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Malaysia considers changes to feed-in tariff due to over-subscription of PV Rooftop PV project | Asia Pacific

Malaysia considers changes to feed-in tariff due to over-subscription of PV Rooftop PV project

Malaysia's Sustainable Energy Development Authority (SEDA) reports that the nation has supported 140 MW of solar photovoltaic (PV) capacity through its new feed-in tariff (FiT), out of a total of 312 MW contracted for all renewable energy sources.

SEDA states that it is "very likely" to take corrective measures to adjust FiT levels or degression rates before the next round of quotes from July to August 2012, calling the large amount of PV generation the "wrong signal" for the market.

"The concept of the FiT in Malaysia is that we should exhaust renewable resources that demand less per kilowatt hour (kWh) to fund, meaning we should exhaust the technical potential for small hydro, biomass and biogas before moving big time into solar PV where the tariff is highest among other RE sources," stated SEDA CEO Badriyah Abdul Malek.

Applications for PV generation represented 348 of 377 applications for the FiT program, and the quota for non-individual PV was filled within less than three hours following the opening of the application window on December 1st, 2011.

SEDA notes that Malaysia's National Renewable Energy Policy and Action Plan has identified other renewable energy resources to be developed as well as PV.

SEDA: PV IRRs not excessive

SEDA has suggested that the reason for the large amount of PV generation could be that it has less administrative barriers compared to other forms of generation. The organization notes that small hydro plants can require at least 30 signatures to get all the necessary approvals, and that it can take up to 36 months to build small hydro and biomass plants.

The organization also states that application data reveals that FiT rates for PV are not excessive compared to other resources, citing a less than 11% internal rate of return (IRR) for PV plants.


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Posted by Gloria Llopis | 2012-05-23