The Malaysian government has announced approval of 42 biogas, biomass and small hydropower projects totaling 331MW under its Feed-in Tariff (FiT) bidding program. The projects are expected to attract investments of about RM4.3 billion (approximately $1 billion), according to reports.
Malaysia’s Economy Minister Akmal Nasrullah Mohd Nasir announced at the 7th International Sustainable Energy Summit that 42 renewable energy projects had been approved through a recent FiT bidding round. The Sustainable Energy Development Authority (Seda) is reported to have received a total of 48 applications during the bidding period from February 10 to March 17, of which 42 were ultimately approved. The approved projects consist of biogas, biomass and small hydropower generation facilities, and under the FiT program are granted the right to sell electricity to the grid at a fixed premium price for a set period, it is reported.
The Malaysian government is reported to be targeting a 70% share of renewable energy in its generation capacity by 2050, with this FiT bidding round serving as one of the policy tools supporting that goal. Part of electricity bills is reportedly used to fund the financial support structure for such renewable energy projects.
Whether the 42 approved projects can be connected to the grid in stages as planned between 2029 and 2030, and how much actual demand is generated for domestically manufactured gas engines, boilers and related equipment, are seen as key points of interest.