MALAYSIA: National Renewable Energy Policy and Action Plan

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2009
Effective Start Year: 
2009
Scope: 
National
Document Type: 
Overarching Policy, Plan/Strategy
Economic Sector: 
Energy, Power
Energy Types: 
Power, Renewable, Bioenergy, Hydropower, Solar
Issued by: 
Minister of Energy, Green Technology and Water
File: 
Overall Summary: 
The National Renewable Energy Policy and Action Plan identifies the need and rationale for a convergence of energy, industrial growth, environmental and information dissemination policies and proposes a new and forward-looking Renewable Energy (RE) Policy. After an Introduction it analyses: Key Facts; Key Issues Affecting RE Development; Need For RE Policy And Action Plan; Renewable Energy Resources and SMART Targets; The Renewable Energy Policy; RE Action Plan: Implementation Approach; Evaluation Criteria and Success Indicators and finally draws Conclusions.
Renewable Energy
RE priorities: 
Enhancing the utilisation of indigenous renewable energy resources to contribute towards National electricity supply security and sustainable socio-economic development. ---Policy Objectives: (1) To increase RE contribution in the national power generation mix; (2) To facilitate the growth of the RE industry; (3) To ensure reasonable RE generation costs; (4) To conserve the environment for future generation; and (5) To enhance awareness on the role and importance of RE.---RE Strategic Thrusts: Thrust 1: Introduce Appropriate Regulatory Framework; Thrust 2: Provide Conducive Environments for RE Businesses; Thrust 3: Intensify Human Capital Development; Thrust 4: Enhance RE Research and Development; Thrust 5: Design and Implement an RE Advocacy Programme.
RE targets: 
RE Policy Planned Outcome: Year 2011: Share of RE Capacity: 1% RE Mix: 1%; Year 2015: Share of RE Capacity: 6% RE Mix: 5%; Year 2020: Share of RE Capacity: 10% RE Mix: 9%; Year 2030: Share of RE Capacity: 13% RE Mix: 10%; Year 2050: Share of RE Capacity: 34% RE Mix: 13%.---[T]he development of RE has to be accelerated to grow at 18% of compounded annual growth rate (CAGR) from 2010 to 2030. [...] The overall SMART targets for short, medium and long term are as follows: Electricity Capacity Mix: By 2015, total capacity from RE is targeted to reach 975MW or 6% of total peak electricity demand capacity by 2015; Electricity (Energy) Mix: By 2015, total electricity mix from RE is targeted to reach 5.3 TWh/year or 5% of total electricity generated. Electricity Capacity Mix: By 2020, total capacity from RE is targeted to reach 2,065 MW or 11% of total peak electricity demand capacity by 2020; Electricity (Energy) Mix: By 2020, total electricity mix from RE is targeted to reach 11.2 TWh/year or 9% of total electricity generated. Electricity Capacity Mix: By 2030, total capacity from RE is targeted to reach 3,484 MW or 14% of total peak electricity demand capacity by 2030; Electricity (Energy) Mix: By 2030, total electricity mix from RE is targeted to reach 16.5 TWh/year or 11% of total electricity generated.---See Table 5.7 for detailed SMART Targets.---SeeTable 7.8 for possible RE Target for GLCs.
RE action plans: 
Actions Required for RE Development: [...] (1) Introduce a regulatory framework which addresses the following key points: [...]; (2) Develop a cost sharing mechanism and determine payment obligations; (3) Introduce good governance system to ensure consistency of applications; (4) Introduce clarity of roles between the implementing agency and the agency tasked with oversight functions to ensure full accountability; and (5) Disseminate relevant and pertinent information to firms intending to participate in the RE industry, to minimise information costs.
RE feed-in tariffs: 
The regulatory framework should provide for the introduction of a feed-in-tariff (FiT) [...].---See Table 7.4: FiT Rates and Degression for details on the proposed FiT Rates.
RE public awareness/promotional programmes: 
Policy Objectives: [...] (5) To enhance awareness on the role and importance of RE.
Environment
Energy environmental priorities: 
Policy Objectives: (4) To conserve the environment for future generation.
Pricing
Energy pricing: 
Actions Required for RE Development: [...] (1) Introduce a regulatory framework which addresses the following key points: [...] (f) Provide for society to contribute towards the cost of RE (via a contribution system based on consumption of energy).
Energy Supply and Infrastructure
Energy supply priorities: 
Enhancing the utilisation of indigenous renewable energy resources to contribute towards National electricity supply security and sustainable socio-economic development.
Energy mix: 
To increase RE contribution in the national power generation mix;
Investment
Financial incentives for energy infrastructure: 
Actions Required for RE Development: [...] (1) Introduce a regulatory framework which addresses the following key points: [...] (g) Creation of a fund in which the contributions are to be paid into including the terms of operation and use of the fund.---Provide funds by the Government; and continue with the R&D fiscal incentives is required. Funds would be subject to the performance and monitoring framework.
Public Private Partnerships: 
Design an effective institutional framework, where the joint venture of public and private sectors is reflected in a cooperative research centre [...].
Governance
Energy management principles: 
Actions Required for RE Development: [...] (3) Introduce good governance system to ensure consistency of applications.
National policy structure: 
Actions Required for RE Development: [...] (1) Introduce a regulatory framework which addresses the following key points: (a) Market failure issues pertaining to RE plants including information asymmetry and the existing constraints; (b) Provide certainty to investors; (c) Minimise regulatory or political capture by interested parties; (d) Setting of RE prices based on sound economic principles; (e) Establishment of an effective implementing agency for renewable energy development; (f) Provide for society to contribute towards the cost of RE (via a contribution system based on consumption of energy); and (g) Creation of a fund in which the contributions are to be paid into including the terms of operation and use of the fund.
Energy institutional structures: 
Actions Required for RE Development: [...] (1) Introduce a regulatory framework which addresses the following key points: [...] (e) Establishment of an effective implementing agency for renewable energy development. [...] (4) Introduce clarity of roles between the implementing agency and the agency tasked with oversight functions to ensure full accountability.
Technology
Clean energy technology priorities: 
Requirement of establishment of an RE research lab/ Centre of Excellence which the research cooperatives can use.---Without adequate skilled workers R&D programmes have a low chance to succeed. Therefore: (i) Permit the importation of high quality foreign skilled workers (i.e. knowledge workers) to address the immediate shortage. (ii) Encourage local individuals to undertake post-graduate courses via the incentive programme
Clean energy technology transfer: 
Without adequate skilled workers R&D programmes have a low chance to succeed. Therefore: (i) Permit the importation of high quality foreign skilled workers (i.e. knowledge workers) to address the immediate shortage. [...].