Do we have enough quota??? Or the quota already dried out??
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Tuesday December 13, 2011
Now you and I can also be an independent power producer
In the mid-1990s, there were only “big” boys in electricity generation such as
YTL Corp,
Genting Sanyen and Malakoff. They were popularly known as Independent
Power producers' or IPPs and were looked upon with envy as it was
alleged that they were making big bucks because of relatively high rates
they received from TNB.
Fast forward 15 years. Now you and I can
also be an IPP (the term “clean and sustainable electricity producer”
is preferred) albeit a very much smaller one but with a difference.
Any
owner of a link, semi-detached or bungalow house can now be, subject to
approval, a small clean and sustainable energy producer by generating
green electricity (as opposed to fossil-fuelled electricity by the big
IPPs) and distribution licensee (such as
TNB)
is obliged to purchase it. What all this means is that if you have a
solar photovoltaic (PV) generator at home, you can apply to connect this
generator to the grid, and get paid for selling the electricity
generated to TNB over the next 21 years.
Solar
energy is clean, environmentally friendly and has zero emissions. There
is no depletion of natural resources and it is one of the fastest
growing energy sources in the world.
And yes the rates are very
attractive for generating electricity using solar photovoltaic (PV)
technology; it is about four times the normal domestic TNB electricity
rates (at RM0.40 per kWh). All you have to do is simply to apply and
obtain a feed-in approval from the newly-established Sustainable Energy
Development Authority Malaysia (Seda Malaysia), sign a renewable energy
power purchase agreement (REPPA) with TNB and install the solar PV
system on your rooftop.
On the average, the bungalow is able to
produce about 1,000 kWh of electricity per month (based on 10kW
installed PV capacity). Given this, the owner may earn about RM1,200 per
month (based on FiT rate RM1.20 per kWh if the PV system is
commissioned by 2012) and recoup his investment within eight to nine
years. The earnings may be even higher if the house owner meets other
bonus criteria such as installing as a building-integrated PV system.
The current cost of 1 kW solar PV system ranges from RM12,000 to
RM14,000.
The interesting thing is that for your average
household needs, you purchase the electricity from TNB at between RM0.33
to 42.6 per kWh but when you produce the clean electricity, you can
sell it at between RM1.20 to RM1.70 per kWh depending on the installed
capacity and the qualifying bonus criteria for solar PV.
The
longer the sun shines, the more one can “export” electricity to the
national grid during daylight hours (when power is urgently needed) and
earn income. The downside and risk is that during cloudy days, the
income can be reduced significantly when the sun is not shining. If you
apply now, you can lock in these premium rates for the next 21 years!
Unlike
the huge IPPs which use natural gas or coal as feedstock to generate
electricity, the household does not need to pay for any raw material or
fuel because sunshine is free. For as long as the sun is shining, the
solar PV panels will generate electricity. Another advantage of solar
power is that no extra space is required because the panels can be
installed on the rooftop. (Suddenly rooftops have income potential. Many
factory owners are now contemplating installing solar PV panels on
their rooftop to earn extra revenue while others are approaching factory
owners to rent them their roofs.)
On Dec 1 2011, Seda Malaysia
invited the public including households, small and not-so-big IPPs
(maximum size is 30 MW but only 5 MWp rated capacity for solar PV) to
apply and book the amount of green electricity they intended to produce
to sell it to the distribution licensee. There are fixed quotas for each
of the four renewable energy sources namely biomass (including solid
waste), biogas (including landfill), small hydro and solar PV. There was
overwhelming response to solar PV especially for the non-individuals.
The
good news is that bookings are still open for individuals and
households intending to install solar PV systems as there is still
available capacity for this category. As at Dec 7, Seda reported that
the total unfulfilled quota for solar PV is 6,650 kW; 1,650 kW to be
commissioned by the first half 2013, 2500 kW each for second half of
2013 and first half of 2014.
Translating these figures into
households, it would mean that about 665 bungalow owners can avail
themselves to the remaining capacity (assuming their average capacity is
10 kW). If all of the remaining capacity is taken up by semi-detached
owners, the number will increase to 1,330 assuming their installed PV
capacity is 5 kW. The figure for typical link houses, assuming an
installed capacity of 3 kW, is 2,217 households.
The price
guarantee for 21 years has been made possible by the Feed-in Tariff
(FiT) scheme implemented by Seda Malaysia. This scheme will be financed
by the newly-established Renewable Energy (RE) Fund, to which all
electricity users (except for those domestic customers consuming less
than 300 kWh per month) will be required to contribute an additional 1%
of their electricity bill.
House-owners who do not participate in
solar PV electricity generation should not begrudge the payment of the
additional 1%. Instead they should view it as one of their contributions
to a cleaner and healthier environment. This is their social
contribution for cleaner air. The public and community must also share
in undertaking this heavy responsibility with the Government.
Dr
Pola Singh is a board member of the Sustainable Energy Development
Authority (Seda), Malaysia. The views expressed are his own. The public
can apply for the feed-in approval via efit.seda.gov.my and more
information can be obtained from Seda's official portal at
www.seda.gov.my
