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Business
Wednesday September 1, 2010
Emphasis on developing biomass, biogas
By CECILIA KOK
mailto:cecilia
They are given more opportunity to be = developed=20 as renewable energy under feed-in tariff policy
PETALING JAYA: Biomass and biogas will be given more opportunity to = develop=20 as renewable energy (RE) resources during the first 10 years of the=20 implementation of feed-in tariff (FiT) in Malaysia.
This is based on the quotas set for the various RE technologies under = the=20 proposed FiT policy by the RE/Malaysia Building Integrated Photovoltaic = (MBIPV)=20 national project team under the Ministry of Energy, Green Technology = & Water=20 (see table 1).
Nevertheless, this does not mean that other RE technologies will be = given=20 less focus under the proposed policy.
The quotas allocated for each RE technology each year is to set a = limit on=20 the amount of electricity that can be paid for by the Government. It is = based on=20 the availability and cash flow management of the RE fund that will be = put under=20 the management of the Sustainable Energy Development Authority, or Seda. = This is=20 to ensure that the RE fund can be managed more effectively.
=93It is important that we manage the RE fund in an effective manner = to ensure=20 that FiT payments can be honoured over its entire duration and propel RE = development in the country to achieve their maximum potentials in the = short and=20 long terms,=94 RE/MBIPV national project leader and chief technical = adviser Ir=20 Ahmad Hadri Haris told StarBiz in an email.
![3D""=20](3D"http://biz.thestar.com.my/archives/2010/9/1/business/p6-table1.JPG=)
So far, the RE resources that have been approved under the proposed = FiT are=20 biomass (from plantation, agriculture, forestry residues and solid = waste);=20 biogas (from plantation, agriculture, forestry residues, animal waste, = landfill=20 gas and sewage gas); mini-hydro; and solar photovoltaic (PV).
As the cost of solar technology progressively reduces over the years = of the=20 FiT implementation, solar energy would supersede other technologies to = become=20 the most important renewable resources; and this was expected to happen = after=20 2020, Ahmad Hadri said.
FiT forms part of the RE Act that will be tabled before the = Parliament in=20 October. It is part of the Government=92s plan to boost RE contribution = to=20 Malaysia=92s electricity-generation mix from less than 1% in 2009 to = around 5.5%=20 by 2015 (see table 2).
If passed by the end of the year, the mechanism is set to take effect = from=20 the second quarter of next year.
And with the policy in place, individuals or business owners can then = sell=20 electricity they generated from renewable resources to utility companies = such as=20 Tenaga Nasional Bhd and Sarawak Energy Bhd at a fixed premium rate for a = specific period.
![3D""=20](3D"http://biz.thestar.com.my/archives/2010/9/1/business/p7-table2.JPG=)
As of now, the indicative FiT rates for every kilowatt of RE = generated are as=20 follows: 27 to 31 sen for biomass; 28 to 32 sen for biogas; 23 to 24 sen = per=20 mini-hydro; and 85 sen to RM1.23 for solar PV. According to Ahmad Hadri, = the=20 indicative rates are still subject to change unless the RE Act is = passed.
To participate in the FiT system, individuals or industries need to = install=20 two meters =96 one for power sold and the other for consumption. The = meters will=20 be read at the end of every month, and two bills will be issued =96 one = stating=20 the amount of renewable energy users generated and the other stating the = amount=20 of electricity from the main grid that users have consumed. Users will = have to=20 pay the amount due to the utility company for the electricity consumed, = while=20 the utility company will pay users for the renewable energy = generated.
The Government believed that the FiT system would encourage the = growth of=20 renewable energy usage multi-fold from the estimated 55 megawatt (MW) to = one=20 gigawatt (GW) by 2015 and 4GW by 2030. That is in line with its aim to = minimise=20 the need for fossil-fuel power plants and reduce carbon = emission.
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