Understand Malaysia s RE Policy and e-fit Online System that drives the growth of Renewable Energy industries

Transcription

1 Understand Malaysia s RE Policy and e-fit Online System that drives the growth of Renewable Energy industries C F Leong ICT Director, e-fit Online System Sustainable Energy Development Authority Malaysia Ministry of Energy, Green Technology & Water Copyright SEDA Malaysia,

2 Disclaimer The information contained in this PowerPoint slides is for general purposes only. While the Sustainable Energy Development Authority Malaysia ( SEDA Malaysia ) endeavours to keep the information up to date and correct, the information displayed herein is subject to changes and may no longer be accurate after the preparation date. SEDA Malaysia is not responsible for any errors or omissions, or for the results obtained from the use of this information, nor do we make any representation or warranty of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this PowerPoint slides or the information contained in this PowerPoint slides for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will SEDA Malaysia, the Ministry of Energy, Green Technology and Water, the Government of Malaysia, or any of their related corporations, agents, employees or consultants be liable to you or anyone else for any decision made or action taken in reliance on the information in this PowerPoint slides or for any damages whatsoever, including without limitation, special, indirect, or consequential damages arising out of or related to the use or reliance of the information contained in this PowerPoint slides, whether by action in contract, tort or otherwise howsoever. Copyright SEDA Malaysia

3 Presentation Outline Background Malaysian National RE Policy & Action Plan Regulatory Framework The Malaysian Feed-in Tariff Mechanism The Malaysia e-fit Online System Feed-in Tariff Implementation Status Way Forward Renewable Energy Industries Copyright SEDA Malaysia,

4 Background Copyright SEDA Malaysia

5 Technical Potential of Solar PV Population 28.8 million (2012) Lies directly within the sunbelt Technical potential of PV TWh, about 21% of residential and commercial electricity demand in 2005 Copyright SEDA Malaysia,

6 Energy Policies in Malaysia 1975 National Petroleum Policy 1979 National Energy Policy 1980 National Depletion Policy th Fuel Diversification Policy th Fuel Policy 2011 Renewable Energy Act Copyright SEDA Malaysia

7 Renewable Energy Development 8 TH Malaysia Plan ( ) RE as the 5th Fuel Implied 5% RE in energy mix 9 th Malaysia Plan ( ) Targeted RE capacity to be connected to power utility grid: 300 MW Peninsular Malaysia; 50 MW - Sabah Targeted power generation mix: 51% natural gas, 26% coal, 9% hydro, 8% oil, 5% diesel, biomass 1 % (2010) Carbon intensity reduction target: 40% lower than 2005 levels by 2020 RE as of 31 st December 2010 Connected to the utility grid (as of 2011): MW (20 % from 9 th MP target) Off-grid: >1GW (private palm oil millers and solar hybrid) Copyright SEDA Malaysia

8 Status of Solar PV in Malaysia Off-grid PV market focuses on rural electrification especially in Sabah and Sarawak The on-grid PV market was driven by the Malaysia Building Integrated PV (MBIPV) Project ( ) which provided capital subsidy for 2MW PV systems (household + commercial) As of end of 2011, off-grid PV dominates the PV market in Malaysia Off-grid PV 11MW On-grid PV 2.5MW Since then, the Ministry realized in order for solar PV market to grow, there is a need for an integrative renewable energy framework + action plan Copyright SEDA Malaysia,

9 Malaysian National RE Policy & Action Plan Copyright SEDA Malaysia

10 Feed-in Tariff : Government Policy 10 th Jun 2010: 10 th Malaysia Plan (chapter 6) 15 th Oct 2010: National Budget 2011 (paragraph 34) 25 th Oct 2010: Economic Transformation Programme (chapter 6) RE Act & SEDA Act passed in Parliament April 2011, gazetted June 2011 SEDA officially formed 1 Sept 2011; Feed-in Tariff launched 1 Dec 2011 Copyright SEDA Malaysia,

