Malaysia's Feed-in Tariff Mechanism



The Malaysian Ministry of Energy, Green Technology and Water has announced new degression rates for photovoltaic technology under the Malaysian FIT (Malaysia's Feed-in Tariff) mechanism. Further changes to the FIT system have also been announced.
As such, the degression rate for photovoltaic systems up to 24 kW will remain at 8%, while the rate for larger systems will be increased from 8 to 20%. Additionally, the degression rates for bonus criteria of locally manufactured PV modules and inverters has been abolished. It was previously 8%.
The new degression rates will come into effect from March 2013 and they are applicable to Malaysian photovoltaic quotas released in 2013.
The Malaysian Sustainable Energy Development Authority (SEDA), which manages the country’s FIT system, also announced that all companies registered in the e-FIT online system are required to key in information regarding all their Ultimate Beneficiary Shareholders, after the opening of the e-FIT online system on March 5 and before March 20.
Ownership caps have additionally been imposed. Individual shareholders have been capped to a maximum installed capacity of 5 MW of photovoltaics, whereas for companies, the maximum installed capacity of 30 MW has been imposed.
The Malaysian FIT system was introduced in 2011 and obliges Distribution Licensees to buy the electricity produced from photovoltaic systems for 21 years from Feed-in Approval Holders. Investors interested in applying for a FIT rate  need to apply either manually or online via SEDA Malaysia’s official website.
Malaysia, which still has a regulated electricity market, imposes caps on renewable energy production. Capping is achieved by putting a capacity limit or quota for new feed-in approvals in respect of each renewable resource for 6 month windows over the next 3 years. SEDA argues the reason for the 6 month window frame is to limit the waiting period for the next available set of quotas to a maximum of 6 months.

Australian Solar Micro-Inverter Technology



Melbourne's Semitech Semiconductor Pty Ltd has been awarded a grant of $1.86 million to further develop its micro-inverter technology.
   
The grant is part of the Gillard Government's $200 million Clean Technology Innovation Program; which has been funded by revenue from the carbon price.
  
A micro-inverter is a small box situated on the back of or nearby a solar panel that converts direct current electricity generated by a solar panel to alternating current; suitable for use by household appliances. Unlike a traditional solar inverter, which handles the conversion for a number of panels plus other functions, a micro-inverter is associated with a single panel.
  
Micro-inverters can offer improved overall system efficiency, but it comes at a cost - a solar panel array using micro-inverters can be up to 35 per cent more expensive than a system using a central solar inverter.
  
Semitech Semiconductor's technology doesn't require peripherals such as additional processing chips, a modem or a separate controller; which all add to the price of micro-inverter based systems. It is an integrated circuit that performs the functions of a micro-inverter and smart grid communication.
  
Federal Minister for Industry and Innovation, Greg Combet, attended the Semitech Semiconductor premises in Kensington with Cath Bowtell, the Labor Candidate for the Seat of Melbourne, to announce the grant.
  
"The carbon price has settled into Australia's economy and is working to reduce carbon pollution," Mr Combet said. As part of this transformation, the Gillard Government is partnering with businesses to invest in clean and renewable technologies. Our assistance to Semitech Semiconductor is a great example of these partnerships."
 
Ms. Bowtell said she was "delighted that a Melbourne company is contributing to our clean energy future and that Labor is helping turn this clever idea into reality."
  
The Clean Technology Innovation Program offers grants of between $50,000 and $5 million. More information on the program is available at www.ausindustry.gov.au.

Middle East's Renewable Energy Plans


Recent reports from the UAE, Qatar and Saudi Arabia detailing their respective national energy plans are attracting the attention of leading international renewable energy solution and service providers. While there has been much talk of the region's desire to diversify, some have been skeptical whether these plans would be realized. However initial Q1 announcements have been extremely promising, indicating the MENA region's PV sector alone could rise to 3.5 GW annually by 2015.

One of the leaders in this field is the Mubadala-owned entity, Masdar. Masdar City is UAE's flagship project, which Masdar and the UAE Government believe showcases the true potential of renewable energy by being the world's first 100% clean energy city.

