Malaysia developing FiT mechanism to boost renewable energy use

May 4, 2010 8:08 pm 

KUALA LUMPUR, May 4 — The Malaysian government has been developing the Feed-in Tariff (FiT) Mechanism to spur the rapid development of renewable energy, a Malaysian official said here on Tuesday.

The mechanism allowed electricity produced from indigenous renewable energy resources to be sold to power utilities at a fixed premium price and for specific duration, Malaysian Energy, Green Technology and Water Minister Peter Chin Fah Kui said.

Speaking at the First Carbon Neutral Conference on Sustainable Building South East Asia here, Chin said that with the mechanism in place, the Malaysian government anticipated a significant increase in the viability of renewable energy projects.

These projects would in turn create a conducive environment for investment in renewable energy generation, added Chin.

According to the fact sheet issued by Chin's ministry here on Tuesday, the FiT mechanism can, on a cumulative basis, avoid 42 million and 145 million tons of carbon dioxide from the power generation sector by 2020 and 2030 respectively.

The Malaysian government aims at raising renewable energy contribution to the electricity generation mix to 6 percent, or 985 megawatt in 2015, and 11 percent or 2,080 megawatt in 2020.

Chin said that the Renewable Energy Act of Malaysia would be enacted to support renewable energy development in the country. (PNA/Xinhua) vcs/utb

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