Seda Malaysia denies granting feed-in approval for geothermal resources to any company

PUTRAJAYA: Sustainable Energy Development Authority of Malaysia (SEDA Malaysia) has not granted any feed-in approval for geothermal resources to any company, including Tawau Green Energy Sdn Bhd (TGE).

Chief Executive Officer Datin Badriyah Abdul Malek said although geothermal was included in the Schedule of the Renewable Act 2011 [Act 725] and the subsidiary legislation, which was gazetted on December 26, 2013, there was no tariff listed for geothermal resources as the rate was yet to be determined. 

"SEDA Malaysia will include the tariff for geothermal resources in the Schedule of Renewable Energy (RE) Act 2011 once the tariff is approved by the Ministry of Energy, Green Technology and Water," she said in response to queries by Serdang Member of Parliament Dr Ong Kian Ming who asked whether the 30MW geothermal feed-in-tariff (FIT) quota had been awarded via direct negotiation to TGE.

In a statement, Badriyah said the information published by TGE on Nov 8, 2013 was true and valid due to the fact that geothermal energy qualified as a renewable resource under the feed-in tariff mechanism.

"The resource had been included in the amendment of the Schedule of RE Act 2011 gazetted on Dec 26, 2013. 

"SEDA Malaysia has not awarded any feed-in approval to TGE as has been claimed by Ong. TGE, like all applicants for feed-in approval, need to submit their application which currently could not be done as the tariff has not been listed in the schedule. 

"TGE would have to submit applications and adhere to all procedures to be eligible and qualify to be become a feed-in approval holder under the RE Act 2011," she clarified.. 

Badriyah said SEDA Malaysia was aware TGE was undertaking the effort to develop its geothermal power plant as it was approved by the ministry in 2010 under the Small Renewable Power Programme Project before the feed-in tariff was implemented. 

"As clarified earlier, SEDA Malaysia has not granted any FIT approval to TGE. Thus the assumption the minister had over-ride SEDA Malaysia in deciding the quota allocation to the company is absolutely untrue," she added. - Bernama