Toufic Mezher, Professor of Engineering Systems and Management at the Masdar Institute of Science and Technology (MIST) confirmed, "Masdar will soon be announcing the commissioning of the largest solar CSP power plant, located in Abu Dhabi, the 100 MW Shams 1 project."

Mezher is also speaking about best case practices in renewable energy policies at the 4th Annual Qatar Alternative Energy Investors Summit, taking place in Doha on March 24th and 25th.

"This summit will address the major critical challenges facing the GCC region in the future. New investments in infrastructures, especially in the energy and water sectors are needed to meet the economic and population growth of each country," he added.

First Solar, one of the world's largest fully integrated PV solution providers is also participating at the summit, as they are looking to expand their business in the MENA region. They have also secured the project to build a 13 MW solar power plant for Dubai Electricity and Water Authority (DEWA).

His Excellency Saeed Mohammed Al Tayer, DEWA's Managing Director and CEO, explained, "The PV plant installation is a key step in the implementation of the energy diversification strategy adopted by the Supreme Council of Energy, in which solar energy is set to become part of Dubai's energy portfolio. The strategy is based on Dubai's growing energy requirements and aims to maintain security of supply in the Emirate of Dubai."

First Solar's Vice President of Business Development and Sales for Europe, Middle East and Africa, Christopher Burghardt gave his reasons for attending the summit: "It's an exciting platform to demonstrate our capabilities and build lasting relationships in a region that is starting to embrace the full potential of clean energy. Attending allows new and existing business partners to see first-hand our strengths right across the PV value chain."
 
Organized by French business information group Naseba, supported by Kahramaa and opened by their President, His Excellency Engineer Essa Bin Hilal Al Kuwari, the summit is bringing together 150 regional decision makers to meet global leaders in renewable energy.

In an earlier statement, His Excellency Essa Bin Hilal Al Kuwari, confirmed, "Kahramaa has also started developing a 150 to 200 MW generation capacity project from solar power by utilizing the unused areas in its electricity grid stations and water reservoir stations."

MPPT vs PWM Solar Charge Controllers


A solar charge controller is needed in virtually all solar power systems that utilize batteries. The job of the solar charge controller is to regulate the power going from the solar panels to the batteries. Overcharging batteries will at the least significantly reduce battery life and at worst damage the batteries to the point that they are unusable. The most basic charge controller simply monitors the battery voltage and opens the circuit, stopping the charging, when the battery voltage rises to a certain level. Older charge controllers used a mechanical relay to open or close the circuit, stopping or starting power going to the batteries. 

More modern charge controllers use Pulse Width Modulation (PWM) to slowly lower the amount of power applied to the batteries as the batteries get closer and closer to fully charged. This type of controller allows the batteries to be more fully charged with less stress on the battery, extending battery life. It can also keep batteries in a fully charged state (called “float”) indefinitely. PWM is more complex, but does not have any mechanical connections to break.
  
The most recent and best type of solar charge controller is called Maximum Power Point Tracking or MPPT. MPPT controllers are basically able to convert excess voltage into amperage. This has advantages in a couple of different areas.
 
Most solar power systems use 12 volt batteries, like you find in cars. (Some use other voltages and the same advantages apply to these systems as well.) Solar panels can deliver far more voltage than is required to charge the batteries. By, in essence, converting the excess voltage into amps, the charge voltage can be kept at an optimal level while the time required to fully charge the batteries is reduced. This allows the solar power system to operate optimally at all times.

Another area that is enhanced by an MPPT charge controller is power loss. Lower voltage in the wires running from the solar panels to the charge controller results in higher energy loss in the wires than higher voltage. With a PWM charge controller used with 12V batteries, the voltage from the solar panel to the charge controller typically has to be 18V. Using an MPPT controller allows much higher voltages in the wires from the panels to the solar charge controller. The MPPT controller then converts the excess voltage into additional amps. By running higher voltage in the wires from the solar panels to the charge controller, power loss in the wires is reduced significantly.

