Monday, May 27, 2013

Solar PV quota of over 9 MW fully allocated within 15 minutes after quota re-opens

Last week, SEDA Malaysia released PV quota of 9MW from previously submitted applications made on 2nd April 2013 which were unsuccessful.


Total quota                        : 9 MW
Total allocated                  : 15.2046 MW
Reason for 'over allocation'    : Previously unsuccessful, & many applicant applied for larger PV capacities

Quota opened                    : 23rd May 2013, noon
Quota fully allocated         : Within 15 minutes after opening
Total no. of applications    : 70
Application success rate    : Slightly over 50% (that's a very high failure rate!)

Note: The high number of rejection of application (unsuccessful applicant) is due to poor submission quality. In other words, online applications submitted without fulfilling the requirement by SEDA.

The Green Mechanics:
It is hoped that SEDA Malaysia will conduct more trainings, workshops, and briefing on the potentials of Solar PV and the procedure for correct submissions. SEDA must conduct these free-of-charge and not collecting fees.

There should be fund allocation for 'marketing the idea', training, nationwide campaign and awareness, and other promotional activities. That is why there is 1% levy on heavy energy users.

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Putrajaya, Thursday (23rd May 2013): The Sustainable Energy Development Authority Malaysia (SEDA Malaysia) today at 12 noon released just over 9 MW of solar photovoltaic (PV) quota. This quota was from previously submitted solar PV feed-in approval (FiA) applications made on the 2nd April 2013 which were unsuccessful. The 9 MW quota was fully allocated within 15 minutes after opening of quota.

Although a series of workshop had been organized to brief the PV service providers and potential PV investors, Puan Badriyah noted that the submission quality was rather poor resulting in nearly 50% unsuccessful applications.

According to the CEO of SEDA Malaysia, Puan Badriyah Abdul Malek, the total number of applicants for this opening of solar PV quota was 70 and the total capacity allocated was 15.2046 MW.

“The seemingly additional capacity from 9 MW to 15.2046 MW was because most applicants apply for larger PV capacities which had lower FiT rates and some were ground-mounted applications meaning a lower FiT rate because bonus rates for building applications would not be applicable,” said Badriyah.

“We hope this time round, the PV service providers and their clients would be more vigilant in providing quality submissions with full compliance to the requirements,” said Badriyah. After all, it is SEDA Malaysia’s vision to see renewable energy grow in meaningful scale and Renewable Energy (RE) Fund is expended in impactful ways.

The RE Fund was established through the enforcement of the Renewable Energy Act 2011 and is an important part of the FiT mechanism approved by the Government to spear head the growth of the renewable energy in the country.

The main function of the RE Fund is to pay the tariff for electricity generated from renewable sources by renewable energy producers and individuals under the FiT mechanism. It is established from the collection of 1% additional charge on all electricity consumers effective since 1st December 2011 although domestic consumers that have electricity bills of not more than RM77 (or consumed not more than 300 kWh) per month will be exempted from contributing to the RE Fund.

The fund is managed and administered by SEDA Malaysia. On this note, the CEO of SEDA Malaysia assures that the fund is managed with prudence, integrity, transparency, and full accountability. These are the core values embraced by SEDA Malaysia.

Source: Press Release by SEDA Malaysia

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