11 National Renewable Energy Policy & Action Plan Approved by Cabinet on 2 nd April 2010 Policy Statement: Objectives: To increase RE contribution in the national power generation mix; Enhancing the utilisation of indigenous renewable energy resources to contribute towards national electricity supply security and sustainable socioeconomic development. Copyright SEDA Malaysia 2012 To facilitate the growth of the RE industry; To ensure reasonable RE generation costs; To conserve the environment for future generation; and To enhance awareness on the role and importance of RE. 11

12 Strategic Thrusts of the National RE Policy Strategic Thrust 5: Create Public Awareness & RE Policy Advocacy Programmes Strategic Thrust 1: Introduce Legal and Regulatory Framework National RE Policy Strategic Thrust 2: Provide Conducive Business Environment for RE Strategic Thrust 4: Enhance RE Research and Development Strategic Thrust 3: Intensify Human Capital Development Copyright SEDA Malaysia,

13 Malaysian National RE Targets Year Cumulative RE Capacity 985 MW 2,080 MW 4,000 MW RE Power Mix 5 % 11 % 17 % Cumulative CO2 avoided 11.1 mt 42.2 mt mt Copyright SEDA Malaysia,

14 Potential Impact of National RE Policy by Year 2020 CO 2 Avoidance At least a total 42 million tonnes could be avoided from 2011 to 2020 CO 2 Emission Mitigation RE Project Loans RE Businesses Green Employment At least RM2.1 billion in savings in external cost expected to mitigate CO2 emissions (RM50 per tonne) At least RM19 billion of loan values estimated for RE projects, which will provide local banks with new sources of revenues > RM 70 billion of RE business revenues generated from RE power plants operation, generating tax income of minimum RM1.75 billion to Government > 50,000 jobs created to construct, operate and maintain RE power plants (15-30 job per MW). Copyright SEDA Malaysia,

15 25,000 National RE Goals (excl EPP-10) 20,000 15,000 Solar PV Solid Waste 2020 Mini Hydro 2.1 GW Biogas Biomass GW 2050: 21.4 GW (73%) 44.2 GWh (24%) GW MW 10,000 5, : 985 MW (6%) 5.4 GWh (5%) 2020: 2,080 MW (11%) 11.3 GWh (9%) 2030: 4,000 MW (17%) 17.2 GWh (12%) Copyright SEDA Malaysia 2012 Year 15

16 Regulatory Framework Copyright SEDA Malaysia

17 SEDA Malaysia promote & implement national policy objectives for RE implement sustainable energy laws including the RE Act & recommend reforms promote private sector investment in sustainable energy sector advise the Minister & Government on all matters relating to sustainable energy measures to improve public awareness implement, manage, monitor & review the Feed- In Tariff system SEDA Malaysia established on 1 st September 2011 under the SEDA Act 2011 act as focal point on matters relating to sustainable energy & climate change matters relating to energy Copyright SEDA Malaysia,

18 Renewable Energy Act 2011 Passed in Parliament: 27 th April 2011 Enforced on 1 st December 2011 An Act to provide for the establishment and implementation of a special tariff system to catalyze the generation of renewable energy and to provide for related matters. Comprises of 9 Parts and 65 Clauses Part I: Preliminary Part II: FiT System Part III: Connection, Purchase and Distributio n of RE Part IV: Feed-in Tariff Part V: Renewable Energy Fund Part VI: Informatio n Gathering Powers Part VII: Enforceme nt Part VIII: General Part IX: Savings and Transitional Copyright SEDA Malaysia,

19 Subsidiary Legislations RE (REPPA) Rules 2011 RE (Criteria for Renewable Resources) Regulations 2011 RE (Allocation from Electricity Tariffs) Order 2011 RE (Technical and Operational Requirements) Rules 2011 RE (Recovery of Moneys by Distribution Licensee) Rules 2011 RE (Feed-in Approval and Feed-in Tariff Rate) Rules 2011 Renewable Energy Act 2011 RE (Administrative Fees) Rules 2011 Copyright SEDA Malaysia,

