Progress of feed-in tariff in Malaysia: A year after

Malaysia enacted the Renewable Energy Act in April 2011. One of its important components is the feed-in tariff (FiT) scheme—launched in December 2011. The scheme is managed and administered by the Sustainable Energy Development Authority (SEDA) of Malaysia. This paper analyses the impact of the FiT mechanism in Malaysia a year after its implementation; particularly on the installation and economical aspects. First, the history of the scheme is presented before summarising the application process for the scheme. Next, a detailed evaluation on the implication of the scheme is discussed. Some of the key findings from the analysis include: (i) the uptake for renewable energy installations has been extremely high, particularly for solar photovoltaic installation; (ii) the foreign and domestic direct investment related to renewable sectors have increased significantly; (iii) more ‘green’ jobs have been created, particularly in the manufacturing and installation sectors, and (iv) there are plans to include wind and thermal energy in the FiT scheme. It can be concluded that the FiT scheme in Malaysia has produced significant impact during the first year of its implementation. With a proper monitoring by SEDA and more awareness among the people, renewable energy will most likely flourish in Malaysia.     

Generating renewable energy from oil palm biomass in Malaysia: The Feed-in Tariff policy framework

The renewable energy (RE) industry in Malaysia began in 2001 in the context of the growing concern about future depletion of conventional fuels and the global environmental concerns about greenhouse gas emissions. The Small Renewable Energy Programme (SREP) is a tool that was first designed to drive the development of the industry based on the abundance of oil palm biomass reserves and other identified renewable energy resources. Due to the slow uptake of this scheme, a new system, the Feed-in Tariff (FiT) was introduced in 2011 to stimulate the industry. By considering the deficiencies of the previous scheme, this paper examines the sustainability of the FiT policy framework in steering the future expansion of small-scale biomass renewable energy businesses in Malaysia. Resulting from the evaluation of the current policy settings and a market based appraisal, this work outlines strategies for enhancing the scheme and suggests future studies aimed at improving the flaws in the present system.     

Implementing a global fund for feed-in tariffs in developing countries: A case study of Tanzania

Feed-in tariffs are the world’s most prevalent renewable energy policy and have driven approximately 75% of the world’s installed PV capacity and 45% of the world’s wind energy capacity. Although approximately 28 developing countries have enacted national feed-in tariffs, market growth in developing countries has been slow because of a range of technical, regulatory, and financial barriers. This paper uses the Global Energy Transfer Feed-in Tariff (GET FiT) concept to explore potential international support for renewable energy in developing countries. This paper reviews the GET FiT concept and discusses the key mitigation strategies that it proposes to employ. The paper also provides a short case study of how GET FiT might be targeted to support a feed-in tariff policy in a specific developing country, Tanzania.     

An evaluation of the installation of solar photovoltaic in residential houses in Malaysia: Past,present, and future

This paper examines solar energy development in Malaysia, particularly in relation to the installation of solar Photovoltaic (PV) in residential houses. It analyzes the past activities related to solar energy in Malaysia, in terms of research and developments (R&Ds), the implementations used as well as the national policies for the past 20 years which have pushed the installation of PV in the country. The Feed-In Tariff (FiT) scheme is discussed, showing comparative cost-benefit analysis between the PV installation in houses in the United Kingdom (UK) and Malaysia, and with other investment schemes available in Malaysia. To investigate the awareness of renewable energy policies and incentives, a preliminary survey of the public opinion in Malaysia has been carried out, and an evaluation of public willingness to invest in the FiT scheme by installing the PV on their houses is presented. The cost-benefit analysis shows that the proposed FiT programme is capable of generating good return on investment as compared to the one in the UK, but the return is lower than other investment tools. The survey suggests that most Malaysians are unaware of the government’s incentives and policies towards renewable energies, and are not willing to invest in the FiT scheme.     

