SOLAR PV: POLICY, MARKET & INDUSTRY IN MALAYSIA 7 th April 2018 - PowerPoint PPT Presentation

SOLAR PV: POLICY, MARKET & INDUSTRY IN MALAYSIA 7 th April 2018 Presented by Gladys Mak (gladys@seda.gov.my) Director, Feed-in Tariff Division Sustainable Energy Development Authority (SEDA) Malaysia 50 th Task 1 Meeting, Pullman Hotel, Kuching, MALAYSIA

50 th Task 1 Meeting, Pullman Hotel, Kuching, MALAYSIA POLICIES DRIVING THE SOLAR PV MARKET IN MALAYSIA

Policies in Support of the PV Market in Malaysia • Capital subsidy under UNDP-GEF Malaysia Building Integrated PV (MBIPV) Project (2006-2010) (quota 1 MW); • Feed-in Tariff (FiT) with quota offered on 1 st December 2011 and the last quota offered for Solar PV was in 2017, except for the MySuria* programme ; • Net Metering (NEM) launched in November 2016 with a proposed cumulative quota of 500 MW upto 2020; • Large Scale Solar (LSS) introduced in 2016 with a proposed quota of 1,200 MW upto 2020. * Note: MySuria is a special programme by the GoM for a specialised group of citizens (B40) to be implemented in 2018

RE Connected to the Grid (as of 31/12/17) under the Feed-in Tariff Connected to the No. RE Resource Accepted (MW) Approved (MW) Grid (MW) 268.93 220.86 55.83 1 Biogas 592.65 396.19 87.90 2 Biomass 3 Small Hydropower 640.44 538.48 30.30 4 Geothermal 37.00 37.00 - 354.03 5 Solar Photovoltaic 523.10 440.19 • Individual 108.05 98.43 75.89 • 18.97 11.60 5.28 Community • Non-Individual ( ≤ 500 kW) 128.03 101.63 67.83 • 268.05 228.53 205.03 Non-Individual (>500 kW) Total 2,071.69 1,632.72 528.06

NEM – Net Metering Total Cum. Capacity in 2017: 5.25 MW

Large Scale Solar (LSS)

Large Scale Solar (LSS) Capacities Awarded Large Scale Solar (LSS) Capacities Awarded Bidding Cycle 1 Bidding Cycle 2 Direct Award Total = 66 Projects 18 Projects (MW AC ) 40 Projects (MW AC ) 8 Projects (MW AC ) (MW AC ) Johor 29 39,99 0 68,99 Kedah 69 125,89 110 304,89 Kelantan 0 39,99 0 39,99 Melaka 0 6,8 50 56,8 Negeri Sembilan 61 60 0 121 Pahang 50 59,916 0 109,916 Perak 79 69,87 0 148,87 Perlis 3,996 30 0 33,996 Pulau Pinang 20 1 0 21 Selangor 50 37,942 0 87,942 Terengganu 22 34,99 50 106,99 WP Kuala Lumpur 0 0 0 0 WP Putrajaya 0 0 10 10 WP Labuan 5 11 0 16 Sabah 11,9 39,6 50 101,5 Peninsula 383,996 506,388 220 1 110,384 Sabah & Labuan 16.9 50.6 50 117,5 TOTAL 400.896 556.988 270 1 227,884 Source: Suruhanjaya Tenaga

Completed LSS Projects in 2017 Total Capacity Commissioned in 2017: 14.43 MW (12 MW AC ) Source: Photo courtesy of Suruhanjaya Tenaga

The MySuria Programme ** The Honorouble PM’s Announcement in the 2017 Budget Speech for a special Solar PV programme called “ MySuria ” for qualified and selected B40 Citizens** all over Malaysia ** 1 620 houses with 3 kW installed capacity under the Feed-in Tariff mechanism in 2017-18

50 th Task 1 Meeting, Pullman Hotel, Kuching, MALAYSIA SOLA PV INDUSTRY IN MALAYSIA: UPDATES

Solar PV Industry (as of 2017) • In 2017, a steady growth was reported for the solar PV industry in Malaysia; captured in MIDA’s “Malaysia Investment Performance Report 2017” • Over 90 % of the PV products were exported to Europe, US and Asia. In 2016: Manufacturers (Silicon Process & Nameplate Capacity feedstock /ingots) technology Elpion Si Metal Si 33,4 tonnes Tokuyama 1 Poly-Si 20 tonnes COMTEC 2 mc-Si ingots 124 MW [1] Sold to South Korea’s OCI Co Ltd in 2017 [2] In early 2017, LONGI agreed to buy over COMTEC Malaysia. In 2017: Process & Manufacturers for Silicon Nameplate Capacity technology OCIM Sdn Bhd Poly-Si 9,8 kilo ton

In 2018, the strategy for polysilicon by OCI: Source: www.pv-tech.org

Production capacity (MW/yr) Ingot/Wafer/Cell Technology 2018 (estimat 2017 ed) 1. Longi Ingot 1 000 1 000 Wafer (p-type 1 000 1 000 mono) TOTAL 2 000 2 000 1. Longi 650 Cell (mono-Si) 600 N-type mono- 2. Sunpower 1 826,4 764,4 Si 3. Hanwa Q-Cells P-type mc-Si 1 600 1 800 4. TS Solartech Mono & mc-Si 240 240 [1] SunPower took over its joint venture (JV) 5. Jinko Solar mc-Si 1 500 1 500 solar cell manufacturing operations in Malaysia from Taiwan-based partner AUO, a 6. JA Solar mc-Si 1 000 1 000 subsidiary of AU Optronics Corporation at a cost of US$170 million in 2016 TOTAL 5 766,4 5 954,4

