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ENERGY
energy loss due to distribution of energy
through the grid.
Chin indicated in The World PV
Market scenario, at present in the
beginning of 2014, Malaysia had
100MW installed. It will have a cumulative
capacity of 150MW (as at Sept
2014) or 180GWh/year that is only
0.17% of National Electricity Demand
compared to the average Global
indicators of 43.5GWp installed with
cumulative 139GWp (2013) or 160TWh/
year indicating a 0.85% usage of Global
Electricity Demand, whereby IEA forecasted
growth to 11% of global electricity
demand by 2030.
With 85% of Solar PV modules
being manufactured (36GWp) in Asia,
whereby China and Taiwan are the
major producers, Malaysia is still contributing
about ~3,800MWp (approx.
10.5% ). It is perceived that Malaysia
should also take a lead in PV installations
and benefit from Solar energy as
one of the major producing countries
in Asia.
The Malaysian Photovoltaic Industry
Association would like to suggest the
following:-
NET Energy Metering (NEM)-Allow
the Commercial and Industrial players
to produce their own electricity but
using the NEM methodology to have
independence and security of energy
supply.
The idea of net metering came
about as electricity generation from
RE resources by users has become
more competitive compared with that
from conventional fuels (mainly coal
and gas). The most important of these
initiatives have been the growing competitiveness
of grid-connected solar
PV systems, although other renewable
energy sources such as biogas, biomass
and small to mini-hydro can also
qualify.
PV is a rapidly growing RE resource
due to its substantial and sustained cost
reduction over the years resulting from
its production volume “explosion” and
technology development. PV provides
the option of a “clean, green & indigenous”
source of electricity generation,
with virtually unlimited generation
capacity. It also has the advantage of
generating its output during the
national system peak demand period,
just when it is most needed and most
costly to generate from conventional
generation sources like Open Cycle Gas
Turbines (OCGTs).
In the Malaysian context, Net Energy
Metering (NEM) has now become a very
viable option to complement (or even
displace) the current Feed-in-Tariff
(FiT) mechanism as the latter is seen
as an undesirable (and even socially
Proposed Strategies and Future PV
Landscape for Malaysia
Commercial and Industry - NET ENERGY METERING (2015 – 2025)
2015-2020 - With Investment Tax Allowance (1.75GW)
2021-2025 - Without Investment Tax Allowance (5 GW)
2026-2035 - Without Investment Tax Allowance (22.4 GW)
Extension of FIT +NEM – Individual/Residential Quota Only (2016-2025)
2016-2025 – 10 years Power Purchase Agreement (1.65GW) - 200,000 rooftops
2026-2035 – Net Energy Meter ( 8.45GW) – 1,000,000 rooftops
PV Utility Scale Installation - Future
unjust) burden on the electricity consumers who have
to pay for the FiT’s “top-up” tariff. Moreover, the RE Fund
levy limitation constrains more rapid expansion of the PV
market due to the limitations of available fund from the 1.6%
levy imposed on the affected electricity customers. These
are contributions from consumers.
The NEM scheme would give greater opportunities to
the consumers concerned to generate their own electricity
from RE resources, especially solar PV for their own
consumption thereby hedging against any future tariff
increase.
MPIA also proposed strategies and future PV landscape
for Malaysia for Commercial and Industrial market with
NET Energy Metering including FIT + NEM for individual
/Residential installations as per above self explanatory
diagram.
Utilities may perceive NEM as a major threat but it could
actually benefit all parties –from the energy users or customers
to the utilities and the country as a whole.
Guiding Principles for Net Energy Metering (NEM)
The following guiding principles should be considered for
the adoption of the NEM mechanism:-
Self-Generation and Access to the
Utility Grid: Qualified retail electricity
customers should have the right
to install RE generation facilities
such as rooftop solar PV systems
at their premises and connect
them to the utility grid without any
discrimination.
Value of Solar PV generated
Electricity: Rooftop owners of solar
PV generation systems can offer
many benefits to the electricity
supply system and the nation. These
include:-
➲ Reduction in utility capacity and
energy generation requirements,
especially during the peak demand
period that coincides with the PV
generation profile.
➲ Reduction in distribution
system losses.
➲ Avoidance or deferral of distribution
and transmission system
reinforcement investments.
➲ Hedging against fuel price volatility
especially for imported fossil
fuels.
➲ Reduction in greenhouse gas
emissions and water usage.
These benefits should be quantified
to determine the true value of solar PV
generated energy delivered to the grid.
Capacity Limit on Rooftop PV
Installations: No capacity limit should
be imposed on the total rooftop PV generation
as it forms “generation at point
of use” and is a valuable addition to the
national electricity generation fuel mix.
However, the terms and conditions can
be considered for NEM applicable as
follows with a proposed NO QUOTA
LIMIT :-
➲ Maximum Installation capacity:
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november-december, green+.2014