The feed-in-tariff (FiT) for the development of renewable energy (RE) will kickstart on Sept 1, according to Energy, Green Technology and Water Ministry secretary-general Datuk Loo Took Gee.
“We are in the midst of setting up the (RE) agency and by then it should be ready to implement the FiT. Currently, it is run by a shadow cabinet,” she said at the Economic Transformation Programme (ETP) progress update yesterday.
In April, Parliament passed both the Renewable Energy Act 2010 and Sustainable Energy Development Authority (Seda) Bill. The RE Act would focus on RE while the second act was to empower the Seda which will oversee the implementation of RE and to manage the FiT mechanism.
Under the initial plan, electricity tariffs will be hiked by 1% to be fed into a RE fund to cover cost associated with the FiT scheme.
However, Loo explained that there would be no more tariff adjustment to cover the FiT scheme but it would be taken from the recent tariff hike to be fed into the RE fund.
Last month, the Government raised the price of gas by 28% and electricity tariffs by an average of 7.12%, although about 75% of households in Peninsular Malaysia will remain unaffected.
StarBiz reported that at a recent briefing held by the special division in the ministry, 300 people turned up - more than twice the expected number - to hear presentations by officials on details of the mechanics of the FiT.
Tentatively, the combined quota for renewable energy for 2011 is 111MW for all renewable energy technology.
Loo said the ministry would embark on a Sustainability Achieved via Energy Efficiency as part of the ETP projects to improve energy efficient appliances.
