Feed-in Tariff Mechanism : Malaysia s Choice to Catalyst Renewable Energy Growth & Policy Updates on Solar PV

Transcription

1 Feed-in Tariff Mechanism : Malaysia s Choice to Catalyst Renewable Energy Growth & Policy Updates on Solar PV Leong CF ICT Director, e-fit Online System Sustainable Energy Development Authority Malaysia Ministry of Energy, Green Technology & Water Copyright SEDA Malaysia,

2 Disclaimer The information contained in this PowerPoint slides is for general purposes only. While the Sustainable Energy Development Authority Malaysia ( SEDA Malaysia ) endeavours to keep the information up to date and correct, the information displayed herein is subject to changes and may no longer be accurate after the preparation date. SEDA Malaysia is not responsible for any errors or omissions, or for the results obtained from the use of this information, nor do we make any representation or warranty of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this PowerPoint slides or the information contained in this PowerPoint slides for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will SEDA Malaysia, the Ministry of Energy, Green Technology and Water, the Government of Malaysia, or any of their related corporations, agents, employees or consultants be liable to you or anyone else for any decision made or action taken in reliance on the information in this PowerPoint slides or for any damages whatsoever, including without limitation, special, indirect, or consequential damages arising out of or related to the use or reliance of the information contained in this PowerPoint slides, whether by action in contract, tort or otherwise howsoever. Copyright SEDA Malaysia

3 Presentation Outline Background Malaysian National RE Policy & Action Plan Regulatory Framework The Malaysian Feed-in Tariff Mechanism The Malaysia e-fit Online System Feed-in Tariff Implementation Status 2016 Solar PV Degression & Quota Allocation More Solar PV projects PV Industry Copyright SEDA Malaysia,

4 Background Copyright SEDA Malaysia

5 Technical Potential of Solar PV Population 28.8 million (2012) Lies directly within the sunbelt Technical potential of PV 7.8 TWh, about 21% of residential and commercial electricity demand in 2005 Copyright SEDA Malaysia,

6 Definition of Renewable Energy Renewable Energy (RE) is any form of primary energy from recurring and non-depleting indigenous resources. Renewable resources means the recurring and non-depleting indigenous resources or technology as set out in the first column of the Schedule of the RE Act

7 Energy Policies in Malaysia 1975 National Petroleum Policy 1979 National Energy Policy 1980 National Depletion Policy th Fuel Diversification Policy th Fuel Policy 2011 Renewable Energy Act Copyright SEDA Malaysia

8 Renewable Energy Development in Malaysia 8 TH Malaysia Plan ( ) 9 th Malaysia Plan ( ) 10 th Malaysia Plan ( ) 11 th Malaysia Plan ( ) RE introduced as the 5th Fuel Implied 5% RE in energy mix Targeted RE : 300 MW Peninsular Malaysia; 50 MW - Sabah Connected to the utility grid: 61.2MW (17% from 9 th MP target through Small Renewable Energy Programme (SREP) Cabinet approved National RE Policy & Action Plan (October 2010) Enactment of RE Act 2011 & SEDA Act 2011 (27 & 28 April 2011) Establishment of SEDA, implemented Feed-in Tariff on 1 st Dec : Energy mix 43% coal, 40% gas, 14% large hydro, 2% RE, 1% oil Target energy mix of 53% coal, 29% gas, 15% large hydro, 3% RE. Target RE (FiT) capacity of 2,080 MW Introduce Net Energy Metering (NEM) 8

9 Status of Solar PV in Malaysia Off-grid PV market focuses on rural electrification especially in Sabah and Sarawak The on-grid PV market was driven by the Malaysia Building Integrated PV (MBIPV) Project ( ) which provided capital subsidy for 2MW PV systems (household + commercial) As of end of 2011, off-grid PV dominates the PV market in Malaysia Off-grid PV 11MW On-grid PV 2.5MW Since then, the Ministry realized in order for solar PV market to grow, there is a need for an integrative renewable energy framework + action plan Copyright SEDA Malaysia,

10 Malaysia: Electricity Generation Mix Source: 11 th Malaysia Plan (2015) Population (2015) : 31m GDP per capita (2014) : US$10,566 Area : 329,847 km² Installed electricity generation capacity (2013): 29,748MW (81% in Peninsular M sia, 11.6% in Sarawak, 7.6% in Sabah) 10

11 Malaysian National RE Policy & Action Plan Copyright SEDA Malaysia

12 National Renewable Energy Policy & Action Plan Approved by Cabinet on 2 nd April 2010 Policy Statement: Objectives: To increase RE contribution in the national power generation mix; Enhancing the utilisation of indigenous renewable energy resources to contribute towards national electricity supply security and sustainable socioeconomic development. Copyright SEDA Malaysia 2012 To facilitate the growth of the RE industry; To ensure reasonable RE generation costs; To conserve the environment for future generation; and To enhance awareness on the role and importance of RE. 12

