Call to boost solar power industry

by | Jul 11, 2021 | Business, LOCAL | 0 comments

Solar is the only Renewable Energy (RE) source that has grown by an astronomical 432 percent in installed capacity between 2014 and 2019 which is an indication of the growing interest in alternative energy.

The reason for the increased interest is due largely to conducive government policies such as tax incentives, cheaper photovoltaic systems that boosted solar energy use in the commercial as well as the residential sectors.

The growth is further strengthened by the entry of non-power producers into the industry and the rising need for companies to boost their Environmental, Social and Governance (ESG) profiles.

There is a huge untapped potential for the solar power industry in this country and it is complemented by an increasingly high demand from the market. But Malaysia’s tightly-regulated solar power industry policies have prevented the nation from realising its true potential.

This is why the Malaysian Photovoltaic Industry Association (MPIA) has called upon the government to liberalise the solar power industry. They urged the removal of quotas for the generation of solar power as existing quotas are very small to meet market demand.

MPIA stated that if the government feels that a quota is necessary, it is suggested that a quota of 3000MW is allocated until 2025 compared to the current quota of 300MW for the commercial sector for the period April 2021 to December 2023.

MPIA added that the government needs to provide clear guidelines on the size of quota allocations up to 2025 instead of topping up the quotas upon expiry. This is considering that most of the government policies for RE are up to the year 2025 as the immediate target.