Achieving Circular Economy through

Sustainable Energy

Dr Wei-nee Chen

Chief Corporate Officer, Corporate Department

Sustainable Energy Development Authority (SEDA) Malaysia

10th June 2019

SEDA was established on 1st September 2011 under the SEDA Act 2011 [Act 726] with some of the following functions (S15): • implement, manage, monitor & review the Feed-in Tariff (FiT)

system; • advise the Minister & Government Entities on all matters

relating to sustainable energy; • to promote & implement national policy objectives for RE;

• implement sustainable energy laws including the Renewable

Energy Act & recommend reforms;

• promote private sector investment in sustainable energy sector

• measures to improve public awareness;

• act as focal point on matters relating to sustainable energy &

climate change matters relating to energy.

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Functions of SEDA

Coal; 10.546; 31%

Distillate / diesel; 1.226; 4%

Natural gas; 14.701; 43%

Large hydro; 5.692; 17%

Biomass; 760; 2%

Biogas; 78; 0%

Small hydro; 483; 1%

[CATEGORY NAME]PV, [VALUE], [PERCENTAGE]

Others; 170; 0%

NATIONAL POWER MIX* (DEC 2018)

Total : 34,392 MW RE (excl large hydro) : 6% RE (incl large hydro**) : 22.5% * Includes off-grid **Large hydro > 100 MW

Source: SEDA, ST, MoU

By Bernama - November 27, 2018 @ 9:57pm

KUALA LUMPUR: The government is optimistic of achieving its target of 20% electricity generation from renewable energy (RE) sources, equivalent to 3,991 MW, over the next seven years via various initiatives, programmes and policies. To realise this target, Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin said the government would engage with industry players and study the relevant policies. Though the country’s clean energy generation is only at two per cent currently, the target could be reached with the implementation of various programmes, including net energy metering (NEM), feed-in-tariff (FiT) and large-scale solar (LSS) programme, she said.

Solar Rooftop

SEDA will release

quota for small hydro and biomass by Q3 2019

RENEWABLE ENERGY PROJECTS STATUS - FIT & NEM (APRIL 2019)

No. RE Type

Commissioned (MW) In Progress (MW)

No of Applicants

Capacity (MW)

No of Applicants

Capacity (MW)

1 Biomass 10 95.55 10 91.29

2 Biogas 39 71.44 53 96.2

3 Small Hydro 8 50.30 27 291.39

4 Solar PV 10,193 384.62 408 6.81

5 Solar PV (NEM)

314 22.42 447 27.64

Total 10,564 624.33 945 513.33

5,16 11,74 12,84 20,23 35,69 58,23 69,94 71,44

36,90 36,90 49,40 70,20

89,70 89,70

95,55 95,55

11,70 11,70 11,70

18,30

30,30 30,30

50,30 50,30

31,54

138,56

203,70

264,04

341,88

380,54

384,61 384,62

0,97

9,97 22,42

0

100

200

300

400

500

600

2012 2013 2014 2015 2016 2017 2018 2019

CUMULATIVE INSTALLED RE CAPACITY UNDER FIT & NEM (APRIL 2019)

BG BM SH SOLAR PV SOLAR PV (NEM)

Solar PV Technical Potential (by region)

Source: SEDA; Roland Berger

Peninsular Malaysia [MW]

Ground mounted

Solar resource

10% of total suitable land

Rooftop

Floating

34,035

9,487

94,868

4,743

5,194

97,167

9,717

4,858

1,553

17

Sabah [GW] Sarawak [GW]

11,343

909

18,185

1,819

2,285

5% of total suitable land

1) Exclude forested land, agriculture land, mountainous areas, water bodies, urban areas and industrial area

100% of total suitable1) land

NEW SOLAR PV BUSINESS BEHIND-the-METER (BTM)

• In line with global trend, the NEM and the SELCO has spawned new solar PV business behind-the-meter (BTM);

• Electricity consumers: additional choice of solar leasing & PPA or hybrid of both from solar PV investors;

• Counter-party risk reduced by TNB’s SARE.

SOLAR PV INVESTORS

Foreign Company Local Company

Solar PV projects of above 250kW only Solar PV projects of all Capacity

• Companies must be incorporated in Malaysia; • Companies must have minimum paid-up

capital of at least RM10 million; • A minimum of 80% local employment is

required. To submit company’s organization chart reflecting the min 80% of local employment;

• Companies are required to have 100% local Engineering, Procurement and Construction (EPC) by engaging Registered PV Service Providers with SEDA;

• Leasing company is not allow to register as a PV Service Provider;

• Must be a Registered Solar PV Investor with SEDA.

• Companies must be incorporated in Malaysia;

• Companies must have minimum paid-up capital of at least RM1million;

• Project EPC can be carried out by themselves or awarded to the Registered PV Service Provider with SEDA;

• Leasing company can be a Registered PV Service Provider with SEDA;

• Must be a Registered Solar PV Investor with SEDA.

