PETALING JAYA: The energy market in Malaysia should be liberalised to encourage more investment in renewable energy and promote greater competition, says an industry player.
Malaysian Photovoltaic Industry Association president Davis Chong said opening the energy market could provide several benefits, including increased efficiency, lower costs and more consumer options.
It could also encourage the adoption of green energy by allowing more players to enter the market and compete, he said.
He spoke about letting third-party access as well, saying that this could be an effective way to encourage renewable energy development in Malaysia.
Allowing energy investors to sell green energy directly to industrial and commercial consumers could help reduce costs and increase the adoption of renewable energy sources, he said.
Chong said the cost of photovoltaic panels, government policies and public awareness were among the factors that could determine Malaysia’s transition to renewable energy.
“This transition also drives innovation in technical enablers such as energy storage systems and grid connectivity, which will further facilitate the adoption of renewable energy in Malaysia,” he said, adding that Malaysia had established a renewable energy installed capacity target of 31% by 2025 and 40% by 2035.
According to Tenaga Nasional Bhd (TNB), the government implemented the Net Energy Metering (NEM) scheme in November 2016 to encourage the use of renewable energy, which is primarily solar energy.
This quota is assigned into three categories: government agencies (NEM GoMEn), businesses (Nova), and individuals (NEM Rakyat).
TNB indicated that the quota take-up rate among business customers had increased dramatically, with the total number of business customers commissioned (excluding domestic, government, and agriculture sectors) rising from 81 or 9.5MWac in 2018 to 1,422 customers or 220.79MWac last year.
For the customer who successfully applies for Green Investment Tax allowance (Gita), the typical payback period for customers is three to four years.
“Businesses can apply for green technology incentives, such as Mida’s (Green Investment Tax Allowance and Green Income Tax Exemption) energy efficiency incentives,” it said.
