Mixed Response On Feed-In Tariff

Posted on June 10, 2010. Filed under: Energy |

(Bernama) — The one per cent Feed-in Tariff (FiT) to be incorporated into consumers’ electricity tariff under the 10th Malaysia Plan (10MP) has received mixed response.

The FiT, announced by Prime Minister Datuk Seri Najib Tun Abdul Razak when tabling the 10MP Thursday, is a mechanism that allows electricity produced from renewable energy, such as solar power, to be sold to utilities at a fixed premium price and for a specific duration.

Renewal energy expert Dr Mohamad Amran Mohd Salleh, from Universiti Putra Malaysia, said the move was a positive one as it would help increase public inclination towards investing in renewable energy.

“It’s a move in the right direction, and FiT has been implemented in over 40 developed nations,” he told Bernama here.

Meanwhile, Water and Energy Consumers Association Malaysia secretary-general S. Prabakaran said that though it would encourage more people to use renewable energy, there needed to be strict auditing on the cost of producing the energy so that there would not be loopholes for abuse.

“Otherwise, the bulk of consumers may find themselves paying a much higher tariff than before,” he said.

The FiT is to be administered by a special agency, the Sustainable Energy Development Authority under the Ministry of Energy, Green Technology and Water to support the development of renewable energy.

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