MALAYSIA: Renewable Energy Act 2011 (Act No. 725 of 2011)

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2011
Effective Start Year: 
2011
Scope: 
National
Document Type: 
Act
Economic Sector: 
Energy, Power
Energy Types: 
Power, Renewable, Bioenergy, Hydropower, Solar, Other
Issued by: 
Government of Malaysia
Overall Summary: 
The Renewable Energy Act was enforced in 2011 to accelerate contribution from green energy such as solar photovoltaic (PV), biomass, biogas and mini hydro in Malaysia’s electricity generation mix. The Act provides for the establishment and implementation of FiT special tariff system to catalyse the generation of renewable energy.---Authority means the Sustainable Energy Development Authority.
Renewable Energy
RE feed-in tariffs: 
There is hereby established a feed-in tariff system to provide for: a) the connection to supply line connection points for the distribution of renewable energy generated by renewable energy installations which are owned by feed-in approval holders; b) the priority of purchase and distribution by distribution licensees for renewable energy generated and sold by feed-in approval holders; and c) the feed-in tariff to be paid by distribution licensees to feed-in approval holders for such renewable energy. The feed-in tariff system shall be administered and implemented by the Authority in accordance with the provisions of this Act.---Eligibility for participation in feed-in tariff system: A person shall be eligible to apply for a feed-in approval allowing the person to participate in the feed-in tariff system if: a) the person proposes to generate renewable energy from a renewable energy installation having an installed capacity of not more than thirty megawatts or such higher installed capacity as may be approved by the Minister [...].---Where a renewable energy installation has been connected to a supply line connection point [...], a distribution licensee shall, as priority over the electricity generated from resources other than renewable resources, purchase and distribute through the supply line the entire available quantity or renewable energy generated by a renewable energy installation owned by a feed-in approval holder [...].---Upon the determination by the Authority that a particular renewable energy installation has achieved grid parity [...] a feed-in approval holder such renewable energy installation shall not be entitled to be paid the feed-in tariff and shall instead be paid by the distribution licensee a tariff that is based on the prevailing displaced cost for the remaining duration of the effective period [...]. See Schedule (Section 2) for: Renewable resources, fed-in tariff rates, effective period and annual degression rates.
Investment
Financial incentives for energy infrastructure: 
A fund to be known as the “Renewable Energy Fund”is established and shall be administered and controlled by the Authority. 
Governance
M&E of policy implementation: 
The Authority shall monitor all significant matters relating to the implementation and performance of the feed-in tariff system and submit a report thereof to the Minister after the end of each financial year of the Authority.