Malaysia’s Ministry of Energy and Natural Resources (‘KETSA’
) has issued an official statement1
’) with respect to, among others, the operation of the electricity supply sector and renewable energy developments during the nationwide total lockdown which is in effect from 1 to 14 June 2021 (referred as the Full Movement Control or ‘FMCO
This Alert focuses on the key points in the KETSA Statement in relation to these sectors.
ACTIVITIES IN RELATION TO ELECTRICITY SUPPLY SECTOR IN PENINSULAR MALAYSIA AND SABAH
During the FMCO, activities that are necessary to ensure continuous electricity supply are allowed to be carried out. Such activities consist of the following:
ACTIVITIES IN RELATION TO RENEWABLE ENERGY DEVELOPMENTS
KETSA’s position is that work relating to the development of renewable energy projects under the Large Scale Solar (LSS) Programme, Net Energy Metering (NEM) Programme, and Feed-In Tariff (FiT) Programme are not allowed
during the FMCO. However, an exception is granted for existing renewable energy projects that are required to be operated in order to ensure public safety as well as on-site safety.
For power plants already in operations and connected to the grid, which includes mini hydro, solar, biomass and biogas plants, only daily operational works may be carried out. It is encouraged for the workforce capacity to not exceed 30% and the maximum workforce capacity allowed is 50%. The percentage of management level personnel should not exceed 10%.
PERMISSION TO OPERATE DURING FMCO
Companies that have not obtained official approval from KETSA to operate during the FMCO will have to apply for permission to operate by way of the Ministry of International Trade and Industry’s Covid-19 Intelligent Management System (CIMS).
The KETSA Statement serves to clarify the type of works that may be carried out in relation to the electricity supply sector and renewable energy projects. It provides a certain amount of reassurance to consumers as electricity supply should not be affected by the FMCO. However, for stakeholders in renewable energy developments, this is unfortunate news which will likely have an impact on the progress and cost of ongoing construction works for such projects.
Alert by Rachel Chiah (Senior Associate) of the Construction & Engineering Practice of Skrine.