malaysia’s choice to catalyst renewable energy …...renewable energy development in malaysia 8...
TRANSCRIPT
1
Leong CF
ICT Director, e-FiT Online System Sustainable Energy Development Authority Malaysia
Ministry of Energy, Green Technology & Water Copyright © SEDA Malaysia, 2012
Feed-in Tariff Mechanism : Malaysia’s Choice to Catalyst Renewable Energy Growth & Policy Updates on Solar PV
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Copyright © SEDA Malaysia 2012 2
Disclaimer
Background
Malaysian National RE Policy & Action Plan
Regulatory Framework
The Malaysian Feed-in Tariff Mechanism
The Malaysia e-FiT Online System
Feed-in Tariff Implementation Status
2016 Solar PV Degression & Quota Allocation
More Solar PV projects
PV Industry
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Presentation Outline
Background
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Population 28.8
million (2012)
Lies directly
within the sunbelt
Technical potential of PV ≈ 7.8 TWh,
about 21% of residential and
commercial electricity demand
in 2005
Technical Potential of Solar PV
Copyright © SEDA Malaysia, 2012
Renewable Energy (RE) is any form of primary energy from recurring and non-depleting indigenous resources.
“Renewable resources” means the recurring and non-depleting indigenous resources or technology as set out in the first column of the Schedule of the RE Act 2011
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Definition of Renewable Energy
Energy Policies in Malaysia
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1975 • National Petroleum Policy
1979 • National Energy Policy
1980 • National Depletion Policy
1981 • 4th Fuel Diversification Policy
2001 • 5th Fuel Policy
2011 • Renewable Energy Act
Copyright © SEDA Malaysia 2012
Renewable Energy Development in
Malaysia
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8TH Malaysia Plan (2001 -
2005)
• RE introduced as the 5th Fuel
• Implied 5% RE in energy mix
9th Malaysia Plan
(2006 – 2010)
• Targeted RE : 300 MW – Peninsular Malaysia; 50 MW - Sabah
• Connected to the utility grid: 61.2MW (17% from 9th MP target through Small Renewable Energy Programme (SREP)
• Cabinet approved National RE Policy & Action Plan (October 2010)
10th Malaysia Plan (2011-
2015)
• Enactment of RE Act 2011 & SEDA Act 2011 (27 & 28 April 2011)
• Establishment of SEDA, implemented Feed-in Tariff on 1st Dec 2011
• 2015: Energy mix 43% coal, 40% gas, 14% large hydro, 2% RE, 1% oil
11th Malaysia Plan (2016-2020)
• Target energy mix of 53% coal, 29% gas, 15% large hydro, 3% RE.
• Target RE (FiT) capacity of 2,080 MW
• Introduce Net Energy Metering (NEM)
Off-grid PV market focuses on rural electrification especially in Sabah and Sarawak
The on-grid PV market was driven by the Malaysia Building Integrated PV (MBIPV) Project (2006 - 2010) which provided capital subsidy for 2MW PV systems (household + commercial)
As of end of 2011, off-grid PV dominates the PV market in Malaysia
• Off-grid PV – 11MW
• On-grid PV – 2.5MW
Since then, the Ministry realized in order for solar PV market to grow, there is a need for an integrative renewable energy framework + action plan
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Status of Solar PV in Malaysia
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Source: 11th Malaysia Plan (2015)
Population (2015) : 31m
GDP per capita (2014) : US$10,566
Area : 329,847 km²
Installed electricity generation capacity (2013):
29,748MW (81% in Peninsular M’sia, 11.6% in
Sarawak, 7.6% in Sabah)
Malaysia: Electricity Generation Mix
Malaysian National RE Policy & Action Plan
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Policy Statement:
Enhancing the utilisation of indigenous renewable
energy resources to contribute towards national electricity supply security
and sustainable socio-economic development.
