Call for Malaysia to liberalise solar power industry

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Between 2014 and 2019, solar is the only renewable energy (RE) source that has grown by a whopping 432% in installed capacity.

In his first exclusive interview after his appointment as the president of Malaysian Photovoltaic Industry Association, Davis Chong urges the government to liberalise the solar power industry.

The growth is further strengthened by the entry of non-power producers into the industry and the growing need for companies to boost their environmental, social and governance profiles. Chong calls for the removal of quota for the generation of solar power, pointing out that the existing quotas are “too small for the market demand.”

This is considering that most of the government policies for RE are up to the year 2025 as the immediate target. “In the past, we did not have such limitations. This is unnecessary, considering the kind of demand we see from the market, ” he says.Referring to the Report on Peninsular Malaysia Generation Development Plan 2020 , he says the country’s RE pursuit seems to be “slowing down” from 2026 to 2039.

Selco is a programme whereby electricity is being generated for individual, commercial and industrial consumers’ own usage and any excess is not allowed to be exported to the grid. Moving forward, Chong says the government could consider introducing a spot market for electricity in Malaysia, taking reference from the existing models in the Philippines, Australia and the United States.

Chong highlighted the importance of having a comprehensive and well-thought solar energy policy to attract foreign direct investments and boost the country’s “green gross domestic product or GDP.”

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