20 Feed-in Tariff Mechanism Electricity produced from indigenous RE resources to be sold to power utilities at a fixed premium price and for specific duration Provides fixed revenue stream for installed system Pay for electricity produced: promotes system owner to install good quality and maintain the system With suitable degression rate, manufacturers and installers are promoted to reduce prices while enhancing quality Copyright SEDA Malaysia,

21 Malaysia s Feed-in Tariff system Guarantee access to the grid and setting a favourable price per unit of RE Distribution Licensees to buy electricity produced at a FiT rate fixed Distribution Licensees to pay for a specific duration Distribution Licensees claim back the payment made plus a small administrative fee from SEDA Malaysia Copyright SEDA Malaysia,

22 Feed-in Approval & Feed-in Tariff Rules 2011 Individuals Companies Other entities Malaysians Foreign individuals: limited to Solar PV All legally registered companies and businesses Direct ownership Shareholding limitations: Foreign Distribution within its distribution area body corporate society co-operative society firm local authority Copyright SEDA Malaysia,

23 Power System Study (PSS) For RE Installation > 180kW (grid-connected) PSS is required to asses the potential impact of the distributed generation on the planning and operation of the Distribution Licensee s transmission system For RE installation > 72kW up to 180kW Connection confirmation check (CCC) is required Power system study is being conducted by the Distribution Licensee at a fee Copyright SEDA Malaysia,

24 Distribution Licensee obligation Distribution Licensees are legally bound to not only purchase renewable energy but also prioritise such purchases over electricity generated using non-renewable resources. If failure, a penalty will be levied on the distribution licensee Specific time-frames set for all parties involved with established client charters. Contractors/service providers and feed-in approval holders to set realistic target dates for the feed-in tariff commencement date Copyright SEDA Malaysia,

25 FiAH s Commitment Under RE Power Purchase Agreement, Feed-in Approval Holders (FiAHs) must provide 70% of their declared energy yield based on an average annual output For renewable energy installation with net export capacity > 5MW, liquidated damage will be imposed by distribution licensee if the declared annual energy output falls below 70% Copyright SEDA Malaysia,

26 RE Power Purchase Agreement Type of renewable energy power purchase agreement (REPPA) applicable to each Feedin Approval holder would depend on: the renewable resource utilised by; the proposed installed capacity of the renewable energy installation to be installed. Different renewable energy power purchase agreements in different circumstances. Copyright SEDA Malaysia,

27 RE Power Purchase Agreement Renewable energy power purchase agreements and Feedin Approvals can be transferred to new house owners with prior consent from SEDA Malaysia. Upon the expiry of the effective period of a renewable energy power purchase agreement, feed-in approval holders may apply for new feed-in approvals. However, if grid parity has been achieved, feed-in approval holders will have to negotiate directly with the distribution licensee. Copyright SEDA Malaysia,

28 The Malaysian Feed-in Tariff Mechanism Copyright SEDA Malaysia,

29 Malaysia s FiT Mechanism Residential sector Electricity bills Commercial sector Distribution Licensee REPPA {1% for RE Fund} Industrial sector {(FiT displaced cost) + admin fee} RE Fund Fee {FiT payment } License FiT fee RE Act 2011, SS, REPPA {FiT application } {FiT payment} Solar BIPV buildings Copyright SEDA Malaysia, 2012 Bank RE developers Bank 29

30 RE Resources eligible for FiT Biogas including landfill gas & sewage Biomass including solid waste Small hydropower Solar photovoltaic REPPA for 16 years REPPA for 21 years Copyright SEDA Malaysia,

31 2012 Feed-in Tariff Rates Technology / Source FiT Duration Range of FiT Rates (RM/kWh) Annual Degression Biomass (palm oil waste, agro based) ( ) 0.5% Biogas (palm oil waste, agro based, farming) ( ) 0.5% Mini Hydro ( ) 0% Solar PV & PP ( ) 8.0% Solid waste & Sewage 16 Copyright SEDA Malaysia, ( ) 1.8% 31