13 Strategic Thrusts of the National RE Policy Strategic Thrust 5: Create Public Awareness & RE Policy Advocacy Programmes Strategic Thrust 4: Enhance RE Research and Development Strategic Thrust 1: Introduce Legal and Regulatory Framework National RE Policy Strategic Thrust 2: Provide Conducive Business Environment for RE Strategic Thrust 3: Intensify Human Capital Development Copyright SEDA Malaysia,

14 According to National RE Policy set in 2009, PV only supposed to get 65 MW by 2015, and about 200 MW by 2020 Increased to 1.6 % on Jan 2014 REPAP Targets Year Cumulative RE Capacity RE Power Mix (vs Peak Demand) MW 5.5%-6% ,080 MW 11% ,000 MW 17% RE Act gazetted in June 2011 FiT introduced in Dec 2011

15 Regulatory Framework Copyright SEDA Malaysia

16 SEDA Malaysia promote & implement national policy objectives for RE implement sustainable energy laws including the RE Act & recommend reforms promote private sector investment in sustainable energy sector advise the Minister & Government on all matters relating to sustainable energy measures to improve public awareness implement, manage, monitor & review the Feed- In Tariff system SEDA Malaysia established on 1 st Sept under the SEDA Act 2011 act as focal point on matters relating to sustainable energy & climate change matters relating to energy Copyright SEDA Malaysia,

17 Renewable Energy Act 2011 RE Act: an Act to provide for the establishment & implementation of a special tariff system to catalyze the generation of renewable energy and to provide for related matters. Comprises of 9 Parts and 65 Clauses Part I: Preliminary Part II: FiT System Part III: Connection, Purchase and Distribution of RE Part IV: Feed-in Tariff Part V: Renewable Energy Fund Part VI: Information Gathering Powers Part VII: Enforcement Part VIII: General Part IX: Savings and Transitional Passed in Parliament: 27 th April 2011 Enforced : 1 December

18 Renewable Energy Act 2011 A mechanism that allows electricity that is produced from indigenous RE resources to be sold to power utilities at a fixed premium price and for specific duration. Provides a conducive and secured investment environment which will make financial institutions to be comfortable in providing loan with longer period (>15 years). Provides fixed revenue stream for installed system Only pays for electricity produced: promotes system owner to install good quality and maintain the system With suitable degression rate, manufacturers and installers are promoted to reduce prices while enhancing quality 18

19 RE Act: Key Interpretations installation which generates renewable energy and includes any technical facility of that installation which converts mechanical, chemical, thermal or electromagnetic energy directly into electricity; Renewable Energy Installation Renewable Energy electricity generated or produced from renewable resources recurring and non-depleting indigenous resources or technology as set out in the first column of the Schedule of the RE Bill Renewable Resources Feed-in Approval Holder a person who holds a feed-in approval Sustainable Energy Development Authority of Malaysia established under the Sustainable Energy Development Authority Act 2011 [Act 726] Authority Distribution Licensee holder of a license to distribute issued by the Commission under section 9 of the Electricity Supply Act

20 The Feed-in Tariff Mechanism : Malaysia s Choice to Catalyst RE Growth Copyright SEDA Malaysia,

21 Feed-in Tariff Mechanism Electricity produced from indigenous RE resources to be sold to power utilities at a fixed premium price and for specific duration Provides fixed revenue stream for installed system Pay for electricity produced: promotes system owner to install good quality and maintain the system With suitable degression rate, manufacturers and installers are promoted to reduce prices while enhancing quality Copyright SEDA Malaysia,

22 RE Resources eligible for FiT Biogas including landfill gas & sewage Biomass including solid waste REPPA for 16 years Small hydropo wer Solar PV REPPA for 21 years Geother mal Copyright SEDA Malaysia,

23 Feed-in Tariff Rules 2011 Individuals Companies Other entities 21 years Malaysians Foreign individuals: limited to Solar PV 72kWp All legally registered companies and businesses Direct ownership Shareholding limitations: Foreign companies: 49% Distribution Licensee: 49% within its distribution area community body corporate society co-operative society firm local authority Copyright SEDA Malaysia,

24 Power System Study (PSS) For RE Installation > 425kW (grid-connected) PSS is required to asses the potential impact of the distributed generation on the planning and operation of the Distribution Licensee s transmission system For RE installation > 12kW up to 425kW Connection confirmation check (CCC) is required Power system study is being conducted by the Distribution Licensee at a fee Copyright SEDA Malaysia,

