Malaysia Launches Plan To Allow Consumers To Buy Renewable Energy

The Ministry of Energy and Natural Resources of Malaysia has launched a plan to enable households and industrial consumers in the country to purchase electricity from renewable energy sources such as solar and hydropower.

Through this Green Electricity Price (GET) program, the government will provide 4,500 GWh of electricity each year and charge an additional 0.037 Malaysian Ringgit (US$0.087) for every kWh of renewable energy purchased by GET customers. The plan will sell renewable energy to buildings of 100 kWh (residential users) and 1,000 kWh (industrial users).

The new mechanism will take effect on January 1, and the Malaysian utility company Tenaga Nasional Berhad (TNB) will begin accepting consumer applications from December 1.

According to local media, nine Malaysian companies have submitted applications for the exclusive use of renewable energy power, including CIMB Bank Bhd (CIMB Bank Bhd), Dutch Lady Milk Industries Bhd, Nestlé (M) Bhd, Gamuda Bhd, HSBC Amanah Malaysia Bhd and Tenaga itself.

At present, the Malaysian government is promoting the net metering method to promote the development of distributed solar energy and supporting large-scale photovoltaic projects through a series of bidding activities. According to the International Renewable Energy Agency, the country’s installed solar power capacity will reach approximately 1,439 MW by the end of 2020.