Objectives:
To increase RE contribution in the national power generation mix;
To facilitate the growth of the RE industry;
To ensure reasonable RE generation costs;
To conserve the environment for future generation; and
To enhance awareness on the role and importance of RE.
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National Renewable Energy Policy & Action Plan
Approved by Cabinet on 2nd April 2010
Copyright © SEDA Malaysia 2012
National RE
Policy
Strategic Thrust 1: Introduce Legal and Regulatory
Framework
Strategic Thrust 3: Intensify Human
Capital Development
Strategic Thrust 2: Provide Conducive
Business Environment for
RE
Strategic Thrust 4: Enhance RE
Research and Development
Strategic Thrust 5: Create Public
Awareness & RE Policy Advocacy
Programmes
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Strategic Thrusts of the National RE Policy
According to
National RE Policy
set in 2009, PV
only supposed to
get 65 MW by
2015, and about
200 MW by 2020
RE Act gazetted in
June 2011
FiT introduced in
Dec 2011
Increased to 1.6
% on Jan 2014
REPAP Targets
Year Cumulative RE Capacity
RE Power Mix (vs Peak Demand)
2015 985 MW 5.5%-6%
2020 2,080 MW 11%
2030 4,000 MW 17%
Regulatory Framework
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SEDA Malaysia established on 1st Sept. 2011
under the SEDA Act 2011
implement, manage, monitor
& review the Feed-In Tariff system
advise the Minister & Government on all matters relating
to sustainable energy
promote & implement
national policy objectives for RE
implement sustainable energy laws including the
RE Act & recommend
reforms
promote private sector investment
in sustainable energy sector
measures to improve public
awareness
act as focal point on matters relating
to sustainable energy & climate change matters
relating to energy
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SEDA Malaysia
Renewable Energy Act 2011
RE Act: an Act to provide for the establishment & implementation of a special tariff system to catalyze the generation of renewable energy and to provide for related matters.
Comprises of 9 Parts and 65 Clauses
Part I: Preliminary Part II: FiT System
Part III: Connection, Purchase and Distribution of RE
Part IV: Feed-in Tariff
Part V: Renewable Energy Fund
Part VI: Information Gathering Powers
Part VII: Enforcement
Part VIII: General
Part IX: Savings and Transitional
Passed in Parliament: 27th April 2011
Enforced : 1 December 2011
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Renewable Energy Act 2011
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• A mechanism that allows electricity that is produced from indigenous RE resources to be sold to power utilities at a fixed premium price and for specific duration.
• Provides a conducive and secured investment environment which will make financial institutions to be comfortable in providing loan with longer period (>15 years).
– Provides fixed revenue stream for installed system
– Only pays for electricity produced: promotes system owner to install good quality and maintain the system
– With suitable degression rate, manufacturers and installers are promoted to reduce prices while enhancing quality
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Renewable Energy
electricity generated or produced from renewable resources
Renewable Energy
Installation
Renewable Resources
recurring and non-depleting indigenous resources or
technology as set out in the first column of the Schedule
of the RE Bill
Feed-in Approval
Holder
Distribution Licensee
holder of a license to distribute issued by the Commission under section 9 of the Electricity Supply Act 1990
Authority
Sustainable Energy Development
Authority of Malaysia established under
the Sustainable Energy Development
Authority Act 2011 [Act 726]
a person who holds a feed-in approval
installation which generates renewable energy and
includes any technical facility of that installation which
converts mechanical, chemical, thermal or
electromagnetic energy directly into electricity;
RE Act: Key Interpretations
The Feed-in Tariff Mechanism : Malaysia’s Choice to Catalyst RE Growth
20 Copyright © SEDA Malaysia, 2012
Feed-in Tariff Mechanism