25 RE Power Purchase Agreement Type of renewable energy power purchase agreement (REPPA) applicable to each Feed-in Approval holder would depend on: the renewable resource utilised by; the proposed installed capacity of the renewable energy installation to be installed. Renewable energy power purchase agreements and Feed-in Approvals can be transferred to new house owners with prior consent from SEDA Malaysia. Copyright SEDA Malaysia,

26 Distribution Licensee obligation Distribution Licensees are legally bound to not only purchase renewable energy but also prioritise such purchases over electricity generated using non-renewable resources. If failure, a penalty will be levied on the distribution licensee Specific time-frames set for all parties involved with established client charters. Contractors/service providers and feed-in approval holders to set realistic target dates for the feed-in tariff commencement date Copyright SEDA Malaysia,

27 FiAH s Commitment Under RE Power Purchase Agreement, Feed-in Approval Holders (FiAHs) must provide 70% of their declared energy yield based on an average annual output For renewable energy installation with net export capacity > 10MW, liquidated damage will be imposed by distribution licensee if the declared annual energy output falls below 70% Copyright SEDA Malaysia,

28 The Malaysian Feed-in Tariff Online System (e-fit System) Copyright SEDA Malaysia,

29 SEDA s Official Portal ( Copyright SEDA Malaysia,

30 Features of e-fit Online System Transpa rent Real Time Autocomput e e-fit Online System Any Time, Any Where Green (Online) Unbiased, Fair Copyright SEDA Malaysia,

31 Real time Quota Information Online Quota with Real-time Quota Availability Copyright SEDA Malaysia,

32 Category of Solar PV Category of Solar PV application Individual (up to 12kW) Community (up to 48kW) Non-Individual (up to 425kW) Non-Individual (> 425kW up to 1MW) Limit of 30MW Solar PV accumulative installed capacity per RE Developer/Non- Individual Applicant Limit of 5MW Solar PV accumulative installed capacity for each shareholder of the RE Developer; direct or indirect 32

33 FiT Application Detail RE Project Information Contractor / Service Provider Technical Detail Project Workplan Supporting Documents Financial Information Statutory Declaration Copyright SEDA Malaysia,

34 System Allocation of Quota Generate Invoice If No Quota Available, Stop If Quota Available, System Assign Capacity Compute RE Fund System Pre- Allocates Capacity 34

35 FiT Verification Process Sign & Upload Statutory Declarati on within 3 days Pay Application Fee within 7 days, if any Deliver Statutory Declaration to SEDA office within 7 days Verify Application & Query Applicant Refuse or Grant Feedin Approval Generate FiA Certificate 35

36 FiT Realization Processes User Registration Feed-in Tariff Application Feed-in Approval REPPA signing with DL Construction / Installation Financing & Procurement ST Provisional License Register REPPA with SEDA ST Permanent Generating License Testing & Commissioning FiTCD SEDA s verify Actual CAPEX & OPEX Monitor Energy Production Distribution Licensee Pay FiT Commence FiTCD SEDA s confirmation 36

37 FiT Implementation & Outcome Copyright SEDA Malaysia,

38 No. Cumulative Approved FiT Applications (31 October 2015) RE Sources No. of Application Capacity (MW) Percentage Total Capacity 1 Biogas % 2 Biomass % 3 Small Hydro % 4 Geothermal % 5 Solar PV 7, % Solar PV [Individual] 6, % Solar PV [Community] % Solar PV [Non-Individual] (<425 kw) % Solar PV [Non-Individual] (>425 kw 1MW) % Total 7,376 1, % 38

39 No. Cumulative Applications Achieved Commercial Operations (31 October 2015) RE Sources No. of Application Capacity (MW) Percentage Total Capacity 1 Biogas % 2 Biomass % 3 Small Hydro % 4 Geothermal Solar PV 4, % Solar PV [Individual] 4, % Solar PV [Community] % Solar PV [Non-Individual] (<425 kw) % Solar PV [Non-Individual] (>425 kw 1MW) % Total % 39

40 2016 Solar PV Degression & Quota Allocation Copyright SEDA Malaysia,

41 PV FiT (Basic) & 2016 Degression Rates Renewable energy installation having an installed capacity of Basic rate 2015 (RM / kwh) Degression Rate up to and including 4 kilowatts % 2. above 4 kilowatts, and up to and including 12 kilowatts % 3. above 4 kilowatts, and up to and including 24 kilowatts % 4. above 24 kilowatts, and up to and including 72 kilowatts % 5. above 72 kilowatts, and up to and including 1 megawatts % 6. above 1 megawatts, and up to and including 10 megawatts % 7. above 10 megawatts, and up to and including 30 megawatts % 41

42 PV FiT (Bonus) & 2016 Degression Rates Renewable energy installation having any one or more of the following criteria in addition to basic rate Bonus rate 2015 (RM / kwh) Degression Rate use as installation in building or building structures +RM % 2. use as building materials +RM % 3. use as locally manufactured or assembled solar photovoltaic module 4. use of locally manufactured or assembled solar inverters +RM % +RM % 42

