By BERNAMA / Graphic By TMR

SUSTAINABLE Energy Development Authority Malaysia (SEDA) made significant savings for renewable energy (RE) fund when it introduced e-bidding exercise last year.

Chairman Wong Kah Woh said the first biogas e-bidding exercise last year saw an average saving in the RE fund of RM12.9 million a year, while the second exercise saw a saving of RM12.5 million.

The effective tariff for the first biogas e-bidding average was 40.55 sen, while the second biogas e-bidding was 40.58 sen.

“If (we) compare this average tariff with the tariff prior to e-bidding which was 46.69 sen, we recorded a lower and cheaper average tariff in the first and second biogas e-bidding,” he added.

For the first biogas e-bidding, the basic bid tariff from 22.1 sen to 28.14 sen per kilowatt hour (kWh), while the second biogas e-bidding, the basic bid tariff for successful bidders from 23.5 sen to 26.89 sen per kWh, he said.

SEDA also conducted the first e-bidding exercise for small hydro from Sept 2 to Sept 23, following the saving it made in the earlier biogas bidding.

“Total number of bidders as of bid closing was 19. The list of successful bidders is targeted to be announced in mid to late December this year,” he said, adding that the total capacity applied for small hydro was 243.69MW, which is 1.5 times over-subscribed since SEDA only releasing 160MW of quota.

Commenting on the Budget 2020, Wong said the government through the budget has given a huge boost for the local RE industry.

“(It is) especially with the Green Investment Tax Allowance and Green Income Tax Exemption which have been extended to 2023. This is what the industry is asking for and this is important especially for SEDA’s efforts for the promotion of solar energy and solar panels,” he said.

Wong said tax incentives for companies implementing solar leasing activities with an income tax exemption of 70% for up to 10 years would encourage industry stakeholders and players to offer competitive services.

It would also help Malaysia move towards 20% RE national installed capacity mix by 2025.

Total RE at the end of last year was 6% of the national installed capacity mix excluding hydro above 100MW. — Bernama