Malaysia's PV Demand Analysis

- Nov 13, 2018-

Malaysia's geographical location is in the well-lit Southeast Asia, with an average daily sunshine volume of about 4.21 kWh to 5.56 kWh per square meter. It is rich in light resources, and photovoltaics is also the best-developed project in Malaysia's renewable energy. As of last year (2017), the cumulative grid-connected capacity under the FiT policy was 380MW. 

Malaysia Renewable Energy Development 

Malaysia Renewable Energy Development Plan is implemented in accordance with the 2009 National Renewable Energy Policy and Implementation Plan (Action Plan 2009). Under the Action Plan 2009, the main practice plans to promote renewable energy development are Second, the first is the Renewable Energy Act 2011 (Act 725). The main axis is to provide subsidies for FiT and provide related supporting methods to promote the development of renewable energy. 

Another practical plan is the Sustainable Energy Development Authority Act 2011 (Act 726). The main goal is to establish the Malaysian Sustainable Energy Development Authority (SEDA) to manage and promote the development of the renewable energy industry. 

As of the end of 2017, the cumulative installed capacity of renewable energy for FiT has reached 563MW, among which PV is the best development. The cumulative installed capacity of 380MW accounts for 67% of the total installed capacity, followed by biomass and cumulative installed capacity. The amount of 96.8MW accounts for about 17% of the total installed capacity. On the other hand, the amount of electricity generated by each of the renewable energy sources is also the best for PV performance. 



*Data source: Organized from sedaMalaysia official website 

Malaysia PV policy 

Malaysia pays special attention to PV development, so in addition to the FitT policy for all renewable energy projects, Net Energy has also been launched in 2016. The Metering program and the Large Solar Scale Project (LSS) promote industrial development. 

1. Feed-in Tariff (End of application at the end of 2017) 

Malaysia's FiT subsidy policy applies to all renewable energy projects, where PV subsidies are the highest of all renewable energy, but in terms of funding constraints and Under the development of balanced renewable energy industry, the subsidy amount of FiT has a decreasing trend year by year. For example, the project with capacity ≦4kw has been reduced from 1.23ringgit/kWh (about US$29.4cents/kWh) to 0.6682ringgit/ in 2012. kWh (about US$16cents/kWh), a drop of 45%. 



However, due to financial pressure, the Malaysian government announced in September 2016 that the FiT subsidy for PV will be closed by the end of 2017. Instead, the policy is to launch the Net Energy Metering program and the large-scale solar power plant plan in 2016. (LSS). 

2. Net Energy Metering(NEM) 

The Malaysian Sustainable Energy Development Agency (SEDA) launched the Net Energy Metering program in 2016 with a target installed capacity of 500MW and a policy period of 2020. The purpose of the policy is to be able to implement Self-Consumption and reduce the financial burden. However, as of now, the policy has been issued for about 2 years, the actual installed capacity is only 8MW, and the policy implementation is not effective. 

3. Large Solar Scale (LSS) 

The Large Solar Power Project (LSS) was launched in 2016 and is scheduled to reach a target installed capacity of 1,200MW by 2020. This year (2018) April Energy The bureau announced that it has completed a large-scale solar power plant project with a total of 1,228 MW, and its results exceeded expectations. 



Malaysia is positioned as a foundry in the global PV industry supply chain. More than 90% of the local PV products are exported to Europe, the US and Asia. At present, many PV companies such as Longji, Jingao, Jingke, First Solar, Hanwha, OCI and so on have set up production bases in Malaysia as a base for export. 

In the market development, in the past, stimulated by the policy Act 725, PV enjoys a high subsidy rate, which makes the installed capacity have stable demand every year, but the subsequent new policy plan will be introduced after mid-2016. Therefore, the push effect takes time to ferment. As of the end of 2017, most of the installed capacity is still supported by the FiT policy. 



* Source: SEDA official website 

Malaysia PV module import volume analysis 

1. Single polycrystal analysis 

From January 2017 to August 2018, components shipped from China to Malaysia to Polycrystalline is the main component, accounting for 61% and 39% for single crystal products. 



2. Type analysis of Chinese component shipments to Malaysia 

If you compare 2017 full year with January to August 2018, you will find that shipments have increased significantly, as of August, compared to 2017 In the year, 215 MW was added, and the proportion of polycrystalline products in the overall proportion also increased significantly. It is estimated that Malaysia's installed capacity will grow significantly this year (2018) and next year (2019). 



Conclusion 

Malaysia's photovoltaic development has been around for about 6 years since the launch of Act 2011. It is already the best development of local renewable energy. Now PV has officially bid farewell to high subsidies to a new policy development direction, and future installed demand will be dominated by self-consumption (self-consumption) and large-scale photovoltaic power plants. 

2020 is the limit for the integration of the policy, so it can be expected that there will be a wave of installed waves in the current year. In summary, Malaysia's PV prospects are promising, demand will remain stable by the end of 2020, and is expected to be 2020 Later, there will be new policies to promote the development of photovoltaics.

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