福建省可再生能源强制性配额政策框架与实施方案的初步研究

福建省具有丰富的可再生能源资源，具有一定的产业发展基础，但是福建的可再生能源发展还存在一些问题，需要建立新的发展政策框架。首先选择强制性配额政策作为政策框架的核心，以强制性手段明确未来的发展目标；其次，制定明确的政策实施方案，包括引入市场机制、价格分摊机制以及实施减免税等措施，降低生产成本，减少可再生能源的上网障碍和价格分摊的难度。     

Green waste to biogas: Renewable energy possibilities for Thailand's green markets

Today, the production of energy from waste is not a new process; however, its implementation and application continue to be a challenge in developing countries. Despite the abundance of valuable waste in the urban markets of these countries, practices aiming at renewable energy generation are missing. In Thailand, so-called green markets are replete with renewable energy potential, but the practical implementation of this potential is rare. Therefore, the main purpose of this study is to show that the conversion of green waste into renewable energy is not only environmentally beneficial but also financially rewarding. This is demonstrated by exploring the energy potential of the market and conducting a benefit–cost analysis under two scenarios. The results illustrate that for the selected market, converting organic waste into biogas is advantageous both environmentally as well as financially; further, the benefit–cost ratio is three times higher after conversion, compared to before. Additionally, there is a huge margin of conversion and production of biogas. The policy makers and planners of Talaad Thai (Thailand's largest green market) should invest greater effort in initiating plans, and set an example for other markets in Thailand, in order to make this planet clean and green.     

Solar photovoltaic in Malaysia: The way forward

This paper examines solar photovoltaic (PV) in Malaysia. First, it analyzes the current energy demand in Malaysia and discusses some of the national policies and the installations of solar PV in urban and rural areas in the country. Next, the general Feed-In Tariff (FiT) scheme is explained, indicating its potential as one of the investment options for Malaysians. Finally, the loan financing option for solar PV is presented, providing examples that have been implemented in other countries, as well as explaining the Green Technology Financing Scheme (GTFS) for companies and the proposed soft loan scheme for individual households in Malaysia. It also analyses the impact of the proposed interest rate to household consumers in Malaysia, in terms of total profit, net present value and internal rate of return. It is found that the FiT scheme could potentially help in increasing renewable energy penetration, particularly for solar PV. To provide upfront capital for solar PV installation, it is shown that the GTFS is a good financial source for companies while for individual home owners, a soft loan facility from banking institutions is a feasible source if the interest rate is 5% or less.     

Feed-in tariff for solar photovoltaic: The rise of Japan

Japan started implementing a national Feed-In Tariff (FiT) mechanism on the 1st July 2012, which included specific payment tariffs for solar photovoltaic (PV) installations. This marks a new era in the renewable energy landscape in Japan. This paper aims at analysing the solar PV prospect in Japan, particularly in both residential and non-residential sectors. The paper presents, first, an overview of energy trends in Japan prior to the Fukushima event. This is followed by a short review of solar PV progress in the country, highlighting the major policies and programmes that have been implemented as well as the installations that have been carried out over the past two decades. Next, the financial impact of the new FiT scheme on consumers is evaluated. The financial analysis investigates the total profit, the average annual return on investment and the payback period. For a comparison purposes, a similar financial analysis is also conducted with selected countries around the world – namely Germany, Italy and the United Kingdom. The results from this analysis indicate that the new Japanese FiT rate generates a good profit, a moderate annual return on investment and an acceptable payback period, suggesting an increasing trend of solar PV uptake over the next years.     

Comparative analysis of support mechanisms for renewable energy technologies using probability distributions

In this paper, a probabilistic model is developed to assess the effects of different support mechanisms on the financial return of small-scale hydroelectric, wind energy and solar PV systems. Besides, the results from this model are used to compare the economic effectiveness of each mechanism in increasing the profitability of these projects. We focus on three renewable energy support mechanisms: governmental grants, feed in tariffs (FiT) and renewable energy certificates (RECs). We also consider the effect of the carbon credits on the net present value of renewable projects and compare it with the other support mechanisms. The simulation results demonstrate that the feed in tariffs is the best mechanism to increase the profitability of solar PV systems and wind energy projects. Conversely, green certificate mechanism favors the most competitive technology as the hydropower. In addition, it is shown that the governmental grants and carbon credits are secondary support mechanisms compared to FiT and RECs. And, the carbon credits play a more important role than governmental grants as the energy output of the system increase. Finally, it can be concluded that the efficiency of the support mechanisms varies depending on stage of development of the renewable technologies that are implemented.     

