Quota for renewable energy tech fixed at 190 MW

Posted on November 23, 2011. Filed under: Energy |

-The Star-

PUTRAJAYA: Sustainable Energy Development Authority Malaysia (Seda) has fixed the quota for all renewable energy (RE) technology at 190 MW for 2011/2012.

The revision is mainly because the feed-in tariff (FiT) system for RE has been postponed and would only be launched on Dec 1. The original plan was to offer 219 MW this year.

“I had been informed by Seda the quota is 190 MW, 1980 MW and 250 MW for 2011/2012, 2013 and 2014 respectively,” Energy, Green Technology and Water Minister Datuk Seri Peter Chin said at the launch of Seda’s office yesterday.

Chin said he had been approached by many parties seeking feed-in approval (FiA), which would enable them to partake in the quota that had been determined.

“Thus, there is a critical need to create a fair and transparent system when opening the quota to interested RE players,” he said, adding that Seda had developed an e-FiT online system to process applications for the approval.

Of the 190 MW, 50 MW have been allocated for solar photovoltaic (PV) for 2011/2012. The quota for small hydro and biogas are fixed at 30 MW each while for biomass it is 80 MW.

“If you have seen the quota on our website, you will notice that it changes almost every day. It’s because we are trying to tweak the quota to match the availability of the RE fund for all successful applicants of FiT,” Seda chief executive officer Badriyah Abd Malek said.

She said Seda had been deliberating on the quota, trying to match the quota with the RE fund and had decided to fix it at 190 MW.

Badriyah said this was to ensure that each applicant got paid and to be certain the FiT payment was honoured during the entire contract period with the power utility.

Meanwhile, consumers would start paying the 1% levy to cover the costs associated with the FiT scheme for RE from Dec 1.

Chin said the levy was expected to rake in about RM300mil a year to facilitate the implementation of FiT.

He said the Government had given a soft loan of RM300mil to Seda to kick-start its operations.

Due to the overwhelming response to solar PV, the FiT applications for solar PV were limited to a maximum 5 MWp rated capacity.

“The maximum limit is determined because Seda needs to manage the RE fund required for all the different RE sources under the FiT and to avoid oversubscription,” Chin said.

Seda chairman Tan Sri Dr Fong Chan Onn said solar PV currently had the highest FiT rates and it was only fair for all applicants to have a chance. Moreover, the production of 5MW would required some 60 acres

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