Electricity produced from indigenous RE resources to be sold to power utilities at a fixed premium price and for specific
duration
Provides fixed revenue stream for installed
system
Pay for electricity produced: promotes
system owner to install good quality and
maintain the system
With suitable degression rate,
manufacturers and installers are promoted to reduce prices while
enhancing quality
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RE Resources eligible for FiT
Biogas • including
landfill gas &
sewage
Biomass • including
solid waste
Small hydropo
wer Solar PV Geother
mal
REPPA for 16 years REPPA for 21 years
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Individuals
• ≥ 21 years
• Malaysians
• Foreign individuals:
• limited to Solar PV
• ≤ 72kWp
Companies
• All legally registered companies and businesses
• Direct ownership
• Shareholding limitations:
• Foreign companies: ≤ 49%
• Distribution Licensee: ≤ 49% within its distribution area
Other entities
• community
• body corporate
• society
• co-operative society
• firm
• local authority
Feed-in Tariff Rules 2011
Copyright © SEDA Malaysia, 2012
Power System Study (PSS)
For RE Installation > 425kW (grid-connected)
• PSS is required to asses the potential impact of the distributed generation on the planning and operation of the Distribution Licensee’s transmission system
For RE installation > 12kW up to 425kW
• Connection confirmation check (CCC) is required
Power system study is being conducted by the Distribution Licensee at a fee
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RE Power Purchase Agreement
Type of renewable energy power purchase agreement (REPPA) applicable to each Feed-in Approval holder would depend on:
• the renewable resource utilised by;
• the proposed installed capacity of the renewable energy installation to be installed.
Renewable energy power purchase agreements and Feed-in Approvals can be transferred to new house owners with prior consent from SEDA Malaysia.
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Distribution Licensee’ obligation
Distribution Licensees are legally bound to not only purchase renewable energy but also prioritise such purchases over electricity generated using non-renewable resources.
If failure, a penalty will be levied on the distribution licensee
Specific time-frames set for all parties involved with established client charters.
Contractors/service providers and feed-in approval holders to set realistic target dates for the feed-in tariff commencement date
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FiAH’s Commitment
Under RE Power Purchase Agreement, Feed-in Approval Holders (FiAHs) must provide 70% of their declared energy yield based on an average annual output
For renewable energy installation with net export capacity > 10MW, liquidated damage will be imposed by distribution licensee if the declared annual energy output falls below 70%
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The Malaysian
Feed-in Tariff
Online System
(e-FiT System)
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SEDA’s Official Portal (www.seda.gov.my)
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e-FiT Online System
Transparent
Any Time, Any
Where
Green (Online)
Unbiased, Fair
Auto-comput
e
Real Time
Features of e-FiT Online System
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Online Quota with Real-time
Quota Availability
Real time Quota Information
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Category of Solar PV
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Category of Solar PV application
• Individual (up to 12kW)
• Community (up to 48kW)
• Non-Individual (up to 425kW)
• Non-Individual (> 425kW up to 1MW)
Limit of 30MW Solar PV
accumulative installed capacity
per RE Developer/Non-
Individual Applicant
Limit of 5MW Solar PV
accumulative installed capacity
for each shareholder of the
RE Developer; direct or indirect
FiT Application Detail
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RE Project Information
Contractor / Service
Provider
Technical Detail
Financial Information
Supporting Documents
Project Workplan
Statutory Declaration
Copyright © SEDA Malaysia, 2012
System Allocation of Quota
If No Quota Available,