Module Production Capacity (MW/yr) Module manufacturer Technology 2018 2017 (estimated) 1. Hanwha Q-Cells P-type mc-Si 1 600 1 800 2. Longi 900 600 3. Jinko Solar mc-Si 1 300 1300 4. Flextronics c-Si 513 473 5. Panasonic HiT mono-Si 469 370 6. MSR Mono & mc-Si 100 120 7. PV HiTech mc-Si - 3 8. Promelight Mono & mc-Si 100 100 9. Solartif mc-Si 0,7 1 Sub-Total 4 682,7 5 067 2018 Thin film manufacturers 2017 (estimated) 1. First Solar CdTe 2071 2344 Grand Total 6 753,7 7 411

Report downloadable here: http://www.mida.gov.my/home/malaysia:-investment-performance/posts/

Key Findings on the Contribution of the Solar Industry to the Malaysian Economy

THE FEED-IN TARIFF Impact and Outcomes

Impact 1: Increase in Grid Connected RE Cumulative Growth of Grid-Connected RE Capacity (MW) Solar Photovoltaic 600 528.26 Biomass 500 420.94 Biogas 400 331.67 BASELINE: SRE 243.36 300 Small Hydro P & MBIPV 200 147.93 Geothermal 98.44 58.7 64.45 100 0 2010 Year 2011 2012 2013 2014 2015 2016 2017

Impact 2: Reduction in Costs of PV Systems Cost (MYR)/kW 35,000.00 31,410.00 30,000.00 27,550.00 BASELINE: MBIPV PROJECT 25,000.00 23,190.00 22,410.00 20,440.00 19,120.00 20,000.00 SOLAR INDIVIDUAL SOLAR NON-INDIVIDUAL 15,000.00 11,000.00 9,000.00 10,000.00 8,500.007,790.00 8,038.00 8000 7,500.00 6830 6674 5,000.00 0 0 0 0 0 0 0 0 0 0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year

Reduction in Costs of PV Systems with Increase in Installed Capacities GROWTH OF INSTALLED CAPACITIES VS SYSTEM COST 2010 - 2016 Capacity (MW) Cost (MYR)/ kW 300 284.35 250 224.74 19,120.00 200 160.03 Solar 150 Photovoltaic 11,000.00 9,000.00 100 8,500.00 8,038.00 7,790.00 7,500.00 73.3 50 24.93 2 2 0 2010 2011 2012 2013 2014 2015 2016 Year

Impact 3: Increase in Renewable Energy Jobs Solar 27,908 Photovoltaic Biomass 6,840 4,127 Biogas Total Employment 43,617 4,187 Small Hydro 555 Geothermal 6000 0 2000 4000 27,000 *Based on figures submitted to IRENA and includes the service sectors and manufacturing

Evolution of Renewable Energy Employment 2011 - 2017 Solar No. of Jobs Photovoltaic 30,000 Biomass 25,000 Biogas 9,913 7,941 10,103 20,000 5,686 Small Hydro 15,000 7,740 6,840 6,405 6,837 10,000 4,797 4,224 Geothermal 3,538 4,127 4,144 2,492 4,005 4,389 5,000 1,923 4,487 4,187 4,217 1,989 653 513 3,938 312 1,965 1,726 931 555 555 555 - - - - - 2011 2012 2013 2014 2015 2016 2017 Total Employment* 25,424 Year *Jobs Created Directly from the Generation of RE under the FiT Mechanism

Impact 4: Human Capital Development Since 2012 Training Modules Organized by SEDA Publications In Renewable Energy Solar PV Installation & GCPV Design Maintenance Course Course 17 31 CDP for 13 GCPV Design 3 OCPV for Wiremen 29 & Chargeman GCPV for Wiremen Total Training Sessions: 93 & Chargeman Total Publications : 9 GCPV: Grid-connected Photovoltaic OGPV: Off-grid Photovoltaic CDP: Continuous Development Program

Impact 5: Number of Workforce Certified Since 2011 No. of Skilled GCPV Designer Wireman/Chargeman PV Installer OGPV Designer Workers 600 535 531 502 500 469 400 284 300 275 256 253 210 200 168 168 157 126 93 100 42 39 41 32 27 27 27 21 5 0 0 0 0 0 0 MBIPV/2011 2012 2013 2014 2015 2016 2017 Year

Impact 6: Number of Registered Solar PV Service Providers in Malaysia 140 136 120 126 119 100 107 100 No. of Registered 80 Solar PV 65 Service Providers 60 (RPVSPs) 40 30 20 0 MBIPV/2011 *2012 *2013 2014 2015 2016 Year 2017 * Estimated figure

Impact 7: Domestic/International Recognition of our RPVSPs Malaysian Service Provider Ditrolic Solar being awarded a 50MW project in Bangladesh Recipient of a Sin Chew Award Recipient of a Frost & Sullivan Excellence Award 2013

Impact 8: Impact of the FiT Bonus for Local Assembly on the PV Industry RE developers enjoy a 5 sen/kWh FiT bonus rate on top of their basic FiT rate for using locally produced/assembled modules. This has led to an increase in production capacity among PV manufacturers. Production of PV Module 8000 7000 6286.18 6000 5482.58 5000 Production 4369.93 4000 Volume (MW) 3000 2521.57 2000 1000 454.84 28.49 39.51 50.74 0 2014 2015 2016 2017 (estimate) Year Export market Local Market *Statistics based on seven (7) PV module manufacturers surveyed in 2017