Malaysia

(Last update: January 2012/ Source: wind-works.org, seda.gov.my, gadingkencana.com.my, thestar.com.my)

On 5th April 2011, Malaysia adopted a system of Advanced Renewable Tariffs and renewable energy targets differentiated by technology. The Renewable Energy Act 2010 was passed by the Parliament together with Sustainable Energy Development Authority (SEDA) Bill. The latter has been overseeing the implementation of the Act and managing the FiT mechanism eversince. In December 2011, SEDA also released a FIT quota for solar PV to ensure a fairer share system.

The 1% feed-in-tariff (FiT) for the development of renewable energy will now be launched on 1st December 2011 instead of 1st September 2011.

Download the full text version (English) of the Renewable Energy Act here.

Download the full text version (English) of the Sustainable Energy Development Authority (SEDA) Bill here.

Technology

The following renewable energy technologies are eligible for the tariff.

Solar energy: Eligible

Biogas technology: Eligible

Hydro electricity: Eligible
Small hydros

The scheme prioritises electricity generated from indigenous renewable energy resources.

Payment scheme

Tariff calculation

Fixed premium rate payable for each unit of renewable energy sold to Distribution Licensees. The FiT rate differs for different renewable resources and installed capacities. Bonus FiT rate applies when the criteria for bonus conditions are met.

Degression rate

No information found.

Duration of tariff

The duration is based on the characteristics of the renewable resources and technologies.

The duration is 16 years for biomass and biogas resources.

The duration is 21 years for small hydro power and solar photovoltaic technologies.

Finance mechanism

Electricity consumers will contribute 1% of their total electricity bills to the Renewable Energy fund if they used more than 300kWh of electricity per month. The move will affect domestic users who run up bills of more than RM77.

This contribution is on top of the consumers' monthly electricity bills.

Purchase obligation

Under the FiT system, electricity distribution licensees are obliged to buy electricity produced from certain renewable energy producers.

Legal analysis

There currently is no legal analysis of this law.  If you are a lawyer from Malaysia, and interested in submitting an analysis, or providing more up-to-date information about the current status of the renewable energy policy, we would be happy to hear form you. Contact us

More information

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