KUALA LUMPUR (July 20): The government does not intend to review the existing power purchase agreements (PPA) for large scale solar (LSS) to align them with the recent increase in the green electricity tariff (GET), according to Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad.

"I think [the link between the existing LSS PPA contracts and the GET hike] is unrelated. If we look at the green electricity tariff alone, we look at how our neighbours are doing it, the tariff should be at a premium to conventional electricity," he told reporters on Thursday (July 20) when asked whether the government has any plan to review the LSS PPA.

The government has committed to increase the target of renewable energy (RE) installed power capacity to 70% by 2050 by tapping Malaysia's abundant solar resources through the widespread deployment of rooftop solar.

The idea of LSS power plants is a way for the country to quickly reach its RE production targets. Applicants interested in running LSS projects have been invited to bid on four iterations of the programme since the first round of bidding in March 2016.

The last LSS4 was commissioned during the Covid-19 period. The government selected a total of 30 bids under LSS4 in March 2021 — including Uzma Bhd, Tenaga Nasional Bhd, Cypark Resources Bhd and Solarvest Holdings Bhd — to develop solar farms with export capacity ranging from 10 MW to 50 MW.

In his speech at MIDF's roundtable discussion "Navigating The Energy Transition — What’s Next For Malaysia?", Nik Nazmi said the government’s decision to adjust the GET to 21.8 sen per kWh, from the current 3.7 sen/kWh in August, is in line with regional standards.

“The 30% GET subscription quota limit has been abolished and 100% subscriptions are now allowed. So, it’s an opportunity also for businesses to walk the talk and share the burdens of the energy transition. The revenue collected from the implementation of the GET will be used for developing and increasing new RE capacity sources for Malaysia. And eventually everyone will benefit.

“If we can get the energy transition right, everyone wins. Also, while we may be a nation whose contributions to global greenhouse gas emissions appear modest, we cannot deny the truth: climate change knows no borders. It affects us all. The ultimate bottom line is our collective survival on this earth — the only one we have,” he remarked.

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