leehwa writes: Renewal, Sustainable Energy and FiT (Feed-in-Tariff)

Someone was asking me about it and I have to admit it, I know nothing about sustainable energy till I read some recent articles in the newspaper. Still do not know much, but enough for me to appreciate what the Renewal Energy Act 2011 and the Sustainable Energy Development Authority (Seda) Act 2011 is about.

The Renewal Energy Act 2011 purview is on energy management, Sustainable Energy Development Authority (Seda) Act 2011is on implementation and management of FiT.

These 2 Acts put Malaysia into a new phase of renewal energy. It is a start however small it is, a step forward to sustaining our energy requirements, and renewal energy is heading toward a target share of 5.5% of our total energy needs by 2015.

Our power or energy generation, currently dependant on oil, gas, coal and hydro will now have an additional RE (renewal energy) source, that could be generated either from biogas, biomass, small hydropower or solar photovoltaic.

As from 1^st December, consumers of more than 300 kWh a month will have an additional 1% feed-in-tariff (FiT) charge on their electricity bill.

A ‘feed-in-tariff’, is an incentive scheme that collects the 1% (in Malaysia) charge from consumers and uses it to pay a premium price above our current utility charges (by TNB) to anybody who is producing or generating renewal energy. This is to encourage the adoption of renewal energy. The renewal energy is generated and upon signing an agreement between both parties will be fed into the energy grid of the electricity utility company.

Modus Operandi

If you intent to produce or generate renewal energy at your premises, be it home, office or factor, you will need to invest substantially in a renewal energy system.

You will need to apply to Seda for the feed-in- approval license, (Feed-in-Tariff (FiT)). Once the application is duly verified in compliance with requirements of the Act, you will receive a FIA certificate.

Thereafter sign an agreement with your distribution licensee for connection of the renewal energy to a supply line connection point. The electricity utility company (TNB) or distribution licensee is obliged to buy the renewal energy from you (at a pre-set premium price) and feed the renewal energy into their energy grid.

The feed-in-approval holder will have to submit a certified copy of the agreement to the Authority (Sustainable Energy Development Authority Malaysia) for registration.