Seda says no RE licence awarded to date

Posted on November 17, 2011. Filed under: Energy |

-The Star-

PETALING JAYA: Sustainable Energy Development Authority Malaysia (Seda) says it has not awarded any licence to renewable energy players for the production of renewable energy (RE), refuting claims that some players have secured a licence.

Rumours have been rife over the past weeks that some players have secured licencing under the Feed-In Tariff (FiT) although the opening for application would only begin from Dec 1.

Apart from Cypark Resources Bhd, other listed companies also producing RE or have expressed interest to venture into RE are MMC Corp Bhd, Fitters Diversified Bhd, Berjaya Corp Bhd and KUB Malaysia Bhd.

An official from Seda said licence would only be awarded beginning Dec 1 and no players have secured a licence so far.

“We cannot issue any licence for now as the FiT will only start next month… no one has the licence,” she said, adding that the e-FiT online application would begin next month.

Seda is responsible for managing the FiT mechanism for RE in the country as well as to award licences to renewable energy players for the production of RE.

Cypark group chief executive officer Daud Ahmad said Cypark had obtained all approvals and met all conditions for FiT and it had already completed a large portion of its solar farm in Pajam, Nilai. He also said the solar farm was one of the Entry Points Projects under the Economic Transformation Programme.

“We have obtained all the necessary approvals to operate the solar farm but the quota will only be officially allocated when FiT is implemented next month. The quota for FiT will be based on first come, first serve basis,” Daud said, adding that the power purchase agreement with Tenaga Nasional Bhd would only be signed when FiT was implemented.

Cypark recently invested RM94.29mil to build a renewable energy park comprising a 2MW biogas plant and a 8MW solar power facility with national grid connection on a remediated landfill.

Daud said that by year-end its solar farm would be able to generate 8MW solar power and 2MW biogas in March.

A Seda spokesperson explained that even if they received a licence on Dec 1, it would be a “conditional licence” before an actual certificate would be given to RE players.

“They (applicants) will receive their approval instantaneously when they apply online. However, Seda will vet through the documentation provided within two weeks. If everything is alright, applicants of above 72KW will have to pay a fee. Only when the fee has been paid will Seda then issue a certificate,” she said.

Those producing RE above 72KW will be charged RM10 per KW. For example, a non-individual producing 73KW will have to pay a RM730 fee, or RM10 per KW.

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