SEDA allows property developers reserve NEM quota for new projects from Aug 5

Last update: 02/08/2019

PUTRAJAYA, Aug 2 (Bernama) -- Property developers are allowed to reserve Net Energy Metering (NEM) quota for new projects starting Aug 5, said Sustainable Energy Development Authority (SEDA) Malaysia.

Its chairman Wong Kah Woh said this is among the government’s initiatives to drive the solar photovoltaic (PV) agenda and encourage installation among property developers.

"This is one of the measures taken by the government to achieve the target of 20 per cent of renewable energy (RE) in the national installed capacity mix (excluding large hydro) by 2025," he told a press conference here today.

In that respect, Wong said only hydro capacity up to 100 megawatts (MW) will be included in the RE target, noting that as at the end of last year, RE accounts for six per cent of the national installed capacity mix.

Wong said Peninsular Malaysia has huge technical potential for solar PV rooftop application, with over 4.1 million available rooftops including on 1,000 shopping malls.

He said interested property developers must be incorporated in Malaysia and applicable for residential, commercial and industrial types of development.

Applications must be made before Dec 31, 2020 with proof of development order submitted as a supporting document.

The project’s allowable time frame is up to a maximum of 30 months from the project’s commencement date, he said.

Wong said under the NEM concept, energy produced from the installed solar PV system will be consumed first, and any excess energy will be exported to Tenaga Nasional Bhd (TNB) and sold on a one-on-one basis.

NEM was first introduced in November 2016 and a total capacity of 500 MW has been allocated until the end of next year.

However, the take-up has been low and at the end of last year, the Ministry of Energy, Science, Technology, Environment and Climate Change announced enhancements to the NEM scheme.

To date, SEDA Malaysia has approved up to 58.6 MW under the NEM programme. Among NEM benefits are reduced electricity bills, ability to generate one’s own clean energy, reduced carbon footprint and a hedge against uncertainty in electricity tariffs.

Asked on updates for the second biogas e-bidding exercise, Wong said the process was closed on July 29 and the proposals are now being studied.

He said the shortlist is expected by September before the opening of the inaugural e-bidding for small hydro power systems.