KUALA LUMPUR, Dec 6 — The revised surcharge on electricity bills for renewable energy (RE) will create 11,412 jobs, whilst the total investment approved for RE capacity is estimated at RM7.3 billion.

Sustainable Energy Development Authority (SEDA) Chief Executive Officer Datin Badriyah Abdul Malek said since the Feed-in Tariff (FiT) mechanism was implemented in December 2011, 2,686 applications had been approved.

Out of these, 89.1 per cent were for solar photovoltaic (PV) for individuals, 8.9 per cent for solar PV for non-individuals and two per cent collectively for biomass, biogas, and small hydro, she said in a statement here today.

Citing the solar PV industry as an example which has only eight PV service providers providing grid-connected PV services in 2006, more than 100 PV service providers have emerged in Peninsular Malaysia alone, she said in response to Penang Chief Minister Lim Guan Eng and Serang Member of Parliament Dr Ong Ka Ming's statement questioning SEDA to justify the revision of the surcharge on electricity bill for the RE Fund from 1.0 per cent to 1.6 per cent.

Badriyah said: "With the opening of the Feed-in Tariff (FiT) to Sabah and Labuan, SEDA expects the solar PV service providers to grow in numbers over the coming years.

"This RE capacity is expected to achieve commercial operation by 2015. Under the previous Small Renewable Energy Power (SREP) programme which was launched on May 11, 2001, only 61.2 MW of RE capacity was connected to the grid as of end 2010," she said in a statement here today.

Badriyah also noted that importantly the RE targets meted out under the National RE Policy and Action Plan was on the basis of collection of two per cent surcharge imposed on electricity bills.

She said for the past two years, only one per cent surcharge was collected and without a revision of the surcharge, the RE industry and market growth in the country under the FiT will come to a grinding halt.

If RE initiatives are to suffer an abrupt end, Badriyah said the national objectives of achieving energy security, autonomy and mitigating climate change will be seriously impacted.

On December 2, the government has announced to revise the surcharge on electricity bills for the RE Fund from 1.0 per cent to 1.6 per cent for Peninsula Malaysia, effective Jan 1, 2014 following the review in electricity tariffs.

Sabah consumers, for the first time, will be imposed a surcharge of 1.6 per cent in their electricity bills. — Bernama