Many incentives have been established by the government to encourage renewable energy utilisation in Malaysia.
The Green Technology Financial Scheme (GTFS) was one approach introduced by the government, with an allocation of RM1.5 billion to the project in 2010. The scheme is advantageous mostly to producers and users of green technology. The government will bear 2% of the total interest/profit rate and provide a guarantee of 60% on the financing through the Credit Guarantee Corporation Malaysia Berhad.
The remaining 40% financial risk will be borne by participating financial institutions.
The fund was increased by RM2 billion in 2012 and the application period was extended for another 3 years to 2015 (GTFS, 2012). Besides, the renewable energy & Energy Efficiency (EE) Scheme was introduced to allow any renewable energy -or EE-related business to borrow up to 80% (phase I: 2006) and 85% (phase II: 2007) of total project costs with an attractive interest rate and repayable up to 15 years (PTM, 2010).
The Feed in Tariff (FiT) is a more comprehensive incentive system introduced in 2009 to encourage project owners to srenewable energyell their electricity to the utility at a reasonable price. Currently, only four types of renewable energy technology, namely biomass, biogas, mini hydro and solar photovoltaic (PV), are recognised in the system.
The potential of other renewable energy technologies including solar thermal, wind and geothermal is in the process of evaluation by Sustainable Energy Development Authority (SEDA).
The basis of the inclusion of other renewable energy technologies depends on the availability of resources, technical potential and economic viability of the renewable energy projects under local conditions (KeTTHA, 2011).
marine renewable energy is new compared to the above-mentioned technologies. Therefore, limited
data are available. marine renewable energy is yet to become one of the accepted technologies in the FiT system.
Many incentives have been established by the government to encourage renewable energy utilisation in Malaysia.
The Green Technology Financial Scheme (GTFS) was one approach introduced by the government, with an allocation of RM1.5 billion to the project in 2010. The scheme is advantageous mostly to producers and users of green technology. The government will bear 2% of the total interest/profit rate and provide a guarantee of 60% on the financing through the Credit Guarantee Corporation Malaysia Berhad.
The remaining 40% financial risk will be borne by participating financial institutions.
The fund was increased by RM2 billion in 2012 and the application period was extended for another 3 years to 2015 (GTFS, 2012). Besides, the renewable energy & Energy Efficiency (EE) Scheme was introduced to allow any renewable energy -or EE-related business to borrow up to 80% (phase I: 2006) and 85% (phase II: 2007) of total project costs with an attractive interest rate and repayable up to 15 years (PTM, 2010).
The Feed in Tariff (FiT) is a more comprehensive incentive system introduced in 2009 to encourage project owners to srenewable energyell their electricity to the utility at a reasonable price. Currently, only four types of renewable energy technology, namely biomass, biogas, mini hydro and solar photovoltaic (PV), are recognised in the system.
The potential of other renewable energy technologies including solar thermal, wind and geothermal is in the process of evaluation by Sustainable Energy Development Authority (SEDA).
The basis of the inclusion of other renewable energy technologies depends on the availability of resources, technical potential and economic viability of the renewable energy projects under local conditions (KeTTHA, 2011).
marine renewable energy is new compared to the above-mentioned technologies. Therefore, limited
data are available. marine renewable energy is yet to become one of the accepted technologies in the FiT system.
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