Putrajaya, [Thursday] (21st June 2012):
Sustainable Energy Development Authority Malaysia (SEDA Malaysia) today announces the new renewable energy (RE) quota under the Feed-in Tariff (FiT) Programme will only be released in Q4 2012. Under the FiT Programme, the new RE quota is supposed to be released on half yearly basis and although the next opening is expected to be in mid-2012, updates within the FiT programme are required due to rapid changes especially within the solar photovoltaic (PV) industry.
“SEDA Malaysia has received directive from the Ministry of Energy, Green Technology and Water to review the degression rates especially of solar PV in view of the recent drastic drop in prices of solar PV modules caused by both the surplus in supply of PV modules from China and the severe reduction in the solar PV FiT rates for many European countries”, said Tan Sri Dr Fong Chan Onn, Chairman of SEDA Malaysia.
In addition to the need to review the degression rates, Tan Sri Dr Fong said SEDA Malaysia is also considering amending some of the rules and regulations which are in place especially the Technical and Operational requirements to ensure the RE stakeholders know their respective roles in the FiT mechanism.
Contrary to some concerns raised by the investors on this delay, “the delay in opening of new RE quota will not affect existing feed-in approval holders’ renewable energy power purchase agreement (REPPA) and their financing arrangements with their banks”, said Pn Badriyah Abdul Malek, Chief Executive Officer SEDA Malaysia.
Pn. Badriyah also informed that SEDA Malaysia is undertaking studies of geothermal and wind mapping in the country. The findings from the studies will also assist SEDA Malaysia in determining the FiT rates for these resources. With this new initiative, Malaysia will have a better profile of RE resources which could be developed.
There will be some changes to the e-FiT Online System as a result of the changes in the rules and regulations; however the public will be given an opportunity to attend tutorial classes which will be conducted in the major cities before the next opening of the RE quota. SEDA Malaysia will make formal announcement on schedule of the tutorial classes, date of the opening of new quota for all RE sources and the revised degression rates.