Un­der­stand­ing FiT

The Star Malaysia - Star2 - - ECOWATCH - Learn more at www.seda.gov.my

> LAUNCHED in De­cem­ber 2011, the Feed-in Tar­iff (FiT) scheme en­ables com­pa­nies and house-own­ers to pro­duce re­new­able en­ergy from four sources – so­lar pho­to­voltaic, biogas (or­ganic waste, land­fill, sewage sludge), biomass (agri­cul­tural waste, garbage) and small hy­dropower – and sell it to the grid. > The power pro­duc­ers sign power pur­chase agree­ments with Te­naga Na­sional Bhd and Sabah Elec­tric­ity Sdn Bhd (dis­tri­bu­tion li­censees) for tenures of 21 years for so­lar and hy­dropower, and 16 years for biogas and biomass. TNB and SESB (the FiT scheme has yet to cover Sarawak) are ob­li­gated un­der the Re­new­able En­ergy Act 2011 to ac­cept the power into the grid. > To be a power pro­ducer, com­pa­nies and in­di­vid­u­als ap­ply on­line. Quo­tas are set for the var­i­ous sec­tors ev­ery year. > The pay­ment is cur­rently higher than elec­tric­ity tar­iffs and varies: so­lar PV (from RM1.04 per kWh this year), biogas (from 31 sen), biomass (from 30 sen) and hy­dropower (from 23 sen). The rates are re­duced an­nu­ally (called de­gres­sion) as the cost of re­new­able en­ergy tech­nol­ogy is ex­pected to de­cline over time. For in­stance, the tar­iff for so­lar PV was RM1.23 in Jan­uary 2012. > For the re­new­able en­ergy “sold” to the grid, TNB and SESB do not pay the full FiT rates but what it costs to pro­duce the elec­tric­ity us­ing con­ven­tional means (cur­rently 26.41 sen per kWh). The rest of the FiT pay­ment comes from the Re­new­able En­ergy Fund. TNB and SESB also re­ceive a 2% ad­min­is­tra­tive fee from the fund, and Seda 3%. > House­holds (ex­cept those us­ing less than 300kWh per month) con­trib­ute to the fund – 1% of their monthly elec­tric­ity bill since De­cem­ber 2011; this was raised to 1.6% in Jan­uary. Only 29% of con­sumers in Penin­su­lar Malaysia and 38% in Sabah are con­tribut­ing. > As of De­cem­ber, Seda has ap­proved projects with re­new­able en­ergy ca­pac­ity of 482MW, com­pris­ing so­lar PV (40.2%), biomass (27.2%), hy­dropower (27.2%) and biogas (4.9%). > To date, projects with 164.12MW have been com­pleted: so­lar PV (88.38MW), biomass (52.3MW), biogas (11.74MW) and hy­dropower (11.7MW), These have avoided 740,222 tonnes of car­bon diox­ide emis­sions.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.