Incentives for Renewable Energy, Energy Efficiency and Green Buildings in Malaysia Ministry of Energy, Green Technology and Water as on June 2010

targeting manufacturer who wants to generate energy from its manufacturing's byproduct, prospective RE plant developer & businesses who want to save

on fuel by using RE

PS, ITA (100%), import duty and sales tax exemption for Sdn.

Bhd. & Bhd. companies that go for RE and EE

companies that generate energy to sell & for own use gets the

most incentives for RE

energy services companies that undertake energy auditing

service activities will get most incentives for EE

application for RE and EE incentives shall be made before

31 December 2010 and the projects shall be commenced within 1 year after approval

incentives for obtaining GBI certificate valid between 24

October 2009 until 31 December 2014

businesses who obtaining GBI for their building are eligible for 100% tax exemption equivalent

to the amount of QE

businesses & individual who bought GBI certified property will get stamp duty exemption

while companies are allowed to apply for expatriate posts, they

were encouraged to hire and train Malaysian in the same field

KeTTHA listed wind as one of the RE sources, but MIDA does not.

Wind energy producers might not eligible for the said incentives

this document does not specify foreign equity shareholding limit or eligibility of foreign companies

to apply for the incentives

availability of same incentives (RE & EE) next year (2011) or the

following year will only be known after Budget 2011 on October

2010

Feed-in-Tariff in Malaysia Malaysia Building Integrated Photovoltaic Project as on July 2010

More information available at MBIPV website

RE producers sell maximum 30MW electricity to TNB at

premium tariff fixed for fixed number of years

introduced as early as second quater of 2011

TNB will buy electricity generated from the following RE

sources: biogas, biomass, mini hydro & solar PV. No wind &

solar thermal

RE producers are still eligible for other government incentives

TNB will study, including but not limited to the location,

technology employed, financing, & nearest TNB interconnection point to RE producers. TNB also

imposed certain quota

foreign equity shareholding of RE producers is capped at a

maximum rate of 49%

the are capacity limit each year for each RE "to keep the cost

within projected funding"

annual degression rate for solar PV are the highest (8%), which also means that solar energy

producers should participate in this initiative during the first year of implementation to obtain more

revenue.

Small Renewable Energy Power Programme (SREP) Energy Commission as on September 2010

applicable for the following RE

resources: biomass, biogas, municipal waste, solar, mini-hydro,

wind

The producer

The plant

must negotiate with TNB on selling price etc

will be given licence for 21 years

responsible for grid connection and necessary

metering installation

Must be 30% Bumiputera-owned and max 30% foreign equity

shareholding must located max 10km from nearest grid-

interconnected point except for mini-hydro

no stand-by charges

back-energy at prevailing tariff

given preferential treatment

can generate more than 10MW but allowed to

sell 10MW only

must be ready 12 within month after

approval

must be approved by DoE

Green Technology Financing Scheme

Ministry of Energy, Green Technology and Water Available online at GTFS website

soft loan of RM1.5 billion latest balance RM1.370 billion (Oct 5 2010)

producer of green tech: max RM50 million per company, tenure up to 15years. Must be at least 51% Malaysian-

owned

user of green tech: max RM10 million per company, tenure up to

10 years. Must be at least 70% Malaysian-owned

application open starting 1 January 2010

until 31 December 2012/complete

utilization of loan

no R&D, projects ready for

commercialization only

government will

bear 2% of total interest/profit rate

government will

guaratee 60% of the financing amount,

another 40% by participating banks

targets energy, construction, waste

management and transportation

applies only to new

projects

companies are allowed to make more than one

application

guarantee/guarantor are compulsory

application is free and can be made online

Review on Malaysia’s national energy developments: Key policies, agencies, programmes and international involvements published in Renewable and Sustainable Energy Reviews in 2010

Transport used the most final commercial energy in 2010

with about 41.1%, followed by industrial (38.8%) , residential & commercial (12.8%). Annual

growth is 6.3%

Malaysia have 9 policies relevant to energy prior to National Green Technology Policy announced last year

(2009). There are 5 RE and EE initiatives since 1999

All key players in energy development are

government-linked companies and government

agencies.

MIEEIP successfully cut down up to 35% energy

consumption, 26.7% less fuel usage & substantially lower CO2 emmision for selected

industries

49% of projects under SREPP are biomass, followed by

mini-hydro (43%). Only 10-15% of the participants signed

Power Purchase Agreement with TNB/others

Bungalows with BIPV at Shah Alam were sold around

RM1.58m, Putrajaya (RM2.9-4m). 5kWp system costs

RM170k generates RM150 electricity every month

Malaysia's potential in carbon trading is huge (up to RM3b annually). Malaysia currently has 156 CDM projects in the

pipeline

Developers whom employ MBIPV initiative could expect

between 30-35% subsidy

Energy policy and alternative energy in Malaysia: Issues and challenges for sustainable growth published in Renewable and Sustainable Energy Reviews in 2010

current contribution of RE in Malaysia's total energy mix is

below 2%, far below 5% targeted on early 2011

RE with most grid-connected capacity is biomass (67% of total

RE) followed by mini-hydro

solar could generate up to 6500MW while wind energy

seems not feasible in Malaysia

5kWp BIPV system costs RM135k, generating 6000kWp annually. Cost of PV gradually

decreased every year (16% since introduced). However only 0.4MW are grid-connected.

MOSTI putting hydrogen fuel cell research as the second

priority after solar with around RM41m grants allocated

EE under LEO and GBI initiatives targeting max 100kWh/m² and 50% energy saving compared to building without energy saving

design

Highly-subsidized non-renewable energy (e.g. oil) undermining the

growth prospect of RE and financing RE is still an issue

There are growing trends among property developers who actively

promoting green solutions and supporting industries (e.g.

energy efficient roofing solution companies) are also catching-up