markets for renewable energy in different countries.
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PVCompare is glad to announce that will participate to IGEM 2015 as Media Partner.
It will take place at Kuala Lumpur Convention Centre from the 9th to the 12th of September of this year. IGEM 2015 (International Greentech & Eco Products Exhibition & Conference Malaysia) will look to provide a platform for the key drivers within the Malaysian Government’s Green Technology mandate.
Conceived in the year 2010, the IGEM series was positioned to take the lead and gather industry players and professionals from the public and private sectors (local & international) to explore and grasp the lucrative opportunities in the green market.
Eliana Canavesio