Buck up on performance, sustainable energy body told
Serdang MP Ong Kian Ming says the Sustainable Energy Development Authority is meeting less than half its renewable energy target.
The Sustainable Energy Development Authority (Seda) should buck up on its performance first before seeking to increase the renewable energy fund tariff, a DAP parliamentarian said today.
Citing data from Seda's own website, Serdang MP Ong Kian Ming said Seda was meeting less than half of its target for renewable energy capacity.
"Seda needs to clean up on its own act and improve on its own performance before asking for this extra one percent.
"The government of Malaysia, especially the Ministry of Energy, Green Technology and Water, should evaluate Seda's performance before even considering this one percent increase, which will increase the burden on consumers and some of the SMEs (small- and medium-scale enterprises) in our country," Ong told a press conference today.
He said Feed-in Tariff (FiT) permit holders should have installed 70.3 megawatts of renewable energy capacity by the end of 2012, whereas another 41.1 megawatts should have been installed up to August this year.
However, Ong said, only 31.53 megawatts have actually been installed last year, and another 11.82 megawatts so far this year.
He was responding to earlier reports that Seda was seeking the government's approval to increase the renewable energy tariff from one percent to two percent.
'Seda collects RM300 million a year from levy'
The levy is currently imposed on all electricity users who have incurred RM77 and above on their monthly electricity bill for Seda to pay Feed-in Tariff (FiT) renewable energy producers.
A report by The Star dated Aug 28 quotes Seda's CEO Badriyah Abdul Malek as saying that it collects RM300 million a year from the levy, but more is needed to spur development in the renewable energy sector.
In addition, Ong questioned whether FiT permit holders have met the quotas that Seda had allocated them, saying that there are reasons to suspect that they have not.
As an example, he said, the parent company of one of the permit holders has been issued a PN17 notice by Bursa Malaysia, and therefore is not likely to be able to build a multi-million ringgit solar power plant despite Seda's website saying that it has done so.
"If it had and since the parent company is a listed company, it would have had press announcements and site visits to announce the commencement of the plant and about revenue is starting to flow back to this company, to reassure investors to have confidence in it," he said.
Malaysiakini is withholding the company's name pending its response.
Ong also pointed out that at least 28 permit holders had been given extensions on their commencement dates, and called on the Seda to disclose the exact number of extensions given and for how long.
He also urged Seda to disclose a full list of beneficiaries of the RM44 million disbursed so far under the FiT agreements.