RENEWABLE ENERGY ACT 2011

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 725 RENEWABLE ENERGY ACT 2011 As at 31 Disember 2025 This text is ONLY AN UPDATED TEXT of the Renewable Energy Act 2011 by the Attorney General’s Chambers. Unless and until reprinted pursuant to the powers of the Commissioner of Law Revision under subsection 14(1) of the Revision of Laws Act 1968 [Act 1], this text is NOT AN AUTHENTIC TEXT. 2 RENEWABLE ENERGY ACT 2011 Date of Royal Assent … … … ... 23 May 2011 Date of publication in the Gazette … … … … 2 June 2011 … … … … 28 January 2019 Latest amendment made by P.U. (A) 251/2025 which came into operation on 3 LAWS OF MALAYSIA Act 725 RENEWABLE ENERGY ACT 2011 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and commencement 2. Interpretation PART II FEED-IN TARIFF SYSTEM 3. Establishment of feed-in tariff system 4. Eligibility for participation in feed-in tariff system 5. Application for feed-in approval 6. Additional information or documents 7. Grant or refusal of feed-in approval 8. Conditions of feed-in approval 9. Power to impose additional conditions and to vary or revoke conditions 10. Revocation of feed-in approval 11. Appeal PART III CONNECTION, PURCHASE AND DISTRIBUTION OF RENEWABLE ENERGY 12. Renewable energy power purchase agreement 4 Laws of Malaysia Section 13. Connection to supply line 14. Priority of purchase and distribution 15. Technical and operational requirements PART IV FEED-IN TARIFF 16. Payment and duration of feed-in tariff 17. Degression of feed-in tariff 18. Review and adjustment of degression rates 19. Recovery of moneys from Renewable Energy Fund 20. Administrative fees 21. Grid parity 22. Dishonest use of resources to generate electricity PART V RENEWABLE ENERGY FUND 23. The Renewable Energy Fund 24. Allocation from electricity tariffs 25. Expenditure to be charged on Renewable Energy Fund 26. Investment 27. Accounts PART VI INFORMATION GATHERING POWERS 28. Performance audit 29. Provision of information 30. Proof of compliance 31. The Authority may retain documents 32. Access to records 33. Record of information ACT 725 Renewable Energy Section 34. Publication of information 35. Offence for non-compliance PART VII ENFORCEMENT 36. Authorized officer 37. Authority card 38. Power of investigation 39. Search and seizure with warrant 40. Search and seizure without warrant 41. Access to computerized data 42. Warrant admissible notwithstanding defects 43. List of things seized 44. Release of things seized 45. Power to require attendance of person acquainted with case 46. Examination of person acquainted with case 47. Admissibility of statements in evidence 48. Authorized officer to complete investigation and hand over to police 49. Cost of holding equipment, etc., seized 50. No cost or damages arising from seizure to be recoverable 51. Obstruction 52. Additional powers 53. Compounding of offences 54. Prosecution 55. Offences by body corporate PART VIII GENERAL 56. Report on implementation and performance of feed-in tariff system 57. Compliance with all other laws 5 6 Laws of Malaysia Section 58. Directions by the Authority 59. Register 60. Power of Minister to make regulations 61. Power of Authority to make rules 62. Penalties for subsidiary legislation 63. Power of Minister to amend Schedule PART IX SAVINGS AND TRANSITIONAL 64. Existing renewable energy generators 65. Existing licences SCHEDULE ACT 725 7 LAWS OF MALAYSIA Act 725 RENEWABLE ENERGY ACT 2011 An Act to provide for the establishment and implementation of a special tariff system to catalyse the generation of renewable energy and to provide for related matters. [1 December 2011 except sections 17 and 18—throughout Malaysia except for the State of Sarawak; and 31 December 2012 sections 17 and 18—throughout Malaysia except for the State of Sarawak; P.U. (B) 589/2011] ENACTED by the Parliament of Malaysia as follows: PART I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Renewable Energy Act 2011. (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette, and the Minister may appoint different dates— (a) for the coming into operation of this Act in different parts of Malaysia; 8 Laws of Malaysia ACT 725 (b) for the coming into operation of different provisions or Parts of this Act; or (c) for the coming into operation of different provisions of this Act in different parts of Malaysia. *(3) The Minister may, by order published in the Gazette, suspend the operation of the whole or any of the provisions of this Act in different parts of Malaysia. Interpretation 2. In this Act, unless the context otherwise requires— “prescribed” means prescribed by the Minister by way of regulations made under section 60 or prescribed by the Authority by way of rules made under section 61, as the case may be; “electricity” has the meaning assigned to it in section 2 of the Electricity Supply Act 1990 [Act 447]; “appointed auditor” means any auditor appointed by the Authority under section 28; “degression rate” means the rate of the annual progressive reduction of the feed-in tariff as specified in the fifth column of the Schedule; “feed-in approval” means an approval granted under section 7; “public safety” has the meaning