In our previous discussion on Renewable Energy (RE) Procurement in Malaysia, we explored various approaches to acquiring renewable energy. Today, we delve into one of these approaches: the Green Energy Tariff (GET) program by TNB and compare it to procuring unbundled Renewable Energy Certificates (RECs) from the local RE system owner.
What is the Green Energy Tariff (GET)?
In line with the Malaysian Government's aspiration to increase renewable energy generation to 31% by 2025, the Government has introduced a new program known as the Green Electricity Tariff (GET) to replace the existing myGreen+ scheme.
Launched by the Malaysian government in 2022, the GET program empowers consumers to access low-carbon electricity, reducing their environmental impact. This initiative is especially crucial for those facing limitations in installing RE systems, such as solar panels. Through this program, consumers can directly purchase the RE attributes generated from sustainable sources through the utility provider, TNB.
Consumers enrolled in the GET Program will receive the Malaysian Renewable Energy Certificate (mREC), which is recognized internationally at the end of each year.
How GET Works?
When participating in the GET program, TNB consumers pay GET Block subscription prices on top of the normal tariff for their monthly electricity consumption, based on their RE needs or it can cover up to 100% of their consumption. Then TNB will get the RECs redeemed to customers right after the end of calendar year within 30days working day.
Sources of Renewable Energy in GET
Renewable energy sources in the GET program come from a mix of solar power plants under the Malaysia Large-Scale Solar (LSS) Program and TNB's hydropower stations.
GET and Imbalance Cost Pass Through (ICPT)
ICPT, or Imbalance Cost Pass Through, is a mechanism in Malaysia's electricity tariff system that adjusts electricity generation costs every six months based on fluctuations of fossil fuels in global market prices.
It helps reflect changes in fuel prices, and consumers may experience adjustments in their electricity bills when fossil fuel costs rise or fall. Those who subscribe to GET can be granted exemptions from ICPT surcharges because the energy they use, measured in kWh, comes from green and clean energy sources rather than traditional fossil fuels.
GET Price
As of August 1, 2023, the revised GET tariff is RM0.218/kWh. Subscribing to GET can waive the ICPT charges for the renewable energy purchased. The ICPT for Medium Voltage (MV) is RM0.170/kWh, and for Low Voltage (LV), it is RM0.037/kWh.
After the ICPT waiver, the net cost for GET for MV consumers is RM0.048/kWh (equivalent to RM48/REC or approximately USD10/REC), while for LV consumers, it is RM0.181/kWh (or RM181/REC, approximately USD38/REC).
How GET Is Calculated on Your Electricity Bill?
Let us explore an example of the GET subscription rate on your monthly electricity bill
Example 1 Calculation of Electricity Bill
Example 2 Calculation of Electricity Bill
Comparison of GET Bundled RECs and Unbundled RECs
The GET program stands out as one of the most accessible and user-friendly methods for individuals and businesses in Malaysia to procure renewable energy. It offers a straightforward path to cleaner energy sourcing.
However, it is crucial to keep in mind that the net GET price is closely tied to the ICPT charges, which are subject to revision every six months.
When ICPT charges rise, the GET waiver becomes more favorable, resulting in a reduced net GET price. Conversely, when ICPT charges decrease, the net GET price increases. Companies are advised to consider this dynamic factor when subscribing to the GET program to make informed and cost-effective decisions.
Saxon Renewables
Saxon Renewables offers a range of unbundled RECs options for corporate buyers, with a primary focus on meeting their requirements while maintaining the most cost-effective approach.
For many corporate buyers, especially in Malaysia, procuring RECs, whether bundled or unbundled, is a new endeavour. Saxon Renewables is here to provide support throughout your renewable energy procurement journey, from strategy development to execution.
There are numerous pathways available to help you achieve your renewable energy consumption objectives, and Saxon Renewables serves as your reliable sustainability partner for all your renewable energy needs.
Do not hesitate to reach out to us for further information and guidance on your sustainability journey.
