The pace of subsidy for on-grid tariffs in Malaysia has not stopped. In April this year, the Malaysian cabinet passed the Renewable Energy Act and the relevant laws on on-grid tariff subsidies and submitted it to the National Assembly for deliberation. On June 10, the government announced the National Renewable Energy Policy and Action Plan. The goal of the plan is to increase the share of renewable energy in total energy use from the current 1% to 5.5% by 2015. The Congress will debate the renewable energy bill and setting up an electricity price subsidy enforcement agency in October. It is expected to be adopted and implemented in the second quarter of 2011. At that time, the establishment of a renewable energy development agency (SEDA) will be established to manage the electricity price subsidy related projects.
Haris's newly announced subsidy details do not include subsidies for wind energy and geothermal, which were previously included in the proposal. And Haris gave no explanation as to why the two technologies were not mentioned in the subsidy details.
Malaysia's electricity price subsidy policy includes some unique aspects, including power stations and foreign companies can not have a majority stake in the project. At the same time, Malaysia’s subsidy proposal also pays attention to circumventing the drawbacks of some similar Spanish subsidy programs, including annual caps and project registration. In the current proposal, the newly added renewable energy capacity quota for 2011 is 219MW, which will reach a total of 1000MW by 2015. In the first decade of the project, most of the new generation capacity will come from biomass power generation and small hydropower plants. Will mainly develop solar energy.