MPPT charge controllers are more expensive that PWM charge controllers, but the advantages are worth the cost. If you can afford it, you should definitely use an MPPT charge controller.

The final function of modern solar charge controllers is preventing reverse-current flow. At night, when solar panels are not generating electricity, electricity can actually flow backwards from the batteries through the solar panels, draining the batteries. You’ve worked hard all day using solar power to charge the batteries, you don’t want to waste all that power! The charge controller can detect when no energy is coming from the solar panels and open the circuit, disconnecting the solar panels from the batteries and stopping reverse current flow.

For pros and cons of each type of charge controllers click here!

Top 40 renewable energy leaders gains new projects



The fourth quarter of 2012 was an active one for the renewable energy industry in Hawaii, with six substantial projects becoming operational. They include the 69-megawatt Kawailoa Wind Farm on Oahu, the 21-megawatt Auwahi Wind Farm on Maui, the 6-megawatt Port Allen and 300-kilowatt MP3 solar facilities on Kauai, the 5-megawatt Kalaeloa Solar Power II facility on Oahu and the completion of H-Power’s third boiler, adding 27-megawatts to its already existing 46-megawatt Oahu project.

With those projects now off the State Energy Office’s “Hawaii Clean Energy Leaders” top 40 list of proposed projects, three new developments moved onto the list. They include the KRS2 Solar Project on Kauai, Pacific Light & Power’s biodigestion project on Kauai and Molokai Irrigation System’s hydroelectric project.

The State Energy Office noted that due to the high volume of projects moving off the list, there is noticeable movement for virtually all of the remaining projects, with some gaining significantly more ground than others.
These projects include the Waikoloa Water Project, which has a new developer — HWS Wind 001 LLC — and is currently under construction and the Anahola Solar Project, which had their power-purchase agreement approved by the Hawaii Public Utilities Commission.

Topping the recently-updated Top 40 list is the 8-megawatt biofuel Honolulu Emergency Power Facility for the Honolulu International Airport, followed by the 6.6-megawatt waste-to-energy Honua Power Project on Oahu, the 6.7-megawatt Green Energy Agricultural Biomass-to-Energy Facility on Kauai, the 21.5-megawatt Hu Honua Bioenergy biomass facility on the Big Island and the 12-megawatt Anahola Solar Project on Kauai.

Only one project, the 3-megawatt Poipu Solar Project on Kauai, fell off the list, which identifies 40 planning projects around the state that are demonstrating progress in becoming commercial enterprises. Complete list can be downloaded from here!

World Future Energy Summit (WFES)



On an expanse of desert land in the United Arab Emirates, about 11 miles (7 kilometers) away from the bustling capital city of Abu Dhabi, there is a lonely outcropping of peculiar buildings -- a work in progress.

It’s called Masdar City, and it could represent the future of green living if all goes according to plan. This mini-metropolis -- where cars are prohibited and buildings are designed according to strict energy-efficiency rules -- is intended to generate almost no waste or refuse and be virtually free of air pollution.

Charles Ebinger, the director of the Energy Security Initiative at the Brookings Institution, has been to this experimental village. “You’re whisked to Masdar City on futuristic trains with no conductors, all on magnetic strips,” he said. “All the buildings there are using renewable energy. And they have channeled the airflow so the winds come through the streets in such a way that even in the dead of summer, it creates a cooling effect that obviates the need for a backup source of cooling energy.”

Amazing as it sounds, Masdar City is at risk of becoming a high-profile failure. Only a few hundred researchers and students live in this urban oasis, which was planned to house tens of thousands of people. An ambitious layout, including homes, businesses and recreational areas, has not yet materialized. The project’s initial 2016 completion date has been pushed back by at least 10 years.

This situation is indicative of the UAE’s strange relationship with renewable energy technology. The government is serious about green research and development -- and keen to publicize it. But in fact, this oil-rich gulf state has some major glitches to address before it can take its place as a global leader in green energy.

