In an effort to accelerate the transition towards renewable energy, the Malaysian government has announced several strategic measures to support the green energy industry. At the National Energy Awards (NEA) 2024, the Deputy Prime Minister and PETRA Minister delivered a crucial speech emphasizing government initiatives in strengthening sustainable energy.
One of the key announcements during this event was the enhancement of the SelCo (Solar for Self-Consumption) Program, which involves reducing standby charges and exempting requirements for installing energy storage systems. This move aims to encourage solar energy adoption among industries and commercial users.
The SelCo Program enables users to generate solar energy for self-consumption without selling excess energy back to the national grid. However, previous challenges such as high installation costs for energy storage systems and expensive standby charges hindered its adoption.
To address these challenges, the government has introduced three key improvements:
1. Postpone of Mandatory Energy Storage System Installation Until December 31, 2025
- Previously, SelCo users were required to install energy storage systems (ESS) such as batteries to ensure stable energy supply.
- The high cost of batteries has been a major barrier for solar energy investors.
- Now, the government has postponed this requirement until the end of 2025, allowing users more time to adapt their investments without additional financial burden.
2. Exemption from Standby Charges for Installations Below 1MWp
- Standby charges were imposed on solar energy users to cover grid maintenance costs.
- With this enhancement, users installing systems below 1MWp are now exempted from these charges.
- This encourages more users, especially small and medium enterprises (SMEs), to adopt solar systems without worrying about extra costs.
3. Reduction of Standby Charges for Installations Above 1MWp
- Previously, users with solar installations above 1MWp were charged RM14/kWp.
- Now, the government has reduced this charge to RM12/kWp.
- This initiative aims to increase the competitiveness of the renewable energy industry and reduce operational costs for large-scale companies.
NEA is an annual award that recognizes organizations excelling in energy efficiency and renewable energy. In the Deputy Prime Minister’s speech, several key facts about NEA were highlighted:
- Since its inception in 2018, NEA has received over 1,147 submissions.
- The program has contributed to an annual energy saving of 1,850 GWh and reduced carbon emissions by 240,000 metric tons per year.
- NEA serves as a platform for Malaysian companies to compete at the ASEAN level, with winners getting the opportunity to represent the country in the ASEAN Energy Awards (AEA) 2024.
For 2024, a new award category was introduced—“Green Stewardship Platinum & Gold”, recognizing companies that achieve 100% green energy usage.
Through the National Energy Transition Roadmap (NETR), the Malaysian government has set a target to achieve 70% renewable energy in electricity generation by 2050. Key initiatives include the Large Scale Solar (LSS) Program, which aims to increase solar energy capacity to 6,000MW by 2027; the Corporate Renewable Energy Supply Scheme (CRESS) to help companies secure direct green energy supply from renewable energy developers; the expansion of the Net Energy Metering (NEM) program, increasing its capacity from 1,000MW in 2023 to 2,400MW in 2024; the development of energy storage systems, with the government opening tenders to improve grid stability; and green energy trading between Malaysia and Singapore, allowing Malaysia to leverage renewable energy for a broader green energy market.
Conclusion
The announcements made at NEA 2024 and the enhancements to the SelCo Program demonstrate the Malaysian government’s commitment to accelerating energy transition and promoting renewable energy adoption.
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