Renewable Energy in Malaysia

Opportunity of Renewable Energy in Malaysia

Malaysia has many renewable energy sources that can be developed such as solar, wind, biomass, hydro, geothermal and tidal wave. Solar energy has been one of the rising technologies in renewable energy industry for Malaysia. One of the technology that is rising rapidly in Malaysia in the Renewable Energy industry is the Net Energy Metering (NEM) of Solar PV System. Coupled with launching of Solar Leasing concept from the Supply Agreement of Renewable Energy (SARE) of Malaysia, the NEM solar system be brought to another height of success in Malaysia. Read more about them here.

Malaysia at Forefront of Renewable Energy in Southeast Asia

SEDA claims that Malaysia is at the forefront in Southeast Asia in managing renewable energy as it has established strong mechanisms for this purpose. Chief operating officer of the Sustainable Energy Development Authority (SEDA), Ir Dr Ali Askar Sher Mohamad said the Malaysian government was committed to encouraging the public to contribute to producing renewable energy by establishing Seda and introducing the Renewable Energy Act 2011, thus making Malaysia a role model.

After we launched the feed-in tariff on Dec 1, 2011, then only the Philippines and Indonesia did the same project. We already have confidence, especially in solar photovoltaics (PV).

Feed-in-Tariff System for Renewable Energy

April 2011 saw Malaysia adopt an Advanced Renewable Tariffs system and further renewable energy targets. A Renewable Energy bill (RE Bill) and a Bill for Sustainable Development Authority (SEDA Bill) were passed by the House of Representatives on 28 April on that year. Among the current eligible resources for the FiT program are biomass, biogas, mini-hydropower and solar energy.

Like successful policies elsewhere, the Malaysian tariff differentiates by technology and derives tariffs based on the cost of generation. The tariffs have apparently been received enthusiastically.

Future Targets Regarding Renewable Energy in Malaysia

The Energy, Science, Technology, Environment and Climate Change Ministry has set a target of 20% of the country's electricity to be generated from renewable sources by 2030, an increase from 2% currently.

“I am very confident (that) the target is definitely achievable by 2030. However, I want to stress that we must not take priority over energy affordability only for the renewable energy (RE) target, it must be a balance between how affordable the electricity versus our adoption of RE,” said the Minister YB Yeo Bee Yin.

Minister Yeo is confident that Malaysia’s Electricity Supply Industry (ESI) transformation programme such as future generation — RE and green energy, grid of the future — that enhance customer experience initiatives, will propel the country, going forward.

Currently, a major determinant of electricity tariff is fuel prices, which depend on global fuel price in addition to system cost, Yeo said.

“That’s why RE is more than just being green; it is to make your tariff much more predictable, of which our electricity right now is hugely dependent on the global fuel price. After the reforms, you can expect a transparent and efficient market structure with more cost reflective tariff,” said Minister Yeo.

Environmental and Economic Benefits of Using Renewable Energy in Malaysia

• Generating energy that produces no greenhouse gas emissions from fossil fuels and reduces some types of air pollution
• Diversifying energy supply and reducing dependence on imported fuels
• Creating economic development and jobs in manufacturing, installation, and more