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ENERGY
80% of declared maximum demand
➲ Energy Export Limit: Shall not be
more than 25% of energy imported
➲ Export Tariff: 10% lower than the
import tariff.
➲ Access to Billing Data: Billing
statements from utilities should
clearly show the consumer’s total
electricity use and the net energy
exported to the utility grid.
➲ Metering Equipment: The NET
Meter system should be introduced
under a new amendment for the RE
Act
➲ Customer Classes: All customers
should be able to participate in
net energy metering.
Proposed Net Energy Metering (NEM)
Programme
Based on the above Guiding
Principles, MPIA wish to propose the
following:-
A consistent and pragmatic NEM
program starting from 2015. The
details below show proposals for
the first 10 years up to 2025. A
comprehensive review of the NEM
will be made during and after 2025 to
ensure its effectiveness and fulfill its
intended benefits.
Based on Suruhanjaya Tenaga’s
long term load demand forecast as
contained in Peninsular Malaysia
Electricity Supply Industry Outlook
2013, we hereby propose the possible
annual PV capacity installations for
the period 2015 to 2025, as follows:-
General Cost / Benefits Analysis of NEM
The proposed capacity of rooftop
PV systems is planned to be limited
to 30% of the national electricity
system maximum demand to shave
the system peak and reduce the
need for costly peak period generation
plant like OCGT. This means that
the maximum capacity rooftop PV
systems can be as high as 6,634
MWp by 2025. [See Table 1 above]
Foregone revenues for PETRONAS
to provide gas for power generation
will be eliminated as gas subsidies
are removed.
The peak period energy generation
cost to a utility is normally well
above the average retail selling
price. Thus TNB should see a net
gain in profits even though its overall
revenue may drop slightly. This is
because every KWh sold during the
peak period that is generated from
conventional generation plant would
have cost more than the average
revenue derived for the sale.
TNB will also gain in reducing the
consumption of natural gas in
running Open Cycle Gas Turbines
(OCGTs) during peak demand, as
solar PV will meet it during that
TABLE 1
Forecast Forecast Proposed Cumulative Cumulative Contribution
Annual Annual MD Annual PV PV Installed Cumulativex from
Electricity NEM (MWp) under NEM generation solar PV
Sales (GWhr) (MWp) from PV
(GWhr)*
(MW) (%)
2015 108,167 17,671 150 150 93.75 0.08%
2016 112,586 18,338 195 345 309.38 0.25%
2017 116,540 18,926 244 589 583.59 0.46%
2018 120,780 19,558 305 893 926.37 0.70%
2019 124,788 20,149 381 1,274 1,592.87 1.17%
2020 129,482 20,847 476 1,750 1,890.42 1.34%
2021 133,640 21,456 595 2,345 2,559.90 1.77%
2022 136,832 21,908 744 3,089 3,396.75 2.29%
2023 138,201 22,067 930 4,019 4,442.81 2.97%
2024 141,227 22,490 1,162 5,181 5,750.38 3.77%
2025 144,188 22,900 1,453 6,634 7,384.86 4.75%
Note: * the specific energy yield is assumed @ 1,250 KWhr/KWp
period.
Saving in CO2 emissions. Assuming
on average, a conventional fossil
fired power plant emits 0.70 ton/
MWhr of CO2, the total reduction in
CO2 emission amounts to 5.17 million
tons in the 10-year period.
Improves energy security for the
country as it reduces country dependence
on gas and coal.
The new employment created by
the PV industry will be at least 40,000
direct/indirect employment and over
RM10 billion of economic activities by
2025.
Encourage growth of local components
manufacturing capacity. For
example the current solar PV manufacturers
i.e Malaysia Solar Resources,
TSI and Panasonic have a combined
manufacturing capacities of about
500 MWp annually that could provide
critical support in meeting the expected
increase in demand when the NEM
programme is fully implemented. So are
other industries such as manufacturing
of other components such as solar
cables, SPD’s, steel and Aluminum
industry.
Proposed Fiscal Incentives for Net
Energy Metering
To encourage commercial and residential
owners to invest in the PV system
for their own consumption, the government
is requested to provide the
following incentives, in addition to the
existing Capital Allowance (CA) made
available to incentivise the industry,
that is Investment Tax Allowance (ITA):
Exemption of import duties of major PV
system components such as PV modules
and inverters.
If these fiscal incentives are offered
as a whole complete package, commercial
and industrial sectors could get
their payback from such investments in less than 10 years
without recourse to premium FiT payment by SEDA.
MPIA, therefore, proposes that the government offers
to commercial and industrial premise owners a complete
package of fiscal incentives combined as listed above.
Concluding remarks
MPIA believes that the implementation of this Net Energy
Metering mechanism will bring about enormous benefits
to the utility, PV industry and to the country. MPIA also
proposes that the programme should be implemented as
soon as possible and should be in full swing in 2015 if possible.
It will help to reduce the need to install or operate peak
load generation capacity and reduce the need for costly
peak period energy generation from OCGTs.
MPIA has the following wish list:-
All future buildings designs must be Solar ready
Investment Tax Allowance and Capital Allowance to be
extended to 2020
Tax Rebates for individual investments for Solar PV
Rooftop owners
To allocate more funds human capital building especially
for human resource competency training in the Solar
PV Industry
Incentivise the Local manufacturing of Solar PV system
components such as solar cables, DC fuses/DC breakers,
customized PV modules for buildings
Extension of FIT for Residential Installations only-
(Proposed contributions from PETRONAS, TNB & IPPs for a
special GREEN FUND for these installations)
green+.2014, november-december 19