Feed in Tariff Malaysia: A Brief History

History of FiT in Malaysia

As of 2010, FiT programme has been implemented in more than 50 countries, including Malaysia. Parliament Malaysia has approved a very sophisticated feed in tariff system to develop renewable energy resources. But this did not happen immediately, though. In as early as year 2004, FiT programme has already been introduced to Malaysia, but it was only then in 2011 that the two sustainable energy laws have been passed, resulting to the country achieve energy independence and show its support in lessening climate change.

The following are significant dates leading to the implementation of FiT policy in Malaysia:

In February 2004, the Malaysia Building Intergrated Photovoltaic (MBIPV) Project submitted a document to United Nations Development Program and Global Environment Facility that introduces the FiT as a possible renewable energy policy.

MBIPV Project presented a Best Policy for RE/PV in Malaysia in January 2008 to the National Steering Committee which emphasizes the feed in tariff.

By May 2009, MBIPV Project emphasized the need for an RE Law to be able to effectively implement feed in tariff using a presentation (RE Policy and Action Plan) to the National Steering Committee.

In April 2010, the Cabinet has approved the National RE Policy.

In June 2010, feed in tariff was included in the 10th Malaysia Plan.

In October 2010, feed in tariff was included in the 2011 National Budget.

December 2010, was the first reading of both the RE and SEDA Bills in Parliament.

In April 2011, Malaysian House of Representatives finally passed the Renewable Energy (RE) Bill creating the FiT policy and the Sustainable Energy Development Authority (SEDA) Bill, which was also approved by the Malaysian Senate. Feed in Tariff Malaysia offers payments of USD 0.402/kWh for solar PV plants smaller than 4kW and USD 0.278/kWh for plants between 10MW and 30MW.

Like many other countries that implemented the program, Malaysia has launched a full-featured Advanced Renewable Tariff program with specific targets for each technology every year. One example is the country’s quota for 2011 for Solar PV is 29MW and an additional 46MW in 2012.

By year 2020, the country expects to have more than 3000MW of new renewable installed in which 1250MW will be coming from Solar PV, and 1065MW from biomass.

Sources: seda.gov.my