Wednesday, December 11, 2013

FiT mechanism to be implemented in Sabah in 2014

Feed-in Tariff (FiT) is a mechanism introduced in 2011 to promote renewable energy in the country, under the Renewable Energy Act 2011.

The implementation is under the purview of the Sustainable Energy Development Authority (SEDA) Malaysia, an agency under the Energy, Green Technology and Water Ministry (KeTTHA). The Minister concerned happens to be from Sabah as well and it is just fair that we should take part actively in the promotion of renewable energy.

Your contribution to the RE Fund is illustrated on the highlighted column. Source: SESB tariff leaflet

Why do I need to contribute to the fund

It is about participation by the masses, in particular, those who consume large amount of energy. In Malaysia, those consuming 300kWh or more of electricity in a calendar month will contribute to the fund.

The more you consume, the more you pay. So, in a way, it is a means for you to pay your penalty back to nature  for the pollution caused by you for using energy. Note that, for every unit of energy you use, you are 'doing your part' of polluting the environment as power generators emit certain amount of CO2 in the process.

There are cleaner methods of producing electricity but they are more expensive. Because they are more expensive than the conventional fossil-fueled generators, your participation is required, and one way to. Do that is by contributing to the Renewable Energy Fund (RE Fund).

In Malaysia the RE Fund is managed by SEDA. TNB and SESB are only helping in collecting the levy from us. These utility companies will then channel the money to SEDA and they don't get a single cent from the collection.

From the available fund, SEDA would then formulate FiT rates which makes investment in renewable energy plants viable for companies and individuals.

But 1.6% of my total bill amount is too much!

If you ask me this, I'll say I agree with you.

When the fund was first created, SEDA only collect 1% from big consumers, plus, the government put an opening fund amount of RM300 million. I understand that the fund quickly evaporated as SEDA started to disburse payment to FIAHs and as it released more quota for solar PV to individuals and non-individuals.

That was when they proposed to collect additional 0.6% from consumers. Some interpreted this as 'sucking more blood from the rakyat'. I am neutral as far as quantum is concerned. But I believe it should be done in parallel with something.

And that something is none other than additional contribution from the government. The initial RM300mil is long gone, you need to inject more money if you are being fair to the consumers who are being levied 1.6%

I say the government need to and should contribute! Start small. For every Ringgit that is collected from consumers, the government match it with RM1.00 then we'll see how it develop.

TheGreenMechanics: Come January 1, I will be one of those affected by the FiT levy, so, I'll be watching the development very closely. Please don't squander the money you collect from my pocket. I support renewable energy, so, let's make this RE venture a successful one.

One day, I'd like to see my roof covered with 20m2 of efficient PV panels giving me 8kWp of solar power.

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