Malaysian government approves 22 renewable energy projects from biogas, biomass


(Photo: TNB)

The Ministry of Energy Transition and Public Utilities in Malaysia, through the Sustainable Energy Development Authority (SEDA), has approved the development for the implementation of 22 renewable energy projects from biogas and biomass, with a total capacity of 36.534 MW.

In a statement, the ministry said that green electricity under the Feed-in Tariff (FiT) mechanism would be supplied to state-owned Tenaga Nasional Bhd (TNB) as early as 2027.

According to InfoLink Consulting, a feed-in Tariff (FiT) system is a long-term contract signed between the government and an individual or company that allows electricity suppliers to sell excess electricity and earn a certain amount of subsidy.

“In support of the government’s energy transition aspiration of 70% renewable energy capacity mix in electricity supply by 2050, the government announced the offer and opening of FiT applications through e-bidding for three renewables sources namely, biogas, biomass and mini hydropower from July 5 until 26, 2023,” the ministry said, adding that 34 applications were received.

It said that SEDA conducted the technical and financial evaluation, approving 22 applications that met the criteria.

The ministry said that this included 21 projects with a total quota of 29.534 MW for generating green electricity from biogas and one project with a quota of 7 MW for electricity generation from biomass.

It stressed that the approval for the implementation of the new projects under the FiT mechanism would diversify renewable energy generation sources other than solar and further enhance the reliability of the nation’s electricity supply.

It also mentioned, “At the same time, the development of these approved renewable energy projects is expected to create new investment value in the industry, amounting to up to RM372 million.”

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