32 Source of RE Fund for FiT 20.2% 15.2% 1% 1.0% 25.3% 38.4% Subsidized Fuel for Power Generation Generation cost Transmission & Distribution Cost Customer Service Charge FiT levy Source of Funding 2011 additional 1% tariffs collection from electricity bills Every RM100/month RM1 for Renewable Energy Additional 1% (proposed in 2013) The size of RE fund will determine the RE target for Malaysia Benefit polluters pay concept will not affect 75% of electricity kwh/month) encourages Energy Efficiency and Demand Side Management Copyright SEDA Malaysia

33 FiT Implementation: Accounts & Payments 2 separate accounts with DL: Electricity consumption bill (Consumption Meter): consumer pays to DL for kwh electricity consumed. FiT bill (Generation Meter): DL pays to consumer for gross kwh electricity generated. Thus, 2 separate contracts with DL. RM1.75/kWh RM0.31/kWh 33

34 The Malaysian Feed-in Tariff Online System (e-fit System) Copyright SEDA Malaysia,

35 Features of e-fit Online System Real Time 1 st Come, 1 st Served e-fit Online System Any Time, Any Where Transpa rent Green (Online) Unbiased, Fair Copyright SEDA Malaysia,

36 Real time Quota Information Online Quota with Real-time Quota Availability Copyright SEDA Malaysia,

37 1 st come 1 st served No discriminati on based on color, creed, location or political affiliation No preferential treatment based on family or political connections No allocation based on the amount a person or State contributes to the RE Fund Feed-in Tariff quota allocation is on a firstcome-firstserved basis. Copyright SEDA Malaysia,

38 Installed Capacity Limits For Solar PV installation, For Biogas, Biomass or Small Hydro installations, Small system with installed capacity up to 12kW by Individual applicant System with installed capacity up to 500kW by Non- Individual applicant System with installed capacity larger than 500kW but not more than 5MW by Non- Individual applicant eligible producers can apply for installed capacity up to 30 MW. All Feed-in Approval applications will be treated transparently and on equal basis according to the category of the installation such as residential, commercial, industrial, or power plant type, and whether they are roof or façade mounted, or ground mounted. Copyright SEDA Malaysia,

39 New Features of e-fit Transfer of Feed-in Approval Trend Analysis of RE Plants Actual Cost Request for Change in Project Milestones New Features of e-fit Request for Change in scheduled FiTCD Feed-in Tariff for Community Increase in Installed Capacity (MW) Feed-in Tariff of combined Biomass & Biogas resources 39

40 Additional Conditions for Solar PV Limit of 30MW Solar PV accumulative installed capacity per RE Developer/non- Individual Applicant Limit of 5MW Solar PV accumulative installed capacity for each shareholder; direct or indirect Classification of solar PV category Individual up to 12kW Non-Individual up to 500kW Non-Individual more than 500 kw 40

41 Components of e-fit Online System Core Function Feed-in Approval applications Digital Dashboard Show available capacities List of applications & status Resources Guidelines Trainings, events Publications Other links RE Industry Directory Links to Partnership RE Pricing charts FAQs Installed RE Applications Announcements Contact Us Supplementary Functions Copyright SEDA Malaysia, 2012 Page 41

42 Concept of e-fit Application Online Web Viewing on FiT information Online Web Application for Public + e- payment for fee Backend Office Processing of Applications for SEDA Partner Logins for Verification RE Developers Insurance Companies (proposed) Suruhanjaya Tenaga TNB/SESB Banks (proposed) Secured access Copyright SEDA Malaysia, 2012 Page 42

