Monday, August 19, 2013

SEDA pays out RM38 million to Renewable Energy feed-in approval holders

As of June 2013, SEDA Malaysia has paid about RM38 million to feed-in approval holders (FiAH) in the country.

What is Feed-in Approval Holder (FiAH)

FiAH is an individual or company who holds a feed-in approval issued by SEDA Malaysia, and the holder is eligible to sell electricity from renewable energy sources.

Example: If you have applied for FiT for installation of rooftop Solar PV from SEDA, and your application have been approved, you become a Feed-in Approval Holder.

FiT Quota Allocation
Small Hydro
Solar PV (individual)
Solar PV 
Approved no.of applications
Approved capacity (MW)
Source: SEDA,    as of June 2013

RM38 million disbursed so far

Under the Renewable Energy Act 2011, individuals or non-individuals can sell electricity generated from renewable energy (RE) resources back to power utility firms at a fixed premium price for a specific time.

The four RE resources that are eligible for feed-in-tariff are biogas, biomass, small hydropower and solar photovoltaic (PV).

The payment is financed by an RE Fund contributed by electricity consumers who consume more than 300kWh of electricity per month. The current 1% extra charge translates to about RM300mil per annum.

“The amount of quota to be released depends on the amount of RE Fund which comes from the 1% extra charge currently imposed on the electricity tariff. The release of new quotas would depend on the next extra 1% supposed to be imposed in the next electricity tariff review, which is yet to be announced by the Government.” - SEDA Malaysia interviewed by StarBiz.

Can FiAH be revoked?

SEDA would not hesitate to revoke the licences given to FiAH who did not comply with the required project milestones. However, it is a tedious process to revoke FiAH and the revocation was legal, and thus, the authority would need some time to check if all milestones had been met.

The basis for revocation is always because FiAHs are unable to meet their milestones on project progress despite repeated reminders.

As of June 30, Seda had approved a total of 1,614 applications, with a total capacity of 480.45 MW, out of which 189.78 MW was from Solar PV.

Source: TheStar

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