Latest news with #SelCo
Focus Malaysia
a day ago
- Business
- Focus Malaysia
Solar share in Malaysia's energy mix set to surge
THE Deputy Prime Minister announced that the evaluation process for LSS PETRA 5+ has been completed and that winning bidders will be notified soon. 'We have previously estimated that solar will be increasingly dominant accounting for 25%/39%/52%/58% share of the capacity mix in 2035/2040/2045/2050, growing at compounded annual growth rate of 14% between 2025-2050,' said MBSB Research. This underpins a multi-year growth story for solar EPCC companies and also asset-owners, through power generation over the long-term. PETRA is expected to announce a new version of the Net Energy Metering (NEM) this month, dubbed the NEM 4.0 or an entirely new naming convention. It was hinted that this could be a hybrid mechanism of NEM and self-consumption (SelCo) or an entirely new programme. PETRA is in the midst of finalising the new programme, which will be aligned with the new tariff structure and designed in a way that gradually shifts away from subsidy dependency. Recall that NEM 3.0 ended on 30th June following the deadline for the additional 100MW under the NEM Rakyat quota. Following the rollout of the new tariff structure under Regulatory Period 4 (RP4) starting Jul-25, PETRA had also announced the continuation for rooftop solar users to earn electricity bill credits for excess solar power generated and exported to the grid for the next 10 years. While domestic and low voltage solar rooftop users continue to be able to offset all three component charges (energy, network and capacity), medium and high voltage users can offset only up to 25% of the network and capacity charges while energy charges can be offset in full. We view this to be fair, as it ensures heavy users pay their fair share of the fixed network upkeep. In the past, non-solar consumers have indirectly subsidised the network and capacity charges for solar users, estimated to be about RM250m per year. The decision to include nuclear as part of the energy mix will only be made after 2030, if it receives public acceptance. Under Strategy A1.5 of the 13th Malaysian Plan, Malaysia will launch a nuclear-power program slated to come online by 2031, integrating nuclear alongside renewables to decarbonise its grid. MyPOWER Corporation will serve as the Nuclear Energy Programme Implementing Organization, responsible for governing the national nuclear program in accordance with International Atomic Energy Agency (IAEA) standards. Sarawak's strategic positioning as a hydro-centric renewable hub will be reinforced through a dedicated grid link to Peninsular Malaysia, further unifying the nation's clean-energy infrastructure. Considering that 70% of Sarawak's energy comes from hydro, there is expected to be an excess of power from the state. The YAB Deputy Prime Minister said it has been agreed in principle for a maximum of 2GW coming channelled from Sarawak to the Peninsular. In a report last year, the ASEAN Centre for Energy said the interconnection plan is to connect Peninsular Malaysia and Sarawak through grid-to-grid high-voltage DC (HVDC) subsea cables, with a planned 676km line capacity of 2 x 800 MW, or a total of 1.6GW. The implementing agencies are expected to be Tenaga Nasional and Sarawak Energy. Undersea cables can also be expected from Vietnam to Kota Bharu, for the supply of RE from Vietnam to Malaysia. In May-25, a tripartite deal between Malaysia, Singapore and Vietnam was inked to explore the export of RE from Vietnam, particularly offshore green power. About 30% will be imported by Malaysia while the remaining 70% will be sold to Singapore. PETRA is working with state governments to develop specific water tariffs for data centres and heavy industrial users, in a move to ensure that domestic users can continue paying reasonable and affordable rates and to prevent them from cross-subsidising large-scale users. Data centres and industrial users are also encouraged to switch to recycled water and for states to set up zonings in order to have district cooling systems particularly where there will be heavy water usage. This is to ensure more effective and efficient management of water usage and to prevent any 'competition' for clean water for human consumption. We maintain our positive stance on the Utilities sector and the Renewable Energy subsector, underpinned by the structural policy tailwinds for a deep decarbonisation trajectory in line with the targets under NETR. We view that solar remains a multi-year growth engine, on top of the incoming BESS requirements, which will benefit EPCC players such as Solarvest, Samaiden, Pekat, Sunview and Northern Solar. Tenaga will be the key beneficiary in the asset ownership space from both RE capacity expansion and grid upgrade investments. —Aug 11, 2025 Main image: The Star
