Indian companies are looking to invest in Malaysia’s renewable energy feed-in tariff scheme, an official at Malaysia’s largest power utility has revealed. The feed-in tariff regime is part of Malaysia’s new mechanism under the Renewable Energy Policy and Action Plan and the Renewable Energy Act 2011 to promote generation of renewable energy.
The Malaysian government is also promoting microgrid power projects and some Indian companies have expressed interest in becoming technology partners in such projects. Representatives of some Malaysian companies were participating in the ASEAN-India Workshop on Cooperation in Renewable Energy.
Malaysia’s feed-in-tariff system obligates the distribution companies to buy electricity generated from the renewable energy sources from the Feed-in Approval Holders (FiAHs) at a fixed premium price for a specific duration. This program is a part of Renewable Energy Policy and Action Plan and Renewable Energy Act 2011, which aims to catalyze the development of renewable energy projects up to 30 MW in size.
According to the Sustainable Energy Development Authority (SEDA) of Malaysia, authority responsible for managing and oversees the FiT system, a company incorporated in Malaysia having a foreign person, (alone or together with other foreign persons), holding no more than 49% of voting power or the issued share capital of such company can apply for feed-in approvals.
SEDA has also recently announced that it is opening 20 MW of non-individual solar photovoltaic feed-in-tariff quotas for installation for the projects due to be commissioned next year.
Indian companies have gained significant expertise in development of renewable energy projects, both large- and small-scale. India is among the top generators of wind energy. The country leapfrogged to over 1,000 MW solar power capacity from just 8 MW in a span of one to two years.
Competition has increased significantly over the last few months, specifically in the solar energy sector due to steep fall in the capital cost. This has led to a similar fall in the feed-in tariffs offered by the government. It seems natural that the Indian companies are now scouting new developing markets.
The views presented in the above article are the author’s personal views only.
Mridul Chadha currently works as Head-News & Data at Climate Connect Limited, a market research and analytics firm in the renewable energy and carbon markets domain. He earned his Master’s in Technology degree from The Energy & Resources Institute in Renewable Energy Engineering and Management. He also has a bachelor’s degree in Environmental Engineering. Mridul has a keen interest in renewable energy sector in India and emerging carbon markets like China and Australia.