Incentives for Renewable Energy, Energy Efficiency and Green Buildings in Malaysia
Ministry of Energy, Green Technology and Water
as on June 2010
targeting manufacturer who
wants to generate energy from
its manufacturing's byproduct,
prospective RE plant developer
& businesses who want to save
on fuel by using RE
application for RE and EE
incentives shall be made before
31 December 2010 and the
projects shall be commenced
within 1 year after approval
while companies are allowed to
apply for expatriate posts, they
were encouraged to hire and
train Malaysian in the same field
PS, ITA (100%), import duty and
sales tax exemption for Sdn.
Bhd. & Bhd. companies that go
for RE and EE
incentives for obtaining GBI
certificate valid between 24
October 2009 until 31 December
2014
KeTTHA listed wind as one of the
RE sources, but MIDA does not.
Wind energy producers might not
eligible for the said incentives
energy services companies that
companies that generate energy
undertake energy auditing
to sell & for own use gets the
service activities will get most
most incentives for RE
incentives for EE
businesses who obtaining GBI
businesses & individual who
for their building are eligible for
bought GBI certified property
100% tax exemption equivalent
will get stamp duty exemption
to the amount of QE
availability of same incentives (RE
this document does not specify
& EE) next year (2011) or the
foreign equity shareholding limit
following year will only be known
or eligibility of foreign companies
after Budget 2011 on October
to apply for the incentives
2010
Feed-in-Tariff in Malaysia
Malaysia Building Integrated Photovoltaic Project
as on July 2010

TNB will buy electricity

RE producers sell maximum
30MW electricity to TNB at
premium tariff fixed for fixed
number of years
generated from the following RE
introduced as early as second
sources: biogas, biomass, mini
quater of 2011
hydro & solar PV. No wind &
solar thermal

TNB will study, including but not

RE producers are still eligible for
other government incentives
limited to the location,
foreign equity shareholding of
technology employed, financing,
RE producers is capped at a
& nearest TNB interconnection
maximum rate of 49%
point to RE producers. TNB also
imposed certain quota

annual degression rate for solar

the are capacity limit each year
for each RE "to keep the cost
within projected funding"
PV are the highest (8%), which
also means that solar energy
producers should participate in
this initiative during the first year
of implementation to obtain more
revenue.

More information available at MBIPV website

Small Renewable Energy Power Programme (SREP)
Energy Commission
as on September 2010

must negotiate with

TNB on selling price etc responsible for grid
connection and necessary
metering installation

The given preferential

producer treatment
no stand-by charges
applicable for the
following RE
will be given licence back-energy at must be approved by
resources:
for 21 years prevailing tariff DoE
biomass, biogas,
municipal waste,
Must be 30% solar, mini-hydro,
Bumiputera-owned and The
wind
max 30% foreign equity plant
shareholding must located max 10km
from nearest grid-
interconnected point must be ready 12
except for mini-hydro within month after
approval
can generate more than
10MW but allowed to
sell 10MW only
Green Technology Financing Scheme
Ministry of Energy, Green Technology and Water
Available online at GTFS website

RM1.5 billion
soft loan of applies only
to new
latest balance RM1.370 billion (Oct 5 2010) projects

producer of green tech: max RM50 targets energy, companies are

government will
million per company, tenure up to 15 bear 2% of total
construction, waste allowed to make
management and more than one
years. Must be at least 51% Malaysian- interest/profit rate transportation application
owned

user of green tech: max RM10 government will

guaratee 60% of the
million per company, tenure up to financing amount,
guarantee/guarantor
are compulsory
10 years. Must be at least 70% another 40% by
Malaysian-owned participating banks

application open
no R&D, projects
starting 1 January 2010
ready for application is free and
until 31 December
commercialization can be made online
2012/complete
only
utilization of loan
Review on Malaysia’s national energy developments: Key policies, agencies, programmes
and international involvements
published in Renewable and Sustainable Energy Reviews in 2010

Transport used the most final Malaysia have 9 policies

commercial energy in 2010
with about 41.1%, followed by
industrial (38.8%) , residential
& commercial (12.8%). Annual
growth is 6.3%
All key players in energy
relevant to energy prior to
development are
National Green Technology
government-linked
Policy announced last year
companies and government
(2009). There are 5 RE and EE
agencies.
initiatives since 1999

MIEEIP successfully cut down
up to 35% energy
consumption, 26.7% less fuel
usage & substantially lower
CO2 emmision for selected
industries
49% of projects under SREPP
are biomass, followed by
mini-hydro (43%). Only 10-15%
of the participants signed
Power Purchase Agreement
with TNB/others
Bungalows with BIPV at Shah
Alam were sold around
RM1.58m, Putrajaya (RM2.9-
4m). 5kWp system costs
RM170k generates RM150
electricity every month

Malaysia's potential in carbon

trading is huge (up to RM3b Developers whom employ
annually). Malaysia currently MBIPV initiative could expect
has 156 CDM projects in the between 30-35% subsidy
pipeline
Energy policy and alternative energy in Malaysia: Issues and challenges for sustainable
growth
published in Renewable and Sustainable Energy Reviews in 2010

current contribution of RE in
RE with most grid-connected solar could generate up to
Malaysia's total energy mix is
capacity is biomass (67% of total 6500MW while wind energy
below 2%, far below 5% targeted
RE) followed by mini-hydro seems not feasible in Malaysia
on early 2011

5kWp BIPV system costs

RM135k, generating 6000kWp
annually. Cost of PV gradually
decreased every year (16% since
introduced). However only
0.4MW are grid-connected.
EE under LEO and GBI initiatives
MOSTI putting hydrogen fuel
targeting max 100kWh/m² and
cell research as the second
50% energy saving compared to
priority after solar with around
building without energy saving
RM41m grants allocated
design

There are growing trends among

Highly-subsidized non-renewable
energy (e.g. oil) undermining the
growth prospect of RE and
financing RE is still an issue
property developers who actively
promoting green solutions and
supporting industries (e.g.
energy efficient roofing solution
companies) are also catching-up