(10) The grid-extension system could be improved by introducing a cost-sharing option. But, the consensus decision from the focus group experts was that the sharing concept must be limited to building basic infrastructure from plants to the nearest point of the grid. In this regard, government intervention is vital to promote understanding between the utility and the market players to determine the amount of infrastructure investment and a feasible connecting distance for both parties. As an extra benefit, the authorities might offer financial incentives, such as tax exemption to plants that successfully finalise their infrastructure agreements and participate in the FiT scheme. At the same time, the 10 km connection distance condition set under the SREP should be
revisited and extended to a more reasonable range. Due to the nature of the millers’ business, that is producing oil palm rather than generating power, it is more appropriate for the utility to be responsible for maintaining the transmission
system including cables, transformers, switchgear, protection equipment and meters.