PROPOSAL FOR NET ENERGY METERING

PROGRAM (2016-2030)

History of Malaysia Grid Connected Solar PV and Ways Forward

History: •  (2007-2011) Suria 1000 Solar PV Subsidy Program - Government Initiative (Total 1.5 MWp installed at an

estimated cost of 30 Million Ringgit) •  (2012-2017) Feed-in-Tariff - Public Fund/ Consumers Funded (1.6%, ~ 600mil/year , 20++ years)

Ways Forward: •  Roof Top PV Net Energy Metering(2016-2030)

•  Proposed Cumulative PV capacities Targets : •  2020: 1,356 MWp (1.03% based on total national electricity generation), •  2025 : 6,393 MWp ( 4.41%) •  2030: 17,075 MWp by 2030 (11.40%)

•  Utility Scale Solar PV Installation (2018 Onward) –Total Proposed Capacity 1000MWp •  Building Code (2021-2030) : Total Proposed Capacity 500MWp •  Renewable Portfolio Standard (RPS) (2021-2030) – Total Proposed Capacity 194MWp

Complimentary Technologies •  Grid Stabilization - Energy Storage ( 2020 onward for power utility and 2025 onward for private investment ) •  Smart Grid Management System •  Energy Efficiency •  Other Renewable Energy

•  BENEFITS of NET ENERGY METERING PROGRAM

CONSUMERS - Generate their own electricity to lower their monthly electricity bill and peak demand charges. - Hedge against portion of their electricity cost in future

NATION/COUNTRY - Reduce Nation Peak demand load -  Reduce use of subsidized Gas and /OR Expensive Import

LNG -  Reduction of CO2 emission

POWER UTILITY COMPANIES (TNB/SESB/SESCO) - Reduce Transmission and Distribution System Upgrading Cost - Reduce electricity losses in Transmission & Distribution Line

Basis For Proposed PV Installation Capacity Targets - (2016-2030)

1.  Based on 2014 SuruhanJaya Tenaga (ST) Forecast of Maximum Demand (MD) from (2016-2030) and Electricity Consumption & Generation in GigaWatthour (GWhr) (2016 -2030)

2.  Based on International Energy Agency ( IEA ) Forecast on Global PV generation energy mixed percentage by 2050 (16%)

3.  Domestic PV Industry Sustainability and Steady Growth 4.  Current Tariff Structures and Forecast Tariff in Future

1st Basis: SURUHANJAYA TENAGA 2014 FORECAST (2016-2030)

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2nd BASIS: Past Trend of Global Cumulative Solar PV Installation (2000-2014) (Data from EPIA )

2nd Basis (contd) : IEA Forecast Global PV Generation (2015-2050)

2nd Basis (Contd.) : US Solar PV rooftop Installation & Average Cost (2000-2013)

3rd Basis: Malaysia PV rooftop Installations & Average Cost (2011-2015)

2011 2012 2013 2014 2015 Installed Capacity (MWp) 1.50 31.59 107.05 52.84 66.04 Cumulative Capacity (MWp) 1.50 33.09 140.14 192.98 259.02

-

50.00

100.00

150.00

200.00

250.00

300.00

15,000

11000 10000

8500 7500

Average System Cost (RM/kWp)

4th Basis: Malaysia Current Electricity Tariff Structure