M'SIA TO INTRODUCE FEED-IN TARIFF FOR RENEWABLE ENERGY IN 2011, SAYS MINISTER

KUCHING (Malaysia), July 15 (Bernama) -- Malaysia will implement the feed-in
tariff (FIT) for renewable energy to enable users to sell excess power to the
power grid as early as next year, said Energy, Green Technology and Water
Minister Peter Chin Fah Kui.

He said the Renewable Energy Act, which will introduce the FIT mechanism, is
expected to be tabled in the House of Representatives by year-end.

"The FIT is a mechanism that is tried and tested in many advanced countries,
notably Germany, as a way to encourage people to use renewable energy such as
solar, biomas or wind.

"With the FIT, it will be easier for everyone, whether individual consumers
or companies to generate renewable energy and sell their excess power back to
Tenaga Nasional Berhad or regional utility companies such as Sarawak Electricity
Supply Corporation and Sabah Electricity Board," he told reporters after the
launch of "Green Technology Roadshow 2010" by Deputy Chief Minister Dr
George Chan here Thursday.

Chin said he believed the incentives to sell excess power derived from
renewable energy sources to the grid would encourage more people to adopt
renewable energy sources.

"I'm quite sure, like in Germany and many other countries, when there is
FIT, the solar panel installation and usage will go up. A lot of usage could
bring the price of solar panels down," he said.

Chin said the cost to install solar panels to generate 1KW of power for
homes is RM25,000 (US$1=RM3.2) and the average usage of a detached house is
about 2kW.

"With FIT, it is a small step towards greening of this country. Based on the
United Nations Framework Convention for Climate Change, we are not doing that
good. Our carbon emission rate is among the highest in the world," he said.

Earlier, in his speech, Chin said the government planned various programmes
to promote the application and development of green technology including the
establishment of Green Technology Financing Scheme amounting to RM1.5 billion.

He said the scheme launched in January is to attract the private sector,
especially the SMEs, to participate in green technology entrepreneurship.

"As of last month, the scheme received overwhelming response from the
industry. The Malaysia Green Technology Corporation has certified 33 projects
out of 44 applications processed.

"More than 20 applications are being processed now," he said.

Chin was disappointed no project was located in Sarawak.

With the government's recognition of green technology, he said it was time
for
financial and business communities, especially in Sarawak, to utilise the
financing scheme to explore the green technology sector and help bring about a
more sustainable future to the country.

"Two companies from Sarawak have submitted applications. My wish is to
officiate a project here soon," he said, adding that the first roadshow was
intentionally started in Sarawak to increase awareness in the state.

At the launch, Dr Chan, who is also State Minister for Industrial
Development, urged local companies to tap into renewable energy research and
development) by utilising the Green Technology Financing Scheme.

"I hope R&D will reduce the cost of producing renewable energy power," he
added.

-- BERNAMA



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