Stop
If Quota Available,
System Assign Capacity
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System Pre-Allocates Capacity
Compute RE Fund
Generate Invoice
Sign & Upload Statutory Declaration within 3 days
Pay Application Fee within 7 days, if any
Deliver Statutory Declaration to SEDA office within 7 days
Verify Application & Query Applicant
Refuse or Grant Feed-in Approval
FiT Verification Process
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Generate FiA Certificate
FiT Realization Processes
User Registration
Feed-in Tariff Application
Feed-in Approval
REPPA signing with DL
Register REPPA with SEDA
ST Provisional License
Financing & Procurement
Construction / Installation
ST Permanent Generating
License
Testing & Commissioning
FiTCD – SEDA’s verify
Actual CAPEX & OPEX
FiTCD – SEDA’s confirmation
FiT Commence Distribution Licensee Pay
Monitor Energy
Production
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FiT Implementation & Outcome
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Cumulative Approved FiT Applications (31 October 2015)
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No. RE Sources No. of
Application Capacity
(MW) Percentage Total
Capacity
1 Biogas 90 158.18 13.88%
2 Biomass 37 348.79 30.60%
3 Small Hydro 36 279.64 24.53%
4 Geothermal 1 30.00 2.63%
5 Solar PV 7,212 323.33 28.36%
• Solar PV [Individual] 6,544 60.60 5.32%
• Solar PV [Community] 220 4.78 0.42%
• Solar PV [Non-Individual] (<425 kW)
338 61.00 5.35%
• Solar PV [Non-Individual] (>425 kW – 1MW)
110 196.94 17.28%
Total 7,376 1,139.93 100.00%
Cumulative Applications Achieved Commercial Operations (31 October 2015)
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No. RE Sources No. of
Application Capacity
(MW) Percentage Total
Capacity
1 Biogas 9 17.23 5.29%
2 Biomass 7 74.9 23.02%
3 Small Hydro 5 18.3 5.62% 4 Geothermal 0 - - 5 Solar PV 4,802 214.98 66.06%
• Solar PV [Individual] 4,472 43.42 13.34%
• Solar PV [Community] 54 0.87 0.27%
• Solar PV [Non-Individual] (<425 kW)
209 32.34 9.94%
• Solar PV [Non-Individual] (>425 kW – 1MW)
67 138.35 42.52%
Total 4823 325.41 100.00%
2016 Solar PV Degression & Quota Allocation
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PV FiT (Basic) & 2016 Degression Rates
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Renewable energy installation having
an installed capacity of Basic rate 2015
(RM / kWh)
Degression Rate
2016
1. up to and including 4 kilowatts 0.9166 10%
2. above 4 kilowatts, and up to and
including 12 kilowatts 0.8942 10%
3. above 4 kilowatts, and up to and
including 24 kilowatts 0.8942 10%
4. above 24 kilowatts, and up to and
including 72 kilowatts 0.7222 15%
5. above 72 kilowatts, and up to and
including 1 megawatts 0.6977 15%
6. above 1 megawatts , and up to and
including 10 megawatts 0.5472 15%
7. above 10 megawatts , and up to
and including 30 megawatts 0.4896 15%
PV FiT (Bonus) & 2016 Degression Rates
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Renewable energy installation having any one
or more of the following criteria in addition to
basic rate
Bonus rate
2015 (RM / kWh)
Degression
Rate
2016
1. use as installation in building or building
structures +RM 0.1722 10%
2. use as building materials +RM 0.1656 20%
3. use as locally manufactured or assembled
solar photovoltaic module +RM 0.0500 0%
4. use of locally manufactured or assembled
solar inverters +RM 0.0500 0%
More Solar PV projects
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off-Grid Hydrid Solar PV
In the State of Sabah
- mainly on islands
In the State of Sarawak
- In the interiors
• > 5.8 MWp
• > 2.2 MWp
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11th Malaysia Plan (11MP]
Malaysia targets to reduce the intensity of greenhouse gas emissions (GHGs) to 40% of GDP in 2020 through: • RM45 million for the implementation of an
Electricity Mobility Action Plan including energy audit process;
• Sustainable Energy Development Authority (SEDA) will offer a quota of 100MW per year under the Net Energy Metering Scheme to encourage the use of solar photovoltaics; and
• Extend the implementation period of the Green Technology Financing Scheme until 31 December 2017 with a fund of RM1.2 billion.
