Malaysia to offer 250 MW of fixed-price green power contracts for 2027

KUALA LUMPUR, Sept. 15 (Xinhua) -- Malaysia's new 250-megawatt (MW) quota under the feed-in tariff (FiT) program for 2027 is expected to generate 3 billion ringgit (about 740 million U.S. dollars) in investment and create more than 5,000 direct and indirect jobs, the Ministry of Energy Transition and Water Transformation said on Tuesday.

FiT is a government mechanism that requires utility companies to buy electricity produced from renewable resources at a fixed premium price under a long-term contract.

The quota for biogas, biomass and small hydropower will be offered to eligible renewable energy (RE) developers in Peninsular Malaysia and the Federal Territory of Labuan, the ministry said in a statement.

Of the total quota, 30 MW is allocated for biogas, 120 MW for biomass and 100 MW for small hydropower, and applications for the quota can be submitted via e-bidding on the Sustainable Energy Development Authority (SEDA) Malaysia website from Feb. 3 to March 24, 2027, it said.

"The government expects the new FiT quota to generate 3 billion ringgit in investment, including 510 million ringgit in purchases of locally installed gas engines and boilers," the ministry said.

The initiative is part of the government's efforts to increase the share of renewable energy in the country's electricity supply to 70 percent by 2050.