The Ministry of Energy Transition and Water Transformation (PETRA) recently shared some good news when it announced that the government will waive the Renewable Energy Fund (KWTBB) charge of 1.6% on electricity tariffs for renewable energy programs starting August 1.
This move is in line with the government's goal to accelerate the energy transition and increase the participation of renewable sources in the country's electricity supply, especially towards the target of a 70% renewable energy mix by 2050.
The charge exemption covers the Green Electricity Tariff initiative, the Corporate Renewable Energy Supply Scheme and the Community Energy Aggregation Mechanism.
According to PETRA, this implementation is expected to encourage the corporate and industrial sectors to continue supporting the country's sustainable energy agenda.
The KWTBB charge was introduced in 2011 to finance the development of renewable energy through the feed-in tariff (FiT) mechanism operated by SEDA Malaysia.
Since then, the country's renewable energy capacity, especially solar, has increased significantly from just 5 megawatts (MW) in 2011 to 5,100 MW today.
Energy from biogas, biomass and mini-hydro also contributed 855 MW to the country's supply system, the ministry said.
Following the implementation of the new electricity tariff structure on July 1, the government also reviewed existing programs and introduced this measure as a catalyst for more progressive growth in the country's renewable energy industry.
