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

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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,


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SOLAR PV: POLICY, MARKET & INDUSTRY IN MALAYSIA

7th April 2018 Presented by Gladys Mak (gladys@seda.gov.my) Director, Feed-in Tariff Division Sustainable Energy Development Authority (SEDA) Malaysia

50th Task 1 Meeting, Pullman Hotel, Kuching, MALAYSIA

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POLICIES DRIVING THE SOLAR PV MARKET IN MALAYSIA

50th Task 1 Meeting, Pullman Hotel, Kuching, MALAYSIA

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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 1st 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

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RE Connected to the Grid (as of 31/12/17) under the Feed-in Tariff

No. RE Resource Accepted (MW) Approved (MW) Connected to the Grid (MW) 1 Biogas 268.93 220.86 55.83 2 Biomass 592.65 396.19 87.90 3 Small Hydropower 640.44 538.48 30.30 4 Geothermal 37.00 37.00

  • 5 Solar Photovoltaic

523.10 440.19

354.03

  • Individual

108.05 98.43 75.89

  • Community

18.97 11.60 5.28

  • Non-Individual (≤ 500 kW)

128.03 101.63 67.83

  • Non-Individual (>500 kW)

268.05 228.53 205.03

Total 2,071.69 1,632.72 528.06

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NEM – Net Metering

Total Cum. Capacity in 2017: 5.25 MW

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Large Scale Solar (LSS)

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Large Scale Solar (LSS) Capacities Awarded

Large Scale Solar (LSS) Capacities Awarded

Bidding Cycle 1 18 Projects (MWAC) Bidding Cycle 2 40 Projects (MWAC) Direct Award 8 Projects (MWAC) Total = 66 Projects (MWAC) Johor 29 39,99 68,99 Kedah 69 125,89 110 304,89 Kelantan 39,99 39,99 Melaka 6,8 50 56,8 Negeri Sembilan 61 60 121 Pahang 50 59,916 109,916 Perak 79 69,87 148,87 Perlis 3,996 30 33,996 Pulau Pinang 20 1 21 Selangor 50 37,942 87,942 Terengganu 22 34,99 50 106,99 WP Kuala Lumpur WP Putrajaya 10 10 WP Labuan 5 11 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

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Completed LSS Projects in 2017

Source: Photo courtesy of Suruhanjaya Tenaga

Total Capacity Commissioned in 2017: 14.43 MW (12 MWAC)

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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

  • ver Malaysia

** 1 620 houses with 3 kW installed capacity under the Feed-in Tariff mechanism in 2017-18

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SOLA PV INDUSTRY IN MALAYSIA: UPDATES

50th Task 1 Meeting, Pullman Hotel, Kuching, MALAYSIA

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Solar PV Industry (as of 2017)

Manufacturers (Silicon feedstock /ingots) Process & technology Nameplate Capacity 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, 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 for Silicon Process & technology Nameplate Capacity OCIM Sdn Bhd Poly-Si 9,8 kilo ton

In 2017:

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

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Ingot/Wafer/Cell Technology Production capacity (MW/yr) 2017 2018 (estimat ed)

  • 1. Longi

Ingot 1 000 1 000 Wafer (p-type mono) 1 000 1 000 TOTAL 2 000 2 000

  • 1. Longi

Cell (mono-Si) 600

650

  • 2. Sunpower1

N-type mono- Si 826,4 764,4

  • 3. Hanwa Q-Cells

P-type mc-Si 1 600 1 800

  • 4. TS Solartech

Mono & mc-Si 240 240

  • 5. Jinko Solar

mc-Si 1 500 1 500

  • 6. JA Solar

mc-Si 1 000 1 000 TOTAL 5 766,4 5 954,4

[1] SunPower took over its joint venture (JV)

solar cell manufacturing

  • perations

in Malaysia from Taiwan-based partner AUO, a subsidiary of AU Optronics Corporation at a cost of US$170 million in 2016

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Module manufacturer Technology Module Production Capacity (MW/yr) 2017 2018 (estimated) 1. Hanwha Q-Cells P-type mc-Si 1 600 1 800 2. Longi

600

900 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 Thin film manufacturers 2017 2018 (estimated)

  • 1. First Solar

CdTe 2071 2344 Grand Total 6 753,7 7 411

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

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

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THE FEED-IN TARIFF Impact and Outcomes

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100 200 300 400 500 600 2010 2011 2012 2013 2014 2015 2016 2017

