Large Scale Solar Photovoltaic Programme

1. After a brief hiatus and following the recent awards for the Corporate Green Power Programme ("CGPP"), the Ministry announced that it will open up bidding process for another round of the large scale solar ("LSS") photovoltaic programme ("LSS 5") with a total quota of up to 2GW.
2. In a significant move to attract better quality investments, ensure a more transparent and fair selection process and competitive tariff offers, the Ministry announced an elevation of the application limit for a developer to 500MW (from the previous 50MW capacity in the last LSS programme).
3. There will also be an introduction of a special category, dedicated to floating solar power plants with a quota of 500MW although it is still unclear whether the floating solar quota will be separate or included in the overall 2GW quota.
4. The Energy Commission will release the Request for Proposal (RFP) documents starting 1st of April 2024, marking a pivotal step in facilitating project proposals and formalizing the bidding process.

Introduction to Low Carbon Energy Generation Programme

1. A further quota of 400MW has been allocated under the New Enhanced Dispatched Arrangement (NEDA) mechanism, which is the mechanism in which the CGPP operates. 
2. The Low Carbon Energy Generation Programme presents opportunities for the development of alternative low-carbon power generation sources, including wind, small hydro, biogas, biomass, hydrogen and similar low carbon energy initiatives.
3. The participation in this programme operates on a first-come, first served basis, with applications open from 5th of February 2024 on the official website of the Single Buyer at www.singlebuyer.com.my.
4. Through the diversification of renewable energy sources, the programme aims to enhance electricity supply reliability while concurrently stimulating new economic opportunities for developers engaged in non-solar renewable energy ventures.
5. It may also be possible to have a separate contractual arrangement with an offtaker (similar to how the CGPP was structured) for the sale and purchase of environmental attributes arising from the low carbon energy generation which can help alleviate bankability concerns from the market price risk that the NEDA mechanism is susceptible to.

Net Energy Metering (NEM) Scheme

1. The net energy metering (NEM) scheme has also been revived with an additional quota of 400MW being allocated under the NEM scheme comprising of 300MW for the commercial and industrial segment and 100MW for the household segment.
2. The quota offer period extends until December 2024 or until the allocated quota has been fully utilized. Applications for participation in the NEM scheme can be submitted starting from 5th February 2024, through the eNEM system available on the Sustainable Energy Development Authority (SEDA) website at www.seda.gov.my.

Observations

The introduction of these initiiatives by the Ministry presents for not only a much awaited and promising opportunity for investors and stakeholders in the renewable energy sector, but also serves as an indication to the public that the Government is serious to implement the nation's energy transition agenda.

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