Enabling optimal energy options under the Clean Development Mechanism

This paper addresses the cost effectiveness of renewable energy technologies in achieving low abatement costs and promoting sustainable developments under the Clean Development Mechanism (CDM). According to the results of our optimal energy option's analysis, at project scale, compared with a diesel-only energy option, photovoltaic (PV)–diesel (PVDB), wind–diesel (WDB) and PV—wind–diesel (PVWDB) hybrids are very cost-effective energy options. Moreover, energy options with high levels of renewable energy, including 100% renewables, have the lowest net present cost and they are already cost effective without CDM. On the other hand, while the removal of about 87% carbon dioxide emissions could be achieved at negative cost, initial investment could increase by a factor of 40, which is one of the primary barriers hindering wider renewable energy applications in developing countries, among others. Thus, in order to increase developing countries’ participation in the carbon market, CDM policy should shift from a purely market-oriented approach to investigating how to facilitate renewable energy projects through barrier removal. Thus, we recommend that further research should focus on how to efficiently remove renewable energy implementation barriers as a means to improve developing countries’ participation in meaningful emission reduction while at the same time meeting the needs of sustainable economic development.     

Interactions between renewable energy policy and renewable energy industrial policy: A critical analysis of China's policy approach to renewable energies

This paper analyzes China's policy approach to renewable energies and assesses how effectively China has met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy. First we briefly discuss the interactions between these two policies. Then we outline China's key renewable energy and renewable industrial policies and find that China's government has well recognized the need for this policy interaction. After that, we study the achievements and problems in China's wind and solar PV sector during 2005–2012 and argue that China's policy approach to renewable energies has placed priority first on developing a renewable energy manufacturing industry and only second on renewable energy itself, and it has not effectively met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy. Lastly, we make an in-depth analysis of the three ideas underlying this policy approach, that is, the green development idea, the low-carbon leadership idea and indigenous innovation idea. We conclude that Chinas' policy approach to renewable energies needs to enhance the interactions between renewable energy policy and renewable energy industrial policy. The paper contributes to a deeper understanding of China's policy strategy toward renewable energies.     

The politics of renewable energy policies: The case of feed-in tariffs in Ontario,Canada

Designing and implementing a renewable energy policy involves political decisions and actors. Yet most research on renewable energy policies comparatively evaluates instruments from an economic or technical perspective. This paper presents a case study of Ontario’s feed-in tariff policies between 1997 and 2012 to analyze how the political process affects renewable energy policy design and implementation. Ontario’s policy, although initially successful, has met with increasing resistance over time. The case reveals key political tensions that arise during implementation. First, high-level support for a policy does not necessarily translate into widespread public support, particularly for local deployment. Second, the government often struggles under asymmetric information during price setting, which may weaken the policy’s legitimacy with the public due to higher costs. Third, there is an unacknowledged tension that governments must navigate between policy stability, to spur investment, and adaptive policymaking, to improve policy design. Fourth, when multiple jurisdictions pursue the same policies simultaneously, international political conflict over jobs and innovation may occur. These implementation tensions result from political choices during policy design and present underappreciated challenges to transforming the electricity system. Governments need to critically recognize the political dimension of renewable energy policies to secure sustained political support.     