BusinessToday
6 days ago
- Business
- BusinessToday
Govt Proposing To Replace Net Energy Metering Programme
The government is reviewing the Net Energy Metering (NEM) programme and will announce a new scheme this month, in line with the revised electricity tariff structure to ensure a more equitable distribution of energy subsidies. Energy Transition and Water Transformation Ministry deputy secretary-general (energy) Mareena Mahpudz said the government is deciding on a replacement for the NEM 3.0 scheme, which might be a hybrid between NEM and self-consumption (SelCo), or even a new programme altogether. 'As you know, the tariff structure is entirely different starting from July onwards,' she said. Fadillah said the new programme must be aligned with the new tariff system, and will be designed in a way that gradually shifts away from subsidy dependency. 'We already have SelCo, where you install solar panels for your own consumption. If you add a battery, you can store more solar energy — extending usage from around three or four hours to as much as seven or eight hours. If that still isn't sufficient, then you draw the rest from the grid,' he said. He said another model being considered is the Community Renewable Energy Aggregation Mechanism programme, or aggregated rooftop solar, which benefits communities within a 5km radius. He added that the programme would empower local groups to manage their own energy systems, adding that through this approach, subsidies can be accessed collectively, enabling communities to build, govern and utilise solar power more effectively. 'This new approach allows for more inclusive access to solar energy, moving beyond individual ownership and enabling group-based or community energy solutions,' Fadillah said.
The Star
01-07-2025
- Business
- The Star
Govt maintains credit scheme for over 96,000 rooftop solar users
PUTRAJAYA: The government will continue to allow over 96,000 existing rooftop solar users under the Malaysian Building Integrated Photovoltaic (MBIPV) and Net Energy Metering (NEM) schemes to earn electricity bill credits for the excess solar power they generate and export to the grid. In a statement on Tuesday (July 1), the Energy Transition and Water Transformation Ministry (Petra) said the continuation of the solar credit scheme aligns with the implementation of a new electricity tariff structure, effective today, that ensures fairness and transparency. Under the updated framework, these credits will differ slightly based on which programme users are enrolled in, and for how long their systems have been active. At present, there are over 82,000 solar photovoltaic (PV) systems with a combined capacity of 1.7 gigawatts (GW) in operation, with another 14,000 systems (595 megawatts) under development. The ministry noted that MBIPV users will receive credits for energy, network and capacity use for five more years, until Dec 31, 2030, while NEM 1.0 users will continue earning credits based on the displaced cost (the cost the utility avoids when solar energy replaces electricity from the grid) for ten years, until Dec 31, 2035. Meanwhile, NEM 2.0 and 3.0 users will receive similar credits for ten years from the date their solar system was installed. It added that incentive rates and calculations will be adjusted as needed to ensure the system remains fair for all electricity users and to provide equitable incentives to eligible MBIPV and NEM users, including energy efficiency rebates or other related benefits. To standardise how credits are applied across all rooftop solar programmes, the 'settlement period' or the time frame for calculating and applying these credits, will now be fixed at 12 months, replacing the previously varied timeframes. For users whose original credit period has ended, Petra said they have the option to switch to other ongoing solar initiatives, such as the Solar for Self-Consumption (SelCo) programme or the Community Renewable Energy Aggregation Mechanism (CREAM). They may also install energy storage systems or join any new solar schemes the government introduces, it said. With the conclusion of the NEM programme on June 30, rooftop solar installations will now continue under the improved SelCo programme, which allows for larger system sizes and more flexible installation setups, following earlier announcements by the government.- Bernama
