The implementation of the Feed-in Tariff by SEDA that was focused on large companies has been a massive failure. Focus instead should be given to individual quotas.

Media Statement by Dr. Ong Kian Ming, MP for Serdang, in Kuala Lumpur on the 26th of September 2013

According to the SEDA 2011 Annual Report, a total of 380MW of the Feed-in-Tariff quota has been released by SEDA for the year 2012 (190MW) and 2013 (190MW). According to SEDA’s website, only a pitiful 120MW or 31% has been successfully installed as of today (See below).[1] For the year 2013, the figure is 15MW or 8% of the 190MW released.

Installed Capacity (MW) of Commissioned RE Installations
Year Biogas Biogas ( Landfill / Sewage ) Biomass Biomass ( Solid Waste ) Small Hydro Solar PV Total
2012 2.00 3.16 43.40 8.90 15.70 31.53 104.69
2013 3.38 0.00 0.00 0.00 0.00 11.86 15.24
Cumulative 5.38 3.16 43.40 8.90 15.70 43.39 119.93

In a parliamentary I received on the 23rd of September, it was stated that 31MW for 11 holders of the FIT quota has had their applications revoked because of non-compliance with the rules and conditions. In the same reply, I was also told that 92 holders of the FIT with a capacity of 190.76MW were given extensions to their commissioning date deadlines. A majority of these extensions – 77% – (71 out of 92) affecting 92% of the quota (175.2MW out of 190.76MW) were for a period of more than two months. This means that more than half of the FIT quota for 2012 and 2013 – 221MW or 58.3% (out of 380MW) – was either delayed or cancelled. And we have not even reached the end of 2013 yet!

My colleague, Tony Pua, and I recently raised the issue of why some of the quotas that were initially revoked by SEDA were then overruled by the Minister.[2] At the same time, I received information from industry sources that 40 companies which applied for FIT quotas earlier this year have not yet heard from SEDA (either a rejection or approval). This means that their precious capital is tied up and cannot be used for other business activities.

SEDA released a measly 500kW of quotas of solar for individuals on the 28th of August, 2013, and this quota was taken up without the first hour. SEDA had to postpone the release of another 1000kW to a future date because overwhelming demand from individuals.

The implementation of the FIT scheme by SEDA has been a massive failure. Instead of focusing on the big companies, who have failed to deliver thus far, SEDA should instead shift its focus to allow a larger % of the FIT quota to individuals. Right now 81% of the quota for Solar Power is allocated to non-individuals (>0.5MW). By giving out more individual FIT quotas, the risk of non-instalment is spread across a larger number of players. More people especially small companies / SMEs who can install the solar panels can also benefit. In the upcoming Pakatan Rakyat Alternative Budget for 2014, more measures to encourage small players to participate in the renewable energy will be introduced.