The Energy Commission (EC) of Malaysia, said that its decision to maintain the maximum limit of applicants for the Corporate Green Power Programme CGPP at between 5 MW and 30 MW is to encourage more participants to participate in the programme and ensure a fair distribution.
“We previously had a quota of 600 MW. This was increased to 800 MW after Nik Nazmi Nik Ahmad, Natural Resources, Environment and Climate Change Minister announced the additional quota for CGPP of 200 MW on March 9. This means that we will have more participants. It could be overwhelming if we opened without a cap or limit,” said Abdul Rahim Ibrahim, chief operating officer of EC.
“It is also to give other participants more chances. We believe that 5 MW-30 MW is sufficient to cover the areas they have applied for,” said Abdul Rahim at the briefing with programme applicants.
He said that the quotas offered by the program are also suitable to encourage the participation of small-medium and large non-domestic consumers.
The commission must also be aware of the energy market ecosystem to ensure that solar power is not produced in excess compared with the demand for it from businesses.
This is the first round of our CGPP program. We will see what the participants’ response is, including the solar power producers, corporate consumers, and the EC, said Abdul Rahim. The EC may expand its capacity if there were a second CGPP program.
He said that all players approved under the CGPP should ensure their power assets will be operational by the end of 2025.
Abdul Rahim responded to the EC’s request for a battery-energy storage system (BESS), saying that it was optional, and not mandatory.
In its Information Guide on CGPP the EC strongly encourages participants to install BESS with at least an hour of solar power plant export capacity. This will increase the use of solar electricity, reduce the intermittent effect of solar PV generation on the supply systems, and improve energy management.
The CGPP is a contract between the solar energy producer and the corporate customer.
A solar power generator that has successfully subscribed to the quota can then apply for a program called the New Enhanced Dispatch Arrangement, which allows merchant generators the opportunity to bid on selling energy to the grid.
The programme is open to all interested parties from 9 May to 31 December 2023 or until all quotas have been filled. The CGPP forms part of a government initiative to increase the production and use of renewable energy.