Malaysia has approved 181.25MW renewable energy (RE) projects valued MYR 1.87 billion ($440 million) under the Feed-in Tariff (FiT) mechanism.
The Ministry of Energy Transition and Water Transformation (PETRA) said in a statement on last Friday that on line with the country’s desire to increase the RE mix in the country’s electricity supply, the Ministry of Energy Transition and Water Transformation (MEWT) through the Sustainable Energy Development Authority (SEDA) of Malaysia has approved the development for the implementation of 48RE projects from biogas, biomass and small hydropower sources with a capacity of 181.25MW, under the FiT mechanism.
These approved RE projects are expected to generate an investment value of MYR 1.87 billion ($440 million) in the RE sector and will begin supplying green electricity to Tenaga Nasional Berhad (TNB) as early as 2028.
This approval includes 20 projects with a total quota of 30.93MW for green electricity generation from biogas sources, 8 projects with a total quota of 53.50MW for green electricity generation from biomass sources and 20 projects with a total quota of 96.82MW for green electricity generation from small hydropower sources.
The government has announced the offering and opening of applications for 190MW of FiT approval for three RE sources, namely biogas, biomass and small hydropower, from January 15 2025 to February 19, 2025.
This offering aims to invite applications from qualified RE developers to participate in the bidding process via e-bidding.
A total of 59 applications were received and 48 applications that met the specified technical and financial criteria were approved.
The implementation of new RE projects under the FiT mechanism is part of PETRA’s commitment to increasing the renewable energy mix in the country’s electricity supply to 70 percent by 2050.
This effort to increase the capacity of biogas, biomass and small hydropower sources will also further strengthen the reliability of the country’s electricity supply by diversifying RE generation sources in addition to providing a firm or consistent electricity supply.
PETRA said it is confident that the RE initiatives under the FiT mechanism that are being implemented will be a catalyst for the country’s more progressive and positive growth of the renewable energy industry, in line with the main principles of MADANI Malaysia which emphasizes the values of sustainability, innovation and shared prosperity.
Analysts foresee strong momentum ahead for Malaysia’s renewable energy sector