43 SEDA s Official Portal ( Copyright SEDA Malaysia,

44 FiT Rates for Biogas Copyright SEDA Malaysia,

45 FiT Rates for Biomass Copyright SEDA Malaysia,

46 FiT Rates for Small Hydro Copyright SEDA Malaysia,

47 FiT Rates for Solar PV Copyright SEDA Malaysia,

48 Changes to FiT rates for Solar PV [effective from 28 March 2013] Copyright SEDA Malaysia

49 New Degression Rate for Solar PV Renewable energy installation having an installed capacity of 1. up to and including 4 kilowatts 2. above 4 kilowatts, and up to and including 24 kilowatts 3. above 24 kilowatts, and up to and including 72 kilowatts 4. above 72 kilowatts, and up to and including 1 megawatts 5. above 1 megawatts kilowatts, and up to and including 10 megawatts 6. above 10 megawatts kilowatts, and up to and including 30 megawatts Basic FiT rate Before 28 March 2013 After 28 March 2013 RM % 8% RM % 8% RM % 20% RM % 20% RM % 20% RM % 20% 49

50 New Degression Rate for Bonus Renewable energy installation having any one or more of the following criteria in addition to basic rate Bonus rate Before 28 March 2013 After 28 March use as installation in building or building structures +RM % 8% 2. use as building materials +RM % 8% 3. use as locally manufactured or assembled solar photovoltaic module 4. use of locally manufactured or assembled solar inverters +RM % 0% +RM % 0% 50

51 2013 FiT Rates for Solar PV Copyright SEDA Malaysia,

52 Installed & Export Capacity

53 Declared Annual Availability Copyright SEDA Malaysia,

54 FiT Application Detail RE Project Information Contractor / Service Provider Technical Detail Project Workplan Supporting Documents Financial Information Statutory Declaration Copyright SEDA Malaysia,

55 Submit FiT Application Generate Invoice If No Quota Available, Stop If Quota Available, Submit FiT Application Compute RE Fund System Pre- Allocates Quota Copyright SEDA Malaysia,

56 FiT Verification Process Generate FiA Certificate 56

57 FiT Realization Processes User Registration Feed-in Tariff Application Feed-in Approval REPPA signing with DL Construction / Installation Financing & Procurement ST Provisional License Register REPPA with SEDA ST Permanent Generating License Testing & Commissioning FiTCD SEDA s verify Actual CAPEX & OPEX Monitor Energy Production Distribution Licensee Pay FiT Commence FiTCD SEDA s confirmation 57

58 Status of Feed-in Tariff Implementation as at 31 st March 2013 Copyright SEDA Malaysia,

59 Feed-in Approval Applications Copyright SEDA Malaysia,

60 Status as at 31 March 2013 Copyright SEDA Malaysia,

61 Installed Capacities in Operation Copyright SEDA Malaysia,

62 Approved vs Target Copyright SEDA Malaysia,

63 Cumulative Target Copyright SEDA Malaysia,

64 Possible CO2 Avoidance upto 2032 Copyright SEDA Malaysia,

65 General Observation e-fit developed and designed after extensive study of other Feed-in Tariff systems in other countries, especially Germany and Italy e-fit is a unique system since it is the only system that allocates quota first without any human intervention Human touch comes in only to verify details of the Feed-in Approval applications To serve the RE industry better, the system is still undergoing enhancement It has been a learning experience for both SEDA Malaysia and the RE Industry since the launch of the Feed-in Tariff programme in Malaysia Copyright SEDA Malaysia,

66 Critical Success Factors Malaysia uses legal instruments for Feed-in Tariff implementation via the RE Act 2011 Guaranteed Access to the grid Distribution Licensees legally obliged to accept all electricity generated by RE producers FiT rates High enough to produce ROI + reasonable profit Fixed for a period (certainty & provide clear investment environment) Adequate "degression" to promote cost reduction to achieve grid parity RE Fund To pay for the FiT rates & guarantee payment for FiT contract period Established under the RE Act 2011; initial grant RM300million by Government of Malaysia Source - 1% collection from consumers electricity bills since December 2011 Will not affect low income consumers (<300 kwh/month) Polluters pay concept Encourages Energy Efficiency and Demand Side Management Copyright SEDA Malaysia,

