Understanding FiT

> LAUNCHED in December 2011, the Feed-in Tariff (FiT) scheme enables companies and house-owners to produce renewable energy from four sources – solar photovoltaic, biogas (organic waste, landfill, sewage sludge), biomass (agricultural waste, garbage) and small hydropower – and sell it to the grid.

> The power producers sign power purchase agreements with Tenaga Nasional Bhd and Sabah Electricity Sdn Bhd (distribution licensees) for tenures of 21 years for solar and hydropower, and 16 years for biogas and biomass. TNB and SESB (the FiT scheme has yet to cover Sarawak) are obligated under the Renewable Energy Act 2011 to accept the power into the grid.

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