Cumulative Growth of Grid-Connected RE

Solar Photovoltaic Biomass Biogas Small Hydro Geothermal Capacity (MW) Year

BASELINE: SRE P & MBIPV

Impact 1: Increase in Grid Connected RE

58.7 98.44 64.45 331.67 147.93 420.94 528.26 243.36

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0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 35,000.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 31,410.00 27,550.00 23,190.00 22,410.00 20,440.00 19,120.00 11,000.00 9,000.00 7,500.00 8,500.007,790.008,038.00 8000 6830 6674 SOLAR INDIVIDUAL SOLAR NON-INDIVIDUAL

Cost (MYR)/kW Year

BASELINE: MBIPV PROJECT

Impact 2: Reduction in Costs of PV Systems

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2 2 24.93 73.3 160.03 224.74 284.35 50 100 150 200 250 300 2010 2011 2012 2013 2014 2015 2016

Solar Photovoltaic

19,120.00 11,000.00 9,000.00 7,500.00 8,500.00 7,790.00 8,038.00

Capacity (MW) Year Cost (MYR)/ kW

GROWTH OF INSTALLED CAPACITIES VS SYSTEM COST 2010 - 2016

Reduction in Costs of PV Systems with Increase in Installed Capacities

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Impact 3: Increase in Renewable Energy Jobs

Solar Photovoltaic Biomass Biogas Small Hydro Geothermal

2000 4000 6000 27,000

27,908 6,840 4,127 4,187 555 Total Employment

43,617

*Based on figures submitted to IRENA and includes the service sectors and manufacturing

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Evolution of Renewable Energy Employment 2011 - 2017

Solar Photovoltaic Biomass Biogas Small Hydro Geothermal

Total Employment*

25,424

Year

  • No. of Jobs

*Jobs Created Directly from the Generation of RE under the FiT Mechanism

  • 5,000

10,000 15,000 20,000 25,000 30,000 2011 2012 2013 2014 2015 2016 2017

  • 555

555 555 931 1,726 1,965 3,938 4,487 4,187 4,217 312 513 653 2,492 3,538 4,127 4,144 1,989 4,389 4,005 6,837 7,740 6,840 6,405 1,923 4,224 4,797 5,686 7,941 9,913 10,103

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Impact 4: Human Capital Development Since 2012

GCPV: Grid-connected Photovoltaic OGPV: Off-grid Photovoltaic CDP: Continuous Development Program

31 29 3 13 17

GCPV Design Course GCPV for Wiremen & Chargeman OCPV for Wiremen & Chargeman CDP for GCPV Design Solar PV Installation & Maintenance Course

Training Modules Organized by SEDA In Renewable Energy Publications Total Training Sessions: 93 Total Publications: 9

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Impact 5: Number of Workforce Certified Since 2011

157 253 256 469 502 531 535

41 126 210 275 284 5 93 168 168

21 27 27 27 32 39 42 100 200 300 400 500 600

MBIPV/2011 2012 2013 2014 2015 2016 2017

GCPV Designer Wireman/Chargeman PV Installer OGPV Designer

  • No. of Skilled

Workers Year

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Impact 6: Number of Registered Solar PV Service Providers in Malaysia

  • No. of Registered

Solar PV Service Providers (RPVSPs) Year

20 40 60 80 100 120 140 MBIPV/2011 *2012 *2013 2014 2015 2016 2017 30 65 100 136 119 107 126

*Estimated figure

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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

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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.

28.49 39.51 50.74 454.84 2521.57 4369.93 5482.58 6286.18 1000 2000 3000 4000 5000 6000 7000 8000 2014 2015 2016 2017 (estimate)

Production of PV Module

Year

Production Volume (MW)

Export market Local Market

*Statistics based on seven (7) PV module manufacturers surveyed in 2017

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3% 97% 28.49 39.51 50.74 454.84 50 100 150 200 250 300 350 400 450 500 2014 2015 2016 2017 (estimate)

However, since the local recognition initiative began in 2014, there is a steady stream of uptake in the local market. With LSS, more production for local market is expected for 2017.

Export market accounts for 97% share PV module sales order Local Market accounts for only 3% share of PV module sales order

Production of PV Module For Local Market Year Production Volume (MW) Between 2014 and 2017, it is estimated that 97 % of all PV modules assembled in Malaysia were exported for the overseas market.

