Launch of Malaysian FIT prompts flurry of PV proposals


Malaysia aims to install three gigawatts worth of renewables by 2020. Of this, one third is expected to come from photovoltaics. On December 1, the country’s first FIT system, monitored and administered by the Sustainable Energy Development Authority Malaysia (SEDA Malaysia) went live under the Renewable Energy Act 2011.

According to Pn Badriyah Abdul Malek, CEO of SEDA Malaysia, "when the e-FiT online system was released to public, the traffic to the servers was beyond what was anticipated during the stress test conducted on the system. There were over 6,000 incoming traffic which flooded the gateway to our servers and our ICT team had to change the queuing logic for the server."

Overall, 229 applications for renewable energy projects worth 335 MW – for biomass, biogas, small hydro and photovoltaics – were received within two days. Photovoltaic plans represented 143.78 or 201 projects. "Not surprisingly, the quota for non-individuals for solar PV was gone within the first two hours …,"said Pn Badriyah. This leaves roughly nine MW in the 2012 to 2014 quota.

The quotas which are not fulfilled will be reviewed every six months by the SEDA Malaysia, in order to see how they will be utilized for the next half year. In a statement released, it was said, "In addition, SEDA Malaysia will also continuously monitor the market price trend of these renewable resources so the FIT rates are adjusted to reflect current condition as provided under Section 18 of the Renewable Energy Act 2011."

Once the FIT verification process has been completed for each submitted proposal – applicants have 14 days to complete the process, which includes submission of documentation, application fee for systems larger than 72 kilowatts (kW) – SEDA Malaysia will then issue a feed-in approval (FIA).

The new photovoltaic FITs for 2011 and 2012 are as follows:

  • Four kW and below, RM 1.2300/kWh (around €0.29; $0.39)
  • 4.1 kW to 24 kW, RM 1.2000/kWh
  • 24.1 kW to 72 kW, RM 1.1800/kWh
  • 72.1 kW to one MW, RM 1.1400/kWh
  • 1.1 MW to 10 MW, RM 0.9500/kWh
  • 10.1 MW to 30 MW, RM 0.8500/kWh

Bonus FIT rates will also be awarded as follows:

  • Use as an installation in buildings or building structures., + RM 0.2600/kWh
  • Use as building materials, + RM 0.2500/kWh
  • Use of locally manufactured or assembled photovoltaic modules, + RM 0.0300
  • Use of locally manufactured or assembled solar inverters, + RM 0.0100