Malaysia Proposes Comprehensive FITs for 2011
December 10, 2009
by Paul Gipe
The government of Malaysia is considering a comprehensive feed-in tariff program according to a presentation by Ahmad Hadri Haris at a national solar PV conference in Malaysia this past November.
The proposal will be introduced into parliament in 2010 to become part of Malaysia's 10th energy plan covering the period from 2011 to 2015. If passed by parliament, the tariffs will go into effect in early 2011.
The policy described by Haris in his presentation is a true feed-in tariff, or what is called a "gross" feed-in tariff in south Asia. A gross feed-in tariff pays for all the electricity generated as in Germany, France, Spain, Ontario, and Vermont.
Like successful policies elsewhere, the Malaysian proposal includes all renewables, differentiates tariffs by technology, and derives the tariffs based on the cost of generation.
Returns projected by Haris based on the proposed tariffs are 5.1% for building integrated PV, 8.7% for PV on commercial rooftops, and 10.9% for solar PV plants, likely ground-mounted.
Solar yields in Malaysia range from 1,100 kWh/kWDC/yr to 1,500 kWh/kWDC/yr.
Haris' presentation suggested that the feed-in tariff program would add 2% to the average electricity tariff in the country.
First Solar operates a $570 million thin-film solar PV plant in Malaysia. First Solar's PV systems have been used extensively in large-scale PV power plants in Germany and now Ontario under feed-in tariff policies.
Final tariffs, or the tranches, have yet to be determined. The tariffs will be differentiated by technology and project size. The tariffs below are the ranges proposed.
Wind: 21 years, ~$0.07-$0.10 USD/kWh
Solar PV: 21 years, ~$0.37-$0.52 USD/kWh
Solid waste and sewage gas: 21 years, ~$0.09-$0.14 USD/kWh
Biomass: 16 years, ~$0.07-$0.10 USD/kWh
Biogas: 16 years, ~$0.08-$0.10 USD/kWh
Geothermal: 21 years, ~$0.08-$0.14 USD/kWh
Minihydro: 21 years, ~$0.07 USD/kWh
Feed-in Tariff (FiT): Driving Forward Green Technologies & Deployments <http://www.mbipv.net.my/dload/NPVC%202009/Ir.%20Ahmad%20Hadri%20
Haris.pdf> by Ir. Ahmad Hadri Haris
This feed-in tariff news update is partially supported by the Jan David Blittersdorf Foundation in cooperation with the Institute for Local Self Reliance. The views expressed are those of Paul Gipe and are not necessarily those of the sponsors.