Meeting of Minds

The UAE makes no bones about its intention to become a hub for green energy enthusiasts around the world. This week, for the sixth year in a row, Abu Dhabi hosted a global summit to attract some of the best thinkers and businesses in the field of renewable energy.

The World Future Energy Summit, or WFES, ran from Tuesday to Thursday; over 30,000 people were in attendance. Keynote speakers included such luminaries as French President Francois Hollande, Argentinian President Cristina Fernandez de Kirchner, and Abu Dhabi’s own Crown Prince, Sheik Mohammed bin Zayed Al Nahyan.

The Emirates are a big oil producer, the seventh-largest in the world, according to the International Energy Agency: they pumped upwards of 3 million barrels per day in 2011, more than Iraq. Dimitra Ampela of Reed Exhibitions, which organized the WFES, does not see a paradox there. In fact, she said it’s precisely the Emirates’ history that makes the country well-suited to playing a leading role in renewable energy.

“UAE’s commitment to renewable energy and sustainability traces back to the late president and founder of the UAE, Sheikh Zayed bin Sultan Al Nahyan, who was adamant about conservation and encouraged the reduction of the UAE’s environmental footprint,” she said.

The summit attendees represented about 150 countries and 514 registered businesses, which set up booths in a massive convention hall and took the opportunity to build new connections.

“The atmosphere is very electric,” said Scott Burger, who traveled to Abu Dhabi to represent GTM Research, a division of the Boston-based Greentech Media, a clean technology research and media organization.

The paradox of building a center for Big Green Energy in one of the capitals of Big Oil was not lost on him; he noted that oil giants like Exxon (NYSE:XOM), Shell (LON:RDSA) and Statoil (NYSE:STO) were out in force at the event.

“There are some interesting dynamics on display. Given the deep relationships that many oil majors have with the Abu Dhabi government, they have some of the most prominent booths at the WFES. This is an interesting juxtaposition against the booths of solar, biomass and wind companies that are also present,” Burger said.

That oil companies would dominate the convention floor should come as no surprise; hydrocarbons were essentially the enabler for this event. Because of oil revenues, the country enjoys a friendly relationship with the West, its status as a major commercial hub, and a GDP-per-capita of about $48,000 -- the 12th highest in the world, just after the United States. Oil fuels the state-sponsored research that has made the UAE a pioneer in green energy.

Negative Energy

The strong dependence on hydrocarbon fuels leaves the UAE in a bind. The country actually has to import natural gas, and demand has outpaced domestic production since 2007. Oil, on the other hand, is plentiful -- but government officials aren’t fooled by the impressive profits. They are scrambling to diversify in order to avoid falling victim to market volatility, fluctuating prices and geopolitical conflicts in other oil-producing states.

And when it comes to renewable energy, the UAE may be impressive in terms of its commitment to research and development -- but in terms of performance, it’s got a long way to go. The tiny state is certainly not leading the way in terms of reducing its carbon footprint.

Carbon dioxide emissions per capita are sky-high at 22.6 metric tons, according to the latest data from the World Bank. That’s higher than any Western country -- but to be fair, much of that output can be blamed on factors somewhat beyond the UAE’s control: its role as a major oil and gas producer, its costly need to desalinate seawater, and its high-traffic international airports in Abu Dhabi and Dubai.

That’s why the UAE set a very low bar for itself in terms of renewable energy generation. The government is aiming for 7 percent of domestic power to come from renewable energy by 2030. By comparison, the European Union is shooting for 20 percent by 2020.

In large part, this sluggishness can be blamed on heavy government subsidies for the wrong kind of energy.

“The UAE is in a strange situation because they subsidize oil, gas and electricity so heavily for their domestic citizens that demand is spiraling out of control,” said Ebinger of the Brookings Institute. “There’s no demand to conserve gas and electricity because it’s so cheap, and it’s eating into the oil and gas that the country could export for profit.”