Impact 9: Impact of the FiT Bonus on the Local Market from the PV Industry

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MALAYSIA’S LANDSCAPE TODAY A Gallery of Pictures Of RE Plants under the FiT Mechanism and LSS

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Solar PV Installations In Malaysia

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685kWp, Suria KLCC Sdn Bhd, Kuala Lumpur 13.0MWp, Cypark Suria Sdn Bhd, Pajam, Negeri Sembilan

646kWp, Robert Bosch (M) Sdn Bhd, Bayan Lepas 470kWp, Maglo Steel Service Centre, Shah Alam

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Transformation of Land to Solar Farm

5.3MWp (2013) Selasih Mentari Sdn Bhd Kuala Kawah, Negeri Sembilan

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Solar Farm – Ground Mounted

Fortune 11 Sdn Bhd, Solar Farm with Single Axis Tracker 5 MWp at Sepang, Selangor

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Solar Farm – Ground Mounted

Amcorp Power Sdn Bhd, 10.25MWp at Gemas, Negeri Sembilan

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Solar Farm – with BIPV Application

1MWp, TTL Energy Sdn Bhd, Papar, Sabah Solar Farm (BIPV) – Agriculture (Yam cultivation)

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Solar Farm – with BIPV Application

1MWp, Green Leadership, Keningau, Sabah Solar Farm (BIPV) – Aquaculture : Fish Cultivation

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Solar Farm– with BIPV Application

425kWp – Solar Management Sdn Bhd Solar Farm (BIPV) – Goat Farm

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Solar PV - Retrofit

646kWp, Bayan Lepas, Pulau Pinang

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Solar PV - Retrofit

180kWp, Lokkawi, Sabah

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Solar PV in Government Buildings

Ministry Of Energy, Green Technology & Water Malaysia Greentech Corporation Ministry Of Agriculture Energy Commision Headquarters

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Solar PV – Residential (3 – 12kWp)

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Solar PV – Residential (3 – 12kWp)

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Solar PV – Community Quota

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Solar PV – Community Quota

Community Rehabilitation Centre, Ranau (24kWp)

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Some Photos Showing On-going LSS Projects

Source: Photo courtesy of Suruhanjaya Tenaga

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Disclaimer

The information contained in this PowerPoint slides is for general purposes only. While the Sustainable Energy Development Authority Malaysia (“SEDA Malaysia”) endeavours to keep the information up to date and correct, the information displayed herein is subject to changes and may no longer be accurate after the preparation date. SEDA Malaysia is not responsible for any errors or omissions, or for the results obtained from the use of this information, nor do we make any representation or warranty of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this PowerPoint slides or the information contained in this PowerPoint slides for any

  • purpose. Any reliance you place on such information is therefore strictly at your
  • wn
  • risk. In no event will SEDA Malaysia, the Ministry of Energy, Green Technology and Water, the

Government of Malaysia, or any of their related corporations, agents, employees or consultants be liable to you or anyone else for any decision made or action taken in reliance

  • n the information in this PowerPoint slides or

for any damages whatsoever, including without limitation, special, indirect, or consequential damages arising out of or related to the use or reliance of the information contained in this PowerPoint slides , whether by action in contract, tort or otherwise howsoever.

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Phone : +603-8870 5800 Email: F1tteam@seda.gov.my Web: www.seda.gov.my

SEDA Malaysia,

Galeria PjH, Level 9 Jalan P4W, Persiaran Perdana, Presint 4, 62100 Putrajaya, Malaysia.

THANK YOU

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Scheme Category Approved Commercial Operation

  • No. of

Applications Capacity (MW)

  • No. of

Applications Capacity (MW) FiT Sub-total 11.803 438,76 8.234 341 Individual 10.688 98,38 7.516 69,52 Community 428 10,29 235 4,85 Non-Individual 687 330,09 483 266,62 NEM Sub-total 101 3,31 101 3,31 Residential 72 0,42 72 0,42 Commercial 22 1,12 22 1,12 Industrial 7 1,77 7 1,77 LSS Sub-total 19 450,90 Up to 5 MW 5 21,40 Up to 30 MW 7 120,5 Up to 50 MW 7 309 Total 11.923 892,97 8.335 344,31

Grid-Connected Solar PV Market Status (Aug 2017)

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Large Scale Solar Bid Price (Aug 2017)

Source: http://st.gov.my

Category Peninsular Malaysia Sabah Total Submissio ns

No of Submissions /MW Lowest Bid Price RM/kWh Highest Bid Price RM/kWh No of Submission s /MW Lowest Bid Price RM/ kWh Highest Bid Price RM/ kWh

P1 (1-5.99 MWac) 25 (72,3MW) 0,375 0,47 19 (78,8MW) 0,371 0,53 44 P2 (6-9.99 MWac) 18 (171,9MW) 0,37 0,46 12 (111MW) 0,39 0,49 30 P3 (10-30 MWac) 42 (1.198MW) 0,3398 0,5 na na na 42 Total 85 (1442,2MW) 31 (189,8MW) 116 (1632MW)

Available Quota: 360MWac (x 4) in Peninsular Malaysia and 100MWac (x 2) in Sabah (commercial operational by 2019-2020); Exchange rate: US$1 = RM4,21