MP SPEAKS In a briefing given by Ir Dr Ali Askhar Sher Mohamad, chief operating officer (COO) of the Sustainable Energy Development Authority (SEDA) on April 11, 2014 regarding changes to the Feed in Tariff (FiT) application process, it was revealed that the online submission process will no longer be used for Solar PhotoVoltaic (PV) quotas which are more than 425kW and that this will be replaced by a manual application .

This proposed changed was due to instructions from the Energy, Green Technology and Water Ministry and the exact details of the application process are still being reviewed by the ministry.

While there may be some legitimate reasons for the applications to be submitted and reviewed manually - such as to check for compliance and to review the technical aspects of the application – the fact that SEDA and the ministry have not finalised the bidding and application process raises many concerns.

Will this lead to, for example, the ministry having power to decide which companies to award the FiT quota to for large solar projects? Will this also lead to the possibility of directly negotiated projects between a project owner and the ministry?

In the same briefing given by the COO of SEDA, 30MW of quota for Geothermal Power is supposed to be awarded for the year 2016 (see Table 1 above). Is it mere coincidence that Tawau Green Energy (TGE) Sdn Bhd, the first geothermal power plant in Malaysia, is expected to add 30MW to Sabah’s grid by the 2nd quarter of 2016?

It was reported in March 2014 that:

“Last November, TGE signed a Renewable Energy Power Purchase Agreement (REPPA) for 21 sen per kilowatt hour with Sabah Electricity SdnBhd (SESB) to supply 30MW to SESB’s grid from the geothermal power plant. They hope to migrate to the FiT with SEDA Malaysia approval.”

Decision already made?

Does this mean that SEDA had already decided to award this 30MW FiT quota to Tawau Green Energy (TGE) through a direct negotiation and not via an open tender? Are the terms of this contract more lucrative than the 21 sen per kWh contract signed with the Sabah Electricity SdnBhd (SESB)?

In addition, 15MW of the FIT quota will be allocated to biomass (solid waste) in 2017. Is it also mere coincidence that 2017 is the expected commissioning date of the Waste to Energy (WTE) plant in Taman Beringin, Kepong?

Does this mean that the ministry and Seda already know the technology which will be selected for the Waste to Energy plant in Kepong and that it will involve the direct burning of waste? (For example, if an anaerobic digestion system is proposed, it will use up the biogas rather than the biomass FiT quota.)

Why is it that those who are bidding for smaller projects such as Solar PV FIT quotas for individuals must submit their applications online, obtain a queue number and then go through an open balloting process while the ‘big boys’ are not forced to go through a similar process that is as open and transparent?

This development comes on the heels of the decision to award 1MDB a 50MW solar farm project in Kedah via a direct negotiation. While this project is not funded by the FiT quota, one must take note of the fact that 50MW is more than the combined allocation for Solar PV for individuals, non-individuals and community projects for 2014 which only comes up to 40MW for 2014!

I urge the Energy, Green Technology and Water Ministry to adhere to principles of openness and transparency for all the players and stakeholders in the renewable energy sector rather than giving priority and access to only the ‘big boys’.

DR ONG KIAN MING is MP for Serdang.