Corrective regulations on renewable energy certificates trading: Pursuing an equity-efficiency trade-off

As a common policy tool for reducing the cost of achieving the Renewable Portfolio Standard (RPS) targets, Renewable Energy Certificate (REC) trade can also exacerbate distributional inequity in provincial renewable electricity consumption. In this study, two types of corrective regulations –taxation and quotas on REC importing were proposed to pursue the equity-efficient trade-off. The energy, economic, and equity impacts of these corrective regulations were analyzed by applying a multi-region multi-market equilibrium model to China as a case study. The results verified that a free trade REC market can increase distributional inequity, while both import taxation and import quotas can reduce inequity. Compared to the electricity price premium for renewable energy and voluntary green certificate prices, the social cost of implementing these corrective regulations are within the public's willingness-to-pay. Moreover, the cost curve of increasing equity using the two corrective regulations on REC trade were obtained. Import taxation is found to be more cost-efficient, and therefore it should be the prior policy choice for China's central government comparing with import quotas in designing REC trade mechanisms.     

The BEPE – Break-Even Price of Energy: A financial figure of merit for renewable energy projects

Renewable energy is a fact, with more than 1580 GW installed worldwide growing up to 2350 GW expected for 2018 [1]. Driven by increasing conventional fuels prices and limited reserves, the energy mix for covering the world's demand is rapidly including renewable energy sources, providing carbon free energy as well as energy independence. Some studies claim the costs of renewable energy as one of the most important barriers to accelerate their deployment and reach a complete change in the energy model [2]. In this scenario, the cost of energy becomes one of the most important figures of merit for analyzing renewable energy projects. However, defining the cost of energy as figure of merit is not a trivial issue and most times is being done with different criteria, thus leading to different results difficult to compare. In this paper, a new figure of merit for renewable energy projects is presented alongside the methodology for its calculation. This figure of merit is not based on the cost of energy itself, but on the price at which this energy has to be sold in an energy market to result into a profitable project. The Break-Even Price of Energy, BEPE, is proposed as a financial indicator focused on renewable energy projects developers, and takes into account all the specific aspects of each legal and financial framework. This is of major importance when considering the present renewable energy scenario, with vast influence of local conditioning factors in the cost of energy depending on the project location and technology [3]. Thus, this indicator makes it possible to compare different specific renewable energy projects, and can really help developers to decide amongst different technologies, designs, locations, legal frameworks, etc.     

Potentials and challenges in implementing feed-in tariff policy in Indonesia and the Philippines

Located in Southeast Asia, Indonesia and the Philippines are characterized by a tropical climate and high amounts of rainfall that render their high potential for hydro-power and wind energy deployment. The volcanic geography of both countries also indicates their high geothermal potential compared with that of other countries, and their high solar radiation level makes them suitable areas to establish power plants. The present study is an archival-statistical overview of the potential generation of renewable energy in Indonesia and the Philippines and the implementation of the Feed-in-tariff (FiT) policy. This research focuses on the challenges encountered by politicians and policymakers and confirms the insufficient production of energy from wind, solar, and bio-gas sources despite the potential and the attempts to deploy FiT. Results show that the role of the government in providing support to investors is not clear in both countries. In addition, inflation rates have not been calculated. However, FiT has benefitted both countries by preventing degression during the primary years.     

The unrecognized contribution of renewable energy to Europe's energy savings target

We show that renewable energy contributes to Europe's 2020 primary energy savings target. This contribution, which is to a large extent still unknown and not recognized by policy makers, results from the way renewable energy is dealt with in Europe's energy statistics. We discuss the policy consequences and argue that the ‘energy savings’ occurring from the accounting of renewable energy should not distract attention from demand-side energy savings in sectors such as transport, industry and the built environment. The consequence of such a distraction could be that many of the benefits from demand-side energy savings, for example lower energy bills, increase of the renewable energy share in energy consumption without investing in new renewable capacity, and long-term climate targets to reduce greenhouse gas emissions by more than 80%, will be missed. Such distraction is not hypothetical since Europe's 2020 renewable energy target is binding whereas the 2020 primary energy savings target is only indicative.     

