Malaysia aims to implement feed-in tariffs (FIT) for renewables later this year, a move that will hasten the rise of green energy capacity and reduce carbon emissions, a local official has said.
Ir Ahmad Hadri Haris, chief technical advisor for the Malaysia Building Integrated Photovoltaic project, says “The FIT is anticipated to be passed into law in the third quarter.
“We are preparing the infrastructure and implementation procedures.”
The FIT mechanism prioritises electricity generated from indigenous renewable energy resources to be purchased by power utilities at a fixed premium price for a specific duration.
Countries such as Germany, Italy, Spain and Thailand have successfully adopted FIT mechanisms.
Ir Hadri says Malaysia’s renewables market has failed to grow significantly due to the power utilities having a monopoly.
“If we never address this issue it will never become market driven,” Ir Hadri told delegates at an industry conference held in Singapore.
“The Malaysian government is motivated to address this issue and turn around this deadlock.”
Dato’ Sri Peter Chin, Minister for Energy, Green Technology and Water, cautioned that FIT is not designed to allow excessive profiteering by renewables businesses, but to remove market barriers for the public to work alongside the government to generate green and sustainable electricity.
The FIT policy falls under the country’s National Renewable Energy Policy and Action Plan.
It could, on a cumulative basis, help Malaysia stop emitting 42m tonnes of carbon dioxide by 2020.
This will be achieved if the country generates at least 2 gigawatts in renewables.
