Solar PV: Policy, Market & Industry in Malaysia

Transcription

1 Solar PV: Policy, Market & Industry in Malaysia Dr Wei-nee Chen Chief Corporate Officer, Sustainable Energy Development Authority (SEDA) Malaysia October 2017

2 Malaysia: Electricity Generation Mix Source: 11 th Malaysia Plan (2015) Population (2017) : 32m GDP per capita (2016) : US$9502 Area : 329,847 km² Electricity generation capacity (2017): 30 GW 2

3 RE 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 2015: 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) Green Technology Master Plan: RE Target 30% by 2030, Minister s Aspirational RE Target: 50% by

4 BACKGROUND SEDA MALAYSIA Statutory body formed under the Sustainable Energy Development Authority Act 2011 [Act 726], reporting to the Ministry of Energy, Green Technology & Water (KeTTHA). Established since 1 st September Formed to fulfil a gap which holds an agency accountable for the growth of RE in the country (NREPAP, 2010). The scope of SEDA Malaysia is not limited to RE; SEDA Malaysia also involves with the implementation of energy efficiency and conservation program that has been mandated by the government and industry driven initiatives. To conclude, SEDA Malaysia responsible for the growth of Sustainable Energy agenda in Malaysia.

5 RE Technical Potential in Malaysia Renewable Energy (RE) Potential Mini-hydro : 490 MW Biomass : 1,340 MW Biogas : 410 MW Municipal waste : 360 MW Geothermal: 60 MW Total : 2,660 MW Solar : Unlimited Sarawak Hydro : 20,000 MW Wind : Low wind speed (Source: KeTTHA, SEDA, ST)

6 PV Schemes in Malaysia Capital subsidy under UNDP-GEF Malaysia Building Integrated PV (MBIPV) Project ( ) (quota 1 MW); Feed-in Tariff (FiT) implemented by SEDA since 1 st November 2011; Net Energy Metering (NEM) implemented by SEDA & regulated by the Energy Commission since 1 st November 2016 (quota 500 MW); Large Scale Solar (LSS) implemented by Energy Commission since 2016 (quota 1,000 MW)

7 FiT Rate for Solar PV (2017) [US$1 = RM4,21]

8 Scheme Grid-Connected Solar PV Market Status Category No. of Applications (Aug 2017) Approved Capacity (MW) Commercial Operation No. of Applications Capacity (MW) FiT Sub-total , Individual , ,52 Community , ,85 Non-Individual , ,62 NEM Sub-total 101 3, ,31 Residential 72 0, ,42 Commercial 22 1, ,12 Industrial 7 1,77 7 1,77 LSS Sub-total ,90 Up to 5 MW 5 21,40 Up to 30 MW 7 120,5 Up to 50 MW Total , ,31

9 FiT implementation Outcome (up to 2019) 9

10 Large Scale Solar Bid Price (Aug 2017) Category P1 ( MW ac ) P2 ( MW ac ) P3 (10-30 MW ac ) Total No of Submissions /MW Peninsular Malaysia Lowest Bid Price RM/kWh Highest Bid Price RM/kWh 25 (72,3MW) 0,375 0,47 18 (171,9MW) 42 (1.198MW) 85 (1442,2MW) 0,37 0,46 No of Submission s /MW 19 (78,8MW) 12 (111MW) Sabah Lowest Bid Price RM/ kwh Highest Bid Price RM/ kwh Total Submissio ns 0,371 0, ,39 0, ,3398 0,5 na na na (189,8MW) 116 (1632MW) Available Quota: 360MW ac (x 4) in Peninsular Malaysia and 100MW ac (x 2) in Sabah (commercial operational by ); Exchange rate: US$1 = RM4,21 Source:

11 Current Issues & Challenges 1. Solar PV regarded as intermittent and unreliable source of energy; 2. Energy storage solutions are still costly; 3. Electricity tariff still being subsidized for natural gas low displaced cost and selling of NEM excess solar electricity to grid is disincentivized; 4. Cost of externalities by fossil fuel not internalized in electricity tariff (no carbon tax); 5. Electricity market is highly regulated with single-buyer structure (energy trading among prosumers not possible); 6. Paradigm shift from baseload electricity market to energy balancing/flexibility market very challenging; and 7. Urgency of climate agenda needs to be strongly institutionalized in energy policy. 11

12 1 MW Agriculture, TTL Energy Sdn Bhd, Sabah

13 5 MW, SunEdison Inc., Selangor

14 Solar PV Industry (end of 2016) In 2016, export and local sourcing activities undertaken by the top solar companies in Malaysia was valued at US$2,5 billion and US$320 million respectively. Over 80% of the PV products were exported to Europe, US and Asia. Malaysia has also completed a Solar PV Roadmap 2030 which will be launched in October 2017 to drive the country s solar PV industry forward Manufacturers (Silicon Process & feedstock /ingots) technology Nameplate Capacity Elpion Si Metal Si 33,4 tonnes Tokuyama 1 Poly-Si 20 tonnes COMTEC 2 mc-si ingots 124 MW [1] Sold to South Korea s OCI Co Ltd in 2017 [2] In early 2017, LONGI agreed to buy over COMTEC Malaysia.

15 Cell/Module manufacturer Technology Production capacity (MW/yr) Cell Module Wafer-based PV manufactures 1. Sunpower mono-si Hanwha Q-Cells mc-si TS Solartech Mono & mc-si Jinko Solar mc-si JA Solar mc-si Flextronics c-si Panasonic HiT mono-si MSR Mono & mc-si Solartif mc-si PV HiTech mc-si Promelight Mono & mc-si 150 Sub-Total Thin film manufacturers 1 First Solar CdTe Nanopac 12 Sub-Total TOTALS [1] SunPower took over its joint venture (JV) solar cell manufacturing operations in Malaysia from Taiwan-based partner AUO, a subsidiary of AU Optronics Corporation at a cost of US$170 million in 2016

16 Co-Hosts 4 th International Sustainable Energy Summit (ISES) 2018 Sustainable Energy: The Future is Here Pullman Hotel, Kuching, Sarawak, Malaysia th April Ministry of Energy, Green Technology & Water Endorsed by 16

17 Thank you SEDA Malaysia, Galeria PjH, Level 9 Jalan P4W, Persiaran Perdana, Presint 4, Putrajaya. Likas Square Commercial Centre Unit 32, Level 1, Lorong Likas Square, Jalan Istiadat Likas, Kota Kinabalu, Sabah fit@seda.gov.my Web: 17