43 More Solar PV projects Copyright SEDA Malaysia,

44 off-grid Hydrid Solar PV In the State of Sabah - mainly on islands In the State of Sarawak - In the interiors > 5.8 MWp > 2.2 MWp Copyright SEDA Malaysia,

45 11 th Malaysia Plan (11MP] Malaysia targets to reduce the intensity of greenhouse gas emissions (GHGs) to 40% of GDP in 2020 through: RM45 million for the implementation of an Electricity Mobility Action Plan including energy audit process; Sustainable Energy Development Authority (SEDA) will offer a quota of 100MW per year under the Net Energy Metering Scheme to encourage the use of solar photovoltaics; and Extend the implementation period of the Green Technology Financing Scheme until 31 December 2017 with a fund of RM1.2 billion. 45

46 Increasing the share of RE through PV On 18 August 2015, the Planning and Implementation Committee for Electricity Supply and Tariff (JPPPET) approved 2 new mechanisms for RE: Net Energy Metering (NEM) announced by the Hon. PM on 23 Oct 2015 in Malaysia s 2016 Budget Speech Utility consumers are allowed to install PV systems on their roof for selfconsumption, with the balance being exported to the Grid, and net-off from their monthly bills at displaced cost Total quota of 500 MW till 2020 or 100 MW a year starting from 2016 After 500 MW capacity is reached, new entrants might have to pay a monthly fee to remain connected to the Grid Small non-pv systems may also be considered for NEM (e.g. micro hydro, biogas) Utility scale PV PV plants with capacity 50 MW selected through open bidding process and connected to either the Distribution or the Transmission network Total capacity of 1000 MW by 2020 or 250 MW a year starting from

47 ASEAN Targets : New definitions & RE Targets AMEM (Asean Ministers of Energy Meeting) in 2014 made two important decisions Large hydro and off-grid hybrid RE systems to be classified as RE Target RE capacity increased to 30 % of installed capacity by 2020 from old target of 15 % of installed capacity by 2015 For Malaysia, this has two important implications RE installed capacity has immediately shot up from < 300 MW to almost 4000 MW, by including Temengor, Bakun, and all the other existing large hydros and off-grid systems RE target for 2020 = 30 % of 30 GW = 9000 MW Expected RE installed capacity by 2020 Existing large hydro & off-grid in 2015: 3700 MW FiT by 2020: approximately 1100 MW Expected new large hydro and off-grid RE: 700 MW Total: 5500 MW Shortfall: 3500 MW 47

48 PV Industry Copyright SEDA Malaysia,

49 Prospecting for RE Industry Partner *** EPC: needs to have local office (or work with local partner) *** 49

50 PV Manufacturing Statistics (2014) No. Company Name Capacity Employment Metallurgical Grade Silicon / Polysilicon 1 Elpion Silicon 33,4 kilo tonne Tokuyama 20 kilo tonne 680 Total 53,4 kilo tonne 840 Wafer & Solar Cells 1 AUO-SunPower 700 MW MEMC MW Panasonic Energy 300 MW Hanwha Q-Cells MW TS Solartech 400 MW 123 Total MW

51 PV Manufacturing Statistics (2014).. cont PV Modules Capacity (MW) Employment 1 First Solar 1 690* Flextronics Panasonic Energy Malaysian Solar Resource 5 SolarTIF PV Hi-Tech Solar 5 15 Total * Target MW in

52 PV Manufacturing Statistics (in the 2015 pipeline) No. Wafer/Solar Cells Company Name Capacity (MW) Employment 1 Comtec Solar International (W) Tetrasun (First Solar) (SC) Jinko Solar (SC) 500 * 4 JA Solar (SC) Total PV Modules 1 Jinko Solar * 2 Endau XT Total

53 Photographs of Solar PV Installations Copyright SEDA Malaysia,

54 170 kwp, on shopping complex Kuala Lumpur 13.0 MWp, over a Landfill Negeri Sembilan kwp, on a Steel Service Centre rooftop, Shah Alam 54

55 10.25 MWp Solar Farm at Gemas, Negeri Sembilan

56 Click to edit Master title style 5.0 MWp Solar Farm with Single Axis Tracker near KL Internation Airport

57 BIPV Homes - Examples 57

58 BIPV Homes Examples (cont d) BIPV extended car porch (3 kw) BIPV car porch 58

59 59

60 Thank you SEDA Malaysia, Galeria PjH, Level 9 Jalan P4W, Persiaran Perdana, Presint 4, Putrajaya, Malaysia. Phone : fit@seda.gov.my Web: Copyright SEDA Malaysia