Algerian renewable energy assessment: The challenge of sustainability

Algeria plays a very important role in world energy markets, both as a significant hydrocarbon producer and as an exporter, as well as a key participant in the renewable energy market. Due to its geographical location, Algeria holds one of the highest solar potentials in the world. This paper presents a review of the present renewable energy situation and assesses present and future potential of renewable energy sources (RESs) in Algeria. This paper also discusses the trends and expectation in solar systems applications and the aspects of future implementation of renewable energies in the Middle East and North Africa (MENA) region status. The problem related to the use of RES and polices to enhance the use of these sources are also analysed in this paper. In addition the available capacity building, the technical know-how for each RES technology and localizing manufacturing of renewable energy equipments are defined. The co-importance of both policy and technology investments for the future Algerian markets of RES and competitiveness of the solar/wind approach is emphasized. Some examples of policy significantly impacting Algerian markets are reviewed, and the intention of the new Algerian RES initiative is discussed.     

Overcoming problems in Turkey's renewable energy policy: How can EU contribute?

Fossil fuels cover most of the energy demand in the world, and this creates significant social, economic and environmental problems. Many countries have taken measures to increase the share of renewable energy sources (RES), especially in electricity generation, and the review of literature shows that the success of a country in RES diffusion depends on a comprehensive renewable energy policy which combines political commitment with stable and long-term support measures that stimulate technological innovation. As the largest economy in the world, EU has also taken steps to increase RES usage in electricity generation in member states. Similar to other developing countries, Turkey is learning lessons from EU experiences regarding RES policies, and Turkey is also reforming its legal framework in line with acquis communautaire as a candidate country. As a result, EU has a multiway impact on Turkey's renewable energy policy. An overview of Turkey's renewable energy policy showed that EU has significantly contributed to Turkey in shaping its renewable energy policy, and Turkey should increase cooperation with EU in order to utilize its renewable energy potential.     

Evaluating public policy instruments in the Greek building sector

This paper applies a multi-criteria analysis (MCA) to evaluate public policy mechanisms that foster energy efficiency and renewable energy sources in the Greek building sector, based on stakeholders’ understanding and perceptions of the functionality of policy instruments. The objective is to shed light on the implementation of currently employed policy mechanisms that aim to achieve the 2020 energy savings targets and beyond, providing useful information to policy makers for future policy (re-) formulations. In this framework, policy instruments were evaluated against process-related criteria, such as implementation costs, distributional effects, and coherence of policy processes, so as to highlight successful policy practices during their implementation phase as well as to unveil cases of policy underperformance or unintended policy outcomes. To hedge uncertainties related to policy instrument selection, the method employs probabilistic evaluations of every alternative against each criterion. The MCA results showed that the country is still missing significant energy saving opportunities that could be reached through more streamlined implementation practices and political support. In times of fiscal crisis, the Greek government should also revitalize the implementation of alternative funding mechanisms and support policy alternatives such as green public procurement, voluntary agreements, and energy performance contracting.     

A new energy future for South Africa: The political ecology of South African renewable energy

Renewable energy remains a contested topic in South Africa. This paper argues that South Africa can build on the momentum surrounding its introduction of a feed-in tariff by enacting policies that may, if given adequate funding and political effort, allow the country to be a world leader in renewable energy. Given a variety of renewable energy policy options for moving forward, a majority of stakeholders consulted in this study strongly prefer the development of a renewable energy manufacturing cluster, in which government develops coordinated policy mechanisms that attract renewable energy manufacturers, over three other policies suggested by the authors. Interviews with key informants that play critical roles in this decision-making process suggest that there are reasons to remain cautiously optimistic about the country's renewable energy future while cognizant of the challenges that must still be overcome. Opportunities for a low carbon renewable energy transition in South Africa include the prevalence of broad stakeholder consultation, facilitated by civil society, and an innovative policy development context. Significant impediments also exist, however, and include pervasive social issues such as poverty and political inertia, along with the ongoing difficulties facing renewable energy technologies in reaching grid parity with inexpensive and abundant South African coal.