It would make sense to cut the subsidies that effectively cheapen its hydrocarbon output, but here political concerns outweigh economic ones. Recent Arab Spring revolutions in other Middle Eastern countries have spooked public officials in the UAE, a federation of seven monarchies in which average citizens have little say in the policies that govern their daily lives.

Vast wealth, and the fuel subsidies they enable, have so far kept the public complacent.

“[The government is] just so fearful of ending the subsidy in fear of a political backlash,” said Ebinger. “They really are sitting on a time bomb.”


A Way Out

If hydrocarbon subsidies are here to stay, the UAE’ s only way to generate more energy profits at home is to find new ways of generating power. But renewable sources like wind and solar just can’t be scaled up fast enough to meet growing demand, which will only accelerate with rapid population growth.

“You have to distinguish between research and commercialization,” Burger of GTM Research said. “What makes renewable energy technologies so difficult is the price it takes to scale them.”

For the UAE, nuclear energy presents a viable alternative. The government has already ordered four nuclear plants from South Korea, to be installed in Abu Dhabi. One is already under construction and could become operational by 2017, and educational initiatives are underway to train a new generation of students in nuclear reactor operations.

That leaves the market with little incentive to invest in cleaner, safer alternatives like solar, wind and biomass. So the government is footing the bill for research in that arena, crossing its fingers in the hopes that the risk will pay off.

“The market is simply not competitive, and renewable energy is very cost intensive,” said Karim Elgendy, the founder and general coordinator of Carboun, an advocacy organization promoting energy sustainability in the Middle East.

“With energy prices so low in the UAE, you can’t sell renewable energy at a reasonable price to make a profit, and you’re not going to invest in it. So instead of liberating the market and letting electricity prices go wherever they would go, the government takes it on. That’s why the country’s renewable energy initiatives are almost exclusively government-led projects.”

The UAE has the resources to fund these sorts of ventures; it also has the long-term incentive. But without the market on its side, the monarchy is walking a lonely road.
 

The Global Stage

If Masdar City and the WFES are any indication, the UAE is certainly eager to put on a good show. Both these ventures are funded by Masdar, a subsidiary of the government-owned Mubadala Development Company. Masdar has never been shy about funding travel and accommodation for renewable energy buffs, public relations professionals and the press. The idea is that these investments will eventually pay off -- and judging by the deals closed at this week’s WFES, the strategy is working.
 

Masdar inked a deal with the kingdom of Jordan, laying a framework for future cooperation on renewable energy projects. France also negotiated a stronger partnership with the UAE-owned company, building on years of collaboration on green projects.

Down in the booths, the deal-making was just as fervent. A handful of companies even received prizes for their work in renewable energy, including Ceres, a Boston-based non-governmental organization that works with investors and policymakers in Europe and the United States to advocate for sustainable energy practices.

Ceres received $1.5 million when it won the Zayed Future Energy Prize in the NGO category. Company spokesperson Peyton Fleming said the funds would be used to strengthen its ongoing initiatives.

“Our perspective is that you need both stronger government policies and strong private action from companies and investors,” he said. “Unless companies and investors are investing trillions of dollars in this space in coming years, and until that amount of capital is moved into the clean energy economy, we are still going to be wrestling with rising greenhouse gas emissions.”

That’s a philosophy the UAE can certainly relate to. And despite formidable challenges the government faces in the field of renewable energy generation at home, there’s no denying the progress the small Gulf country has made.

Masdar City, that metropolis in limbo, can now boast a fully operational school and research facility called the Masdar Institute for Science and Technology.

“The UAE has invested a lot in the Masdar Institute for Science and Technology, which has an extensive renewable energy lab and is collaborating with Massachusetts Institute of Technology,” said Elgendy, who has visited the facility.

The green businesses and clean-energy homes may be missing from the scene, but research and development are flourishing.

That’s where the UAE has made the most impact so far, and where it still leads much of the world in terms of committed resources. Polluted air, oil rigs and half-finished projects notwithstanding, the UAE has at least proven its dedication to engineering the technologies that the rest of us may need in the decades to come.