SEDA to announce biogas e-bidding winners in September

Winners will be chosen from the lowest cost offered for a total 30MW installed capacity, says chairman


THE Sustainable Energy Development Authority Malaysia (SEDA) is expected to announce the successful bidders that would be involved in biogas initiatives to generate 30MW of electricity.

Chairman Wong Kah Woh (picture) said the winning bids, which were part of the online bidding exercise which started in the fourth quarter of last year, will be named in September.

Wong said SEDA is also studying the proposals that have been submitted by the 26 bidders and the decisions will be made next month.

“Winners will be chosen from the lowest cost offered for a total 30MW installed capacity,” Wong said after the announcement of quota reservation under the net energy metering (NEM) for property developers in Putrajaya last week.

The proposals by the 26 bidders involve biogas projects within the range of 0.396MW and 4MW, as listed on SEDA’s website.

Meanwhile, property developers are now allowed to reserve NEM quota for new projects to increase the solar photovoltaic (PV) take up rate in the country.

The provision will be implemented commencing Aug 5, 2019, applicable for residential, commercial and industrial types of developments.

Companies that are eligible must be incorporated in Malaysia, while the applications must be made before Dec 31, 2020.

Proof of development order must also be submitted as a supporting document.

As at July 31, 2019, SEDA has approved up to 58.6MW under the NEM programme, including 35.1MW approved in 2019/2020.

Wong said the NEM uptake has been boosted since the enhancement of the scheme last year.

Starting this year, any excess energy will be sold to Tenaga Nasional Bhd (TNB) on a one-on-one basis instead of a displaced cost, which would translate into better return on investments for solar PV system.

First introduced in November 2016, the NEM scheme allows consumers to export excess energy produced by installed solar PV system to TNB.

A total capacity of 500MW has been allocated until the end of 2020.

Wong said SEDA is optimistic that the 500MW will be taken up by 2020 from current 58.6MW, accelerated by the NEM quota reservation for property developers.

The initiative is one of the measures taken by the government to achieve a target of 20% of renewable energy (RE) in the installed capacity mix (excluding large hydro) by 2025.

As of last year, RE is 6% of the national installed capacity mix.