Renewable Energy Act establishing feed-in tariff (FIT) system

The Renewable Energy Act 2011 was enforced on 1st  April December 2011 Malaysia establishing the feed-in tariffs (FIT) system with an annual installed capacity caps to 2030.

Costs of the system are transferred onto electricity consumers who pay an additional surcharge of 1% on top of their electricity bills collected by the distribution licensees and deposited into the RE Fund, About 75% of domestic electricity costumers who consume less than 300 kWh/month will be exempted from contributing to the RE Fund.

To benefit from tariffs, renewable developers need to secure a Feed in Approval (FiA) from Sustainable Energy Development Authority (SEDA) Malaysia and conclude a RE Power Purchase Agreement with Distribution Levels (eg. TNB, SESB, public power utilities).

Existing RE power plants under the existing Small Renewable Energy Programme (SREP) under the RE Act 2011 are allowed to convert to the current FiT system.

FITs are ranging over a 21 year period for PV and mini hydro and 16 year period for biomass and biogas. 

Refer to www.seda.gov.my for current tariffs and degression.

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