KUALA LUMPUR, Oct 11 — The federal government will replace the Power Purchase Agreement (PPA) mechanism to an open market system.
In tabling the Supply Bill (Budget) 2020 in Parliament today, Finance Minister Lim Guan Eng said this would enable renewable energy suppliers to compete directly in the retail market.
“As part of the liberalisation of the electricity market, the government has decided to migrate the current power purchase system towards a wholesale market in the future.
“A more transparent and open energy market would ensure electricity costs that are more competitive and reasonable to the people,” he said.
Lim also said the government planned to attain a national target of 20 per cent usage of renewable sources by 2025.
Therefore, in Budget 2020, he said the government has decided to extend its Green Investment Tax Incentive (GITA) and Green Income Tax Exemption (GITE) for service providers until 2023.
“Tax exemption up to 70 per cent for a period of 10 years will be introduced to companies involved in solar leasing,” he added.