KUALA LUMPUR: While the manufacturing industry anticipated a better Imbalance Cost Pass Through (ICPT) reduction, the relaxation of conditions for Self-Consumption for Solar Photovoltaic Installation (SelCo) programmes is a move in the right direction, says the Federation of Malaysian Manufacturers (FMM).
Its president Tan Sri Soh Thian Lai (pic) in a statement on Saturday (June 24) welcomed the announcement by Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad on the reduction of the ICPT surcharge.
"While the reduction in ICPT surcharge is lesser than anticipated, we (FMM) hope that the next review would see a more substantial reduction in view of the declining trend in energy prices and the six months lag.
"We are looking forward to the continuation of ICPT exemption for Green Electricity Tariff subscribers," the statement read.
On renewable energy initiatives, in particular rooftop solar, Soh said they welcomed the government’s move to relax the conditions for Net Energy Metering (NEM) and SelCo programmes.
He welcomed the increase of capacity from 75% to 85% for both programmes as well as allowing participation of High Voltage (HV) consumers in SelCo programmes.
"We are pleased with these new developments as we have been advocating for the removal of the restriction previously imposed on HV consumers.
"We look forward to seeing the terms and conditions of HV consumers participation as well as the improvements to be announced by TNB to encourage solar photovoltaic installations," he said.
Soh said they hope these new developments would facilitate businesses in complying with the European Union Carbon Border Adjustment Mechanism as well as the multinationals and local companies in Malaysia that are committed to the RE100 initiative (100% renewable energy consumption).
It was reported on Friday (June 23) that Nik Nazmi said the conditions for NEM and SelCo programmes have been loosened to encourage the use of photovoltaic solar systems.
He said that one of the conditions that had been relaxed was the increase in the capacity limit for each home to apply for NEM.
NEM and Selco are options provided by TNB for its customers to reduce or offset energy costs by utilising their own solar photo-voltaic systems.
