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Feed-in tariff, auctions and renewable energy schemes in Malaysia: lessons from other jurisdictions

Ghazali, Farahdilah and Ansari, Abdul Haseeb and Mustafa, Maizatun and Wan Zahari, Wan Mohd Zulhafiz (2020) Feed-in tariff, auctions and renewable energy schemes in Malaysia: lessons from other jurisdictions. IIUM Law Journal, 28 (1). pp. 113-137. ISSN 0128-2530 E-ISSN 2289-7852

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Abstract

Malaysia introduced Feed-in Tariff (FiT) in 2004 to incentivise renewable energy projects through the implementation of the National Renewable Energy Policy and Action Plan 2009 and the Renewable Energy Act 2011 (Act 725). Nevertheless, this FiT system failed to assist the country in increasing electricity generation from renewable sources. Later, auctions were introduced to boost the renewable shares, particularly solar photovoltaic power generation, after the quota for solar under the FiT were taken up. The tenders incorporated standard form of the contract along with a long-term Power Purchase Agreements (PPA) which induced for the lowest price for power generation and guaranteed access to the national grid. This measure is considered as an excellent instrument to expand the renewable energy sector. There has always been a question: whether abandoning FiT for auctions is a feasible choice in the interest of sustainable clean energy for sustainable development? The main objective of the present article is to investigate the implementation of auctions to support renewable energy development in Malaysia and to examine whether auctions could replace FiT. This study adopted a doctrinal and comparative approach. It concluded that competitive bidding is preferable to support mature technology and large-scale generations, while FiT should be sustained to support new technologies. The article has also identified several countries such as Germany and India, who have successfully implemented competitive bidding systems to support the aspiration to expand the renewable energy sector.

Item Type: Article (Journal)
Additional Information: 1526/84757
Uncontrolled Keywords: Renewable energy policy, FiT, auctions, support scheme, economics instrument
Subjects: K Law > K Law (General)
K Law > K1001 Commercial Law
K Law > K3581 Environmental Law
K Law > K600 Private Law
K Law > KPG Malaysia
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Ahmad Ibrahim Kulliyyah of Laws
Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Ahmad Ibrahim Kulliyyah of Laws > Department of Legal Practice
Depositing User: Dr. Wan Mohd Zulhafiz Wan Zahari
Date Deposited: 16 Nov 2020 12:16
Last Modified: 20 Jan 2021 11:30
URI: http://irep.iium.edu.my/id/eprint/84757

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