The Renewable Energy Act and Opportunities

In 2011, the Renewable Energy (RE) Bill passed in Parliament of Malaysia. The Act  is to support Malaysia’s aspiration to become a leader in green technology, and to meet 40% carbon emission intensity reduction target by 2020.  The new Act will enable the implementation of the Feed-in Tarrif (FiT) in Malaysia from 2011 and the total renewable energy capacity in the country is expected to increase significantly from approximate 60MW currently to at least 2,080MV by 2020. 

The FiT is Malaysia’s new mechanism under the Renewable Policy and Action Plan to catalyze generation of RE, up to 30MW in size.  This mechanism allows electricity generated from renewable sources (Biogas, Biomass, Solid Waste, Small Hydro, Solar PV) to be supplied to the electricity grid for a specific duration.  Renewable Energy is also a key component in the Economic Transformation Programme (ETP), in realizing Malaysia vision to become a high income nation.

Foreign corporations are welcome to participate in generation of RE especially through the solar power.