Renewable Energy: Government amends feed-in-tariff terms for biomass and small hydropower installations
23 December 2019
In the exercise of the powers under section 63 of the Renewable Energy Act 2011 (‘REA’), the Minister of Energy, Science, Technology, Environment and Climate Change of Malaysia issued the Renewable Energy (Amendment of Schedule) (No.3) Order 2019
(‘Amendment Order’) to amend the Schedule to the REA.
In essence the Amendment Order will amend the Schedule to the REA as follows –
The effective period for fee-in-tariff for all forms of biomass resources described in the Schedule is increased from 16 years to 21 years from the feed-in-tariff commencement date.
B. Small hydropower
The feed-in-tariff rate and the qualifying criteria for small hydropower installations is amended as follows –
- an installation that has an installed capacity not exceeding 30MW with net head of more than 10 metres will have a feed-in-tariff rate that ranges from RM0.2300 to RM0.2599 per kilowatt hour; and
- an installation that has an installed capacity not exceeding 30MW with net head not exceeding 10 metres will have a feed-in-tariff rate of RM0.2900 per kilowatt hour.
Prior to the amendment, the feed-in-tariff for small hydropower installations was divided into three categories, namely installations having an installed capacity not exceeding 2MW, installations having an installed capacity exceeding 2MW but not exceeding 10MW and installations having an installed capacity exceeding 10MW but not exceeding 30MW with prescribed basic feed-in-tariff rates of RM0.26, RM0.25 and RM0.24 per kilowatt hour respectively.
The Amendment Order comes into operation on 23 December 2019.
Alert prepared by Anita Natalia (Senior Associate) of Skrine.