67 Way Forward Click to edit Master title style Copyright SEDA Malaysia,

68 100,000 Solar Rooftop Programme Sustainable Energy Development Authority (SEDA) Malaysia Chairman Tan Sri Dr Fong Chan Onn told a press conference: We have allocated the 2,000-household quota this year, and next year we will allocate a further 10,000-households. Our target is to encourage the massive involvement of the public in solar power systems. Source: Green Prospect Asia (August 2012) Copyright SEDA Malaysia,

69 Way Forward Identifying new RE resources Comprehensive RE wind mappingcollaboration with University Detailed study on the potential of geothermal energy in Perak Capacity building Solar collaboration with 2 training centres on ISPQ Accredited Design & Installation Grid - Connected PV Systems Course Due diligence on training for off-grid courses Hydro collaboration with Perak Hi Tech Park & Brodarski Institute Croatia Introduction To Small Hydro Technology Feasibility Studies, Plant Design, Operation & Maintenance Issues For Engineers Course Biomass Identifying an institute for biomass capacity building due diligence Copyright SEDA Malaysia,

70 SEDA Malaysia is the first organization in ASEAN to obtain ISP-accredited PV training course 10 day Theory + Practical + 4-hr Exam Conducted by both UiTM & SHRDC RM8,000 per pax (local), 3,200 (international) Competency Development: Grid-Connected PV Systems Training 70

71 Competency Development: Off-grid PV Training Off-Grid PV Training is also ISP accredited Joint effort with Universiti Teknologi MARA 10 day Theory + Practical + 4-hr Exam RM8,500 per pax (local), 3,200 (intl) 71

72 Solar PV Industries Copyright SEDA Malaysia

73 Company AUO- SunPower First Solar Flextronics MEMC Panasonic Hanwha Q-Cells Robert Bosch Product Wafer & cells CdTe Modules PV module assembly Wafer Wafer, cells & modules Cells Wafer & cells Tokuyama Polysilicon Nameplate Capacity 505 MW (2012) 724 MW (2013) MW (2012 & 2013) 282 MW (2012 & 2013) 300 MW (2012) 550 MW (2013) Employment/ Jobs Creation (2012) (2013) (2012 & 2013) 595 (2012) 445 (2013) 420 (2012) 550 (2013) State Malacca Kedah Johor Sarawak 300 MW (2013) (2013) Kedah 800 MW (2012) 917 MW (2013) W: 800 MW (2013) C: 620 MW (2013) tonnes (2013) 700 (2012) 800 (2013) Selangor Status Up scaling operation On-going On-going Up scaling operation Operational 2013 Up scaling operation 2 (2012) Penang Put on hold 421 (2012) 450 (2013) Sarawak Operational

74 PV Systems in Malaysia 1.01 MW, Kemuning Sumikin Bussan Sdn Bhd, Selangor 74

75 Energy Commission HQ, 71.5 kwp 75

76 Malaysia Greentech Corp. (GEO) 92 kwp (4 different technologies) 76

77 Penaga Hotel, kwp 77

78 Residential houses (3 to 10kWp) 78

79 Green School Projects (5 kwp) each) 79

80 Residential: Solar Enclave Setia Eco Park, Malaysia Copyright SEDA Malaysia

81 Commercial : Solar PV on KLCC Suria, Malaysia Copyright SEDA Malaysia

82 8 MW Solar PV Farm 82

83 Biomass Plant Copyright SEDA Malaysia,

84 Biogass Plant Copyright SEDA Malaysia,

85 Thank you SEDA Malaysia, Galeria PjH, Level 9 Jalan P4W, Persiaran Perdana, Presint 4, Putrajaya, Malaysia. Phone : fit@seda.gov.my Web: Copyright SEDA Malaysia