RENEWABLE ENERGY TRANSITION ROADMAP (RETR) 2035

To determine the future of electricity system and the RE targets in the electricity mix and total primary energy supply (up to 2035);

To determine the strategies, comprehensive action plans and resources required to transit to this future of electricity system and achieve the RE targets;

To determine the impact indicators with measurable economic, social, and environmental benefits of the strategies for RE on annual basis until 2035.

Globally, Corporate PPAs are driving the growth of RE markets

Of the 32 GW in deals signed since 2008, 86% came in the last 3 years and 40% occurred in 2018. https://about.bnef.com/blog/corporate-clean-energy-buying-surged-new-record-2018/

Voluntary REC Market

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• A renewable energy certificate (REC) represents all environmental attributes of 1 MWh of energy generated from renewable energy;

• RECs are tradeable, buyers are typically companies with requirements to fulfil ESG compliance;

• RPVSPs, RPVIs: REC aggregator esp for small PV systems.

FUTURE OF ELECTRICITY: DIGITALIZATION – INNOVATION- DEMOCRATIZATION

• Consumer level: prosumers, IoT appliances, control of electrical and thermal systems, intelligent homes, intelligent commerce and services, EVs with charging, energy storage, rooftop PV, peer-to-peer trading, connection and exchange with local or distribution grid, solar home systems with small storage in stand-alone systems, PAYGO;

• Local networks: mini-grids in stand-alone mode possibly including exchange (feeding into, drawing from) with secondary distribution grid, interchange of energy and services, platform (e.g. blockchain) and local grid independent or operated by a third party;

• Secondary distribution level (low to medium voltage): connected to local grids or individual consumers/prosumers (residential, commerce and services, small industry customers) that are also self-generators (prosumers), exchanging power and supplying services, supplying EV charging stations, operating or connecting to energy storage, thermal (heating, cooling) supply coupled to power (power-to-heat), flexible switchgear to allow upward flow.

https://www.researchgate.net/profile/Philipp_Creutzburg/publication/326579896_Transformation_of_the_Power_Sector_and_Its_Framework_in_Developing_Countries/links/5b61c13ca6fdccf0b205a834/Transformation-of-the-Power-Sector-and-Its-Framework-in-Developing-Countries.pdf?origin=publication_detail

“The above changes in progress are seen as a precursor to a digitally regulated energy market and emergence of blockchain technology, which can enable peer-to-peer trading in the future”.

“.. there is a need to move towards an open energy market and introduce competitive retail service providers.”

Yeo Bee Yin, Malaysia’s energy and environment minister, gave a press briefing this week

on the country’s renewable energy policy. She said the government is currently working on a

Renewable Energy Transition Roadmap (RETR) through to 2035 that will include strategies

and action plans to reach its renewable energy target of 20% by 2025. The roadmap is still in

the early planning stage but a final version will be published by the end of the year, Yeo

said. The ministry has already disclosed that it is examining programs under which

customers would have the option to buy 100% renewable energy from power utilities.

Additionally, it is assessing the potential costs and benefits of a market for mandatory

renewable energy certificates (RECs). At the moment, the REC market is purely

voluntary. Lastly, the minister said that Malaysia will look into the possibility of enabling

virtual net metering and peer-to-peer energy trading for solar prosumers.

Source: EdgeProp 25 May 2019

Energy Demand Management • Provide advisory, implementation, technical services and

management of voluntary and mandated Energy Efficiency program. • Climate Change Mitigation Projects (UNDP)

• Green Technology Application for the Development of Low Carbon Cities (GTALCC); and

• Building Sector Energy Efficiency Project (BSEEP). • Energy Audit Conditional Grant for Commercial Buildings (RMK11); • Development of Energy Efficiency & Conservation Act (EECA); • Low carbon building facilitation programme for local Authorities,

State & Federal Agencies; • EE / Low Carbon ICT Programme

Competency Development

• Energy Audit in Buildings

• Energy Mgmt Training Program

• Grid-Connected PV Systems Design Course

• Grid-Connected PV for Wireman & Chargeman

• Off-Grid PV Systems Design Course

• CDP for Grid-Connected PV Design Qualified Persons

• Solar PV Installation and Maintenance

• O&M Biogas Power Plant

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SEDA’s Publications

THANK YOU For further enquiries, please contact:

SEDA Malaysia

Galeria PjH, Level 9

Jalan P4W, Persiaran Perdana,

Presint 4, 62100 Putrajaya

T : +603 – 8870 5800

F : +603 – 8870 5900

E : weinee.chen@seda.gov.my

@SEDAMalaysia

SustainableEnergyDevelopmentAuthority-SEDAMalaysia

www.seda.gov.my