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Increasing the share of RE through PV
On 18 August 2015, the Planning and Implementation Committee for Electricity Supply and Tariff (JPPPET) approved 2 new mechanisms for RE:
Net Energy Metering (NEM) – announced by the Hon. PM on 23 Oct 2015 in Malaysia’s 2016 Budget Speech
Utility consumers are allowed to install PV systems on their roof for self-consumption, with the balance being exported to the Grid, and net-off from their monthly bills at displaced cost
Total quota of 500 MW till 2020 or 100 MW a year starting from 2016
After 500 MW capacity is reached, new entrants might have to pay a monthly fee to remain connected to the Grid
Small non-PV systems may also be considered for NEM (e.g. micro hydro, biogas)
Utility scale PV
PV plants with capacity ≤ 50 MW selected through open bidding process and connected to either the Distribution or the Transmission network
• Total capacity of 1000 MW by 2020 or 250 MW a year starting from 2017
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ASEAN Targets : New definitions & RE Targets
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AMEM (Asean Ministers of Energy Meeting) in 2014 made two important decisions
• Large hydro and off-grid hybrid RE systems to be classified as RE
• Target RE capacity increased to 30 % of installed capacity by 2020 from old target of 15 % of installed capacity by 2015
• For Malaysia, this has two important implications
• RE installed capacity has immediately shot up from < 300 MW to almost 4000 MW, by including Temengor, Bakun, and all the other existing large hydros and off-grid systems
• RE target for 2020 = 30 % of 30 GW = 9000 MW
• Expected RE installed capacity by 2020
• Existing large hydro & off-grid in 2015: 3700 MW
• FiT by 2020: approximately 1100 MW
• Expected new large hydro and off-grid RE: 700 MW
• Total: 5500 MW
• Shortfall: 3500 MW
PV Industry
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Prospecting for RE Industry Partner
*** EPC: needs to
have local office (or
work with local
partner) ***
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PV Manufacturing Statistics (2014)
No. Company Name Capacity Employment
Metallurgical Grade Silicon / Polysilicon
1 Elpion Silicon 33,4 kilo tonne 160
2 Tokuyama 20 kilo tonne 680
Total 53,4 kilo tonne 840
Wafer & Solar Cells
1 AUO-SunPower 700 MW 2 145
2 MEMC 1 000 MW 676
3 Panasonic Energy 300 MW 969
4 Hanwha Q-Cells 1 000 MW 860
5 TS Solartech 400 MW 123
Total 3 400 MW 4 773
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PV Manufacturing Statistics (2014).. cont
PV Modules Capacity (MW) Employment
1 First Solar 1 690* 3 700
2 Flextronics 577 800
3 Panasonic Energy 300 1 207
4 Malaysian Solar
Resource
200 120
5 SolarTIF 5 40
6 PV Hi-Tech Solar 5 15
Total 2 777 5 882
* Target 2 000 MW in 2015
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PV Manufacturing Statistics (in the 2015 pipeline)
No. Company Name Capacity
(MW) Employment
Wafer/Solar Cells
1 Comtec Solar International (W) 1 000 139
2 Tetrasun (First Solar) (SC) 100 135
3 Jinko Solar (SC) 500 *
4 JA Solar (SC) 400 700
Total 2 000 974
PV Modules
1 Jinko Solar 450 1 200*
2 Endau XT 75 40
Total 525 1 240
Photographs of Solar PV Installations
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170 kWp, on shopping complex Kuala Lumpur
13.0 MWp, over a Landfill Negeri Sembilan
469.3 kWp, on a Steel Service Centre rooftop, Shah Alam
10.25 MWp Solar Farm at Gemas, Negeri Sembilan
Click to edit Master title style
5.0 MWp
Solar Farm with
Single Axis Tracker
near KL Internation
Airport
BIPV Homes - Examples
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BIPV Homes – Examples (cont’d)
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BIPV car porch
BIPV extended car porch (3 kW)
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Copyright © SEDA Malaysia 2012 60
Thank you
SEDA Malaysia, Galeria PjH, Level 9 Jalan P4W, Persiaran Perdana, Presint 4, 62100 Putrajaya, Malaysia.
Phone : +603-8870 5800 Email: [email protected] Web: www.seda.gov.my