PUTRAJAYA: It is time companies producing power from their waste materials expand their production and sell the renewable energy (RE) to Tenaga Nasional Bhd (TNB), said Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik.

As an incentive for these producers to sell to the energy corporation, he said the Government had increased the RE selling price from 17 sen per kilowatt to 19 sen per kilowatt.

“Manufacturers who produce waste materials, such as wood chips, rice husks and palm oil fibre, are generating RE for their own use.

“They are not hooked up to the national grid to sell the power to TNB, as incentives are not forth coming.

“To show the Government’s and the power utility’s commitment towards developing RE for the country’s future, the selling price for RE for biomass under the Small Renewable Energy Projects programme will be raised,” he said after witnessing the MoU signing between Malaysia Energy Centre and MHES Asia Sdn Bhd here yesterday.

MHES Asia is the first company to be approved the new RE selling price.

Dr Lim was elaborating on what he earlier said in his speech in which he expressed his disappointment as only 12MW of RE was generated for connection to the national grid under the Eighth Malaysia Plan.

More effort was needed to reach the 350MW target under the current plan, he said.

Regarding discussions involving his ministry, TNB and independent power producers on the re-negotiation of supply contracts, he said: “Whatever the decision, it will not be too drastic for the consumer.”

Source: The Star. “Sell energy to TNB, firms urged”

(2006-10-10)

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