History Of Feed-In Tariff ( FiT ) System in Malaysia

The passing of the RE and SEDA Acts 2011 in April 2011 did not happen by chance. Introduction of the feed-in tariff (FiT) to Malaysia began as early as 2004, and in 2011, the years of effort finally culminated in the passing of the two laws related to sustainable energy. The result is the dawn of a new era for Malaysia in a move towards achieving energy autonomy and mitigating climate change.

The milestones leading to the implementation of the FiT are as follows (in chronological order) :

The Malaysia Building Intergrated Photovoltaic (MBIPV) Project* submitted a brief document to UNDP/GEF which introduced the feed-in tariff as one of the possible renewable energy policies for consideration.

The MBIPV Project organized a high level meeting and study mission to Germany & Netherlands to enhance the understanding of feed-in tariff, especially in Germany.

The MBIPV Project conducted a seminar on “Policy & Financial Frameworks Promoting Sustainable Photovoltaic Markets” whereby the FiT was discussed as a viable renewable energy policy for Malaysia.

The MBIPV Project submitted a proposal on the Clean Energy Fund to the then Ministry of Energy, Water and Communications (KTAK).

The MBIPV Project completed a report entitled “International Review of Regulatory Schemes For PV” which included a comprehensive report on the FiT.

The MBIPV Project presented to the National Steering Committee (NSC) a “Best Policy for RE/PV in Malaysia” which emphasized the FiT.

The MBIPV Project provided support to KTAK officials to give a special briefing to YB Minister Dato’ Shaziman Mansor (then Minister of KTAK) on the FiT.

The MBIPV Project prepared a report entitled Independent Policy, Regulatory & Financial Analysis for the Ministry of Energy, Water and Communications (KTAK) to further consider the feed-in tariff.

The MBIPV Project prepared a report on “Photovoltaic (PV) Policy Recommendations for Malaysia” which emphasized the FiT. The report was submitted to KTAK and the FiT was subsequently approved by Jawatankuasa Perancangan Pelaksanann Pembekalan Electrick dan Tarif (JPPPET).

The MBIPV Project organized a high level workshop on the FiT.  The MBIPV Project also presented before the NSC an “RE Roadmap” which highlighted the FiT as the key driver of the roadmap.

The MBIPV Project provided support to KTAK officials to give another special briefing to YB Minister Dato’ Shaziman Mansor on the FiT.

The MBIPV Project submitted to the Ministry of Energy, Green Technology and Water (KeTTHA) a report on “RE Policy and Action Plan”.

The MBIPV Project presented the “RE Policy & Action Plan”  to the NSC which highlighted the need for an RE Law in order to implement the FiT more effectively.

The MBIPV Project arranged the following courtesy visits to the YB Minister of KeTTHA :

  •  Dr Winfried Hoffman (Applied Materials/EPIA) –FiT advocate
  •  The late Dr Hermann Scheer(Social Democrat Party, Germany) –FiT pioneer
  •  Mr Hans-Josef Fell (Green Party, Germany) –FiT pioneer
  •  Dr David Jacobs (Brain Gain) – FiT & RE policy expert

Cabinet approved the National RE Policy

FiT incorporated into the 10th Malaysia Plan (chapter 6).

FiT incorporated into the National Budget 2011 (paragraph 34) and Economic Transformation Programme (chapter 6).

1st reading of the RE and SEDA Bills in Parliament.

2nd and 3rd readings of the RE and SEDA Bills in Parliament.

RE and SEDA Bills received the royal assent.

Gazette of the RE and SEDA Bills.

Malaysia Building Integrated Photovoltaic (MBIPV) Project was a joint initiative between the Government of Malaysia, the United Nations Development Program (UNDP) and Global Environment Facility to promote a widespread and sustainable solar PV market in Malaysia (2006-2010). One of the objectives of the Project was to develop a long term BIPV programme that provides 30% annual BIPV growth and further cost reduction to the BIPV systems.