1. Renewable Energy : Opportunities and Challenges
United Nations Environment Programme (UNEP) and The Energy and Resources Institute (TERI)   Regional Workshop on Innovative and Sustainable Energy Technologies for Developing Countries: Opportunities and Challenges May 2014 New Delhi, India
COUNTRY PRESENTATION MALAYSIA
Renewable Energy : Opportunities and Challenges
Abdul Rahim Ahmad, Assoc. Prof. Dr. Institute for Energy Policy and Research (IEPRe) and College of IT, UNITEN (M), (O)

2. Contents IEPRe, Universiti Tenaga Nasional (UNITEN) SEDA Malaysia
Renewable Energy Act 2011
Renewable Energy (RE) Fund
Issues.
RE Fund Generation.
Case Study of Solar.
Smart Grid in Malaysia
Appendix: Renewable Energy Act 2011

3. Institute of Energy Policy & Research (IEPRe)
An institute in Universiti Tenaga Nasional, 100% owned by Tenaga Nasional Berhad (TNB) – Malaysia’s Utility Company.
Research on financial and economic analysis of energy industry
supply side; tariff setting, long term energy planning, energy security.
demand side; energy use in all sectors - industry, commercial and domestic users.
Aim:
Research and consultancy in Energy Economics
To be competitive in ASEAN energy venture
Help develop local expertise

4. Sustainable Energy Development Authority (SEDA) Malaysia
A statutory body.
Formed under Sustainable Energy Development Authority Act 2011 [Act 726]. 
Role :
Administer and manage implementation of feed-in tariff mechanism.
Promote deployment of sustainable energy measures towards achieving energy security and autonomy

5. SEDA Functions on Sustainable Energy (SE)
Advisor to Government.
Implementer of National Policy objectives.
Promote, stimulate, facilitate and develop SE; Feed-in tariff and Sustainable energy laws.
Promote Private sector investment.
Conduct research, assessment, studies, advisory role.
Promote public participation and awareness.

6. Renewable Energy Act 2011
Provide platform for sustainability for Malaysia’s future.
Passed by parliament in April 2011.
Aims to provide for the establishment and Implementation of feed-in- tariff to catalyse the generation of energy from renewable resources
Feed-in-tariff is supposed to be the price paid by utility company to supplier of power by renewable resources.
Renewable resources is limited to biomass, biogas, small hydro and solar PV

7. Renewable Energy (RE) Fund
A fund for implementation of the Feed-in-Tariff (FiT).
Approved under Renewable Energy Act 2011.
Surcharge to be collected from consumers at 1% of the electricity bill (increase to 1.6% effective Jan 2014).
To be collected by Utility company on behalf of SEDA.
Domestic consumers: Only for >300kWh. (25% of consumers).
Non-domestic consumers: All will contribute regardless of amount. 

8. Sample Utility Bill
Renewable Energy (RE) Fund

9. Application Status of RE Fund (Jan 2013)
End January 2014:
3,498 applications
2,760 approved
RE capacity of MW.
Solar PV: 2,700 with total capacity of MW (39%)
Biomass: 18 with total capacity of MW (31.06%)
Small hydro: 22 with total capacity of MW (24.44%)
Biogas: 20 with total capacity of MW (5.51%)
Total RE capacity achieving commercial operation was MW
Solar PV MW
Biomass 50.4 MW
Small Hydro 15.7 MW
Biogas MW

10. Financial Status of RE Fund (Jan 2013)
Totals collected : RM776.5mil (including RM300mil grant)
Payment to FiT Power producers:
1427 of 2760 feed-in approval holders (FiAHs) : RM73mil
Administrative fees :
RM3.65mil (of RM73Mil, 3% to SEDA and 2% to TNB).
Power purchase agreements:
Between FiT power producers and TNB.
Paid yearly from RE Fund.
21 years for solar and hydropower.
16 years for biogas and biomass.
RM8bil - RM9bil needed in those period.

11. ISSUES RE surcharge raised to 1.6% in January. Many Complaints
Renewable sources costs more than petroleum, gas and coal because Fossil fuels are highly subsidised.
Many Complaints
Mainly from Customers.
Notably Former Department of Environment director-general (The Star 26 Feb 2014)
Go by the ‘polluter pays principle’ … charge the 1.6% to fossil fuel-power generators.”

12. Alternative Ways of Collection for RE Fund
Utility Company’s contribution
Renewable Portfolio Standard - Mandates power generators to generate some % of their energy from renewable sources.
Carbon tax - taxing carbon polluters like coal power plants, the transport and industries sectors, to curtail their carbon emissions.
Example (2011)
Power generated from coal-powered stations - 45,160,000MWh
CO2 generated (assuming 0.9 tonnes per MWh) million tonnes
Tax (RM70/tonne based on Australia AUD$23/tonne) - RM2.85bil/year

13. Case Study 1 - Pajam Solar Park (Cypark resources)
An integrated renewable energy park from a restored landfill.
Malaysian Book of Records - largest solar park in Malaysia.
An Entry Point Project under Malaysia’s Economic Transformation Programme (ETP).
Brings about environmental and economic transformation - dump sites restored into green and healthy lands with economic and social value.

14. 5 RE Parks by CyPark Renewable Energy Park, Rimba Terjun, Johor
Renewable Energy Park, Kuala Perlis
Renewable Energy Park, Kuala Sawah, Rantau Negeri Sembilan
Integrated Renewable Energy Park, Bukir Palong Negeri Sembilan
Integrated Renewable Energy Park, Pajam, Negeri Sembilan
Renewable Energy Park, Rimba Terjun, Johor

15. CyPark in the News (28 Jan 2014)

16. Top 10 Solar Developers in Malaysia (2012)

17. Smart grid development in Malaysia
Issues for long term Power strategy in Malaysia
Growing demand, 3.5%/yr - next 10 years
Depletion of domestic natural gas supply - replaced by coal
Environmental issues - pollution and CO2 emissions
Increase operational efficiency, reducing T&D system losses

18. TNB Technology Roadmap
25 years
Modernizing the electric power industry in the country.
4 main objectives,:
Reliability and efficiency
Intelligent power-delivery systems (smart grid)
Value-added electric power products and services
Reduced environmental impact

19. Malaysia's renewable energy Plan
Malaysia's renewable energy objectives has led to introduction of a feed-in tariff program.
Support distributed generation
To increase efficiency
TNB smart grid development plan
TNB smart grid program initiated in 2009
Four areas of focus
Operational efficiency (T&D) and Energy efficiency - DMS, on-line condition monitoring, distribution automation, GIS, customer information management (CIS and CMS)
Empowering customers - smart meters and AMI, enabling consumer energy management
Reducing CO2 emissions - renewable energy, energy efficiency, co-generation, distributed energy resources, and dynamic voltage/VAR control
Support electric vehicles - develop charging infrastructure for PHEVs

21. Smart Grid 3 Phases (2011 – 2015) Phase 1:
Focussed on is reliability and involves distribution automation, deployment of DMS, customer information system and integration with other enterprise systems. TNB decided to begin with three smart grid demonstration programs in Bayan Lepas (industrial centre), Bukit Bintang (commercial centre), and Medini (rural).
Phase 2
Targets customer empowerment and energy efficiency through smart meters and AMI, bidirectional communications, improved billing, remote connection management, dynamic voltage/VAR Control, demand management, consumer power management,and reduced T&D losses.
Phase 3
Focusses on reducing CO2 emissions, through renewable energy, energy storage, electric vehicles, and energy efficient street lighting.

25. END

26. Supplementary Slide Renewable Energy Act 2011