assigned to it in section 2 of the Electricity Supply Act 1990; “private safety” has the meaning assigned to it in section 2 of the Electricity Supply Act 1990; *NOTE—The operation of the whole of the Renewable Energy Act 2011 [Act 725] is suspended in the State of Sabah with effect from 3 January 2024—see P.U. (A) 396/2023. Renewable Energy 9 “grid parity”, in relation to a particular renewable energy installation, means the time at which the feed-in tariff rate applicable to that renewable energy installation is equal to or cheaper than the displaced cost; “displaced cost” means the average cost of generating and supplying one kilowatt hour of electricity from resources other than the renewable resources through the supply line up to the point of interconnection with the renewable energy installation; “Fund” means the Renewable Energy Fund established under section 23; “distribute” means to operate, maintain and distribute electricity through the electricity distribution network; “Minister” means the Minister charged with the responsibility for matters relating to the supply of electricity; “Minister of Finance” means the Minister charged with the responsibility for finance; “authorized officer” means any public officer, officer of the Authority or officer of the Commission authorized in writing by the Minister under section 36; “feed-in approval holder” means a person who holds a feed-in approval; “distribution licensee” means the holder of a licence to distribute issued by the Commission under section 9 of the Electricity Supply Act 1990; “eligible producer” means a person who is eligible to apply to participate in the feed-in tariff system under section 4; “renewable energy installation” means an installation which generates renewable energy and includes any technical facility of that 10 Laws of Malaysia ACT 725 installation which converts mechanical, chemical, thermal or electromagnetic energy directly into electricity; “renewable energy power purchase agreement” means the renewable energy power purchase agreement between a distribution licensee and a feed-in approval holder under section 12; “Authority” means the Sustainable Energy Development Authority Malaysia established under the Sustainable Energy Development Authority Act 2011 [Act 726]; “electricity distribution network” means a system or part of a system at nominal voltage of less than one hundred and thirty two kilovolts of electric lines or cables, of substations and of associated equipment and buildings for transporting electricity to any person regardless of whether a generating plant is connected to such system; “feed-in tariff system” means the system established under section 3; “renewable resources” means the recurring and non-depleting indigenous resources or technology as set out in the first column of the Schedule; “Commission” means the Energy Commission established under the Energy Commission Act 2001 [Act 610]; “supply line” has the meaning assigned to it in section 2 of the Electricity Supply Act 1990; “feed-in tariff” means the special tariff payable to feed-in approval holders in consideration for renewable energy generated and sold to a distribution licensee as specified in the third column of the Schedule; “feed-in tariff commencement date”, in relation to a feed-in approval holder, means the date on which the renewable energy installation first generates renewable energy for commercial sale pursuant to the renewable energy power purchase agreement which has become effective in accordance with section 12; Renewable Energy 11 “effective period”, in relation to a feed-in approval holder, means the period commencing from the feed-in tariff commencement date as specified in the fourth column of the Schedule; “renewable energy” means electricity generated or produced from renewable resources. PART II FEED-IN TARIFF SYSTEM Establishment of feed-in tariff system 3. (1) There is hereby established a feed-in tariff system to provide for— (a) the connection to supply line connection points for the distribution of renewable energy generated by renewable energy installations which are owned by feed-in approval holders; (b) the priority of purchase and distribution by distribution licensees for renewable energy generated and sold by feed-in approval holders; and (c) the feed-in tariff to be paid by distribution licensees to feed-in approval holders for such renewable energy. (2) The feed-in tariff system shall be administered and implemented by the Authority in accordance with the provisions of this Act. (3) In carrying out its functions and obligations under this Act, the Authority shall give due consideration to— (a) the objective of this Act; (b) the renewable energy policies of the Government; 12 Laws of Malaysia ACT 725 (c) the amount of moneys available in the Fund from time to time; (d) the need for sustainability and diversity in renewable resources; and (e) the need for fair competition and transparency in the implementation of the feed-in tariff system. Eligibility for participation in feed-in tariff system 4. A person shall be eligible to apply for a feed-in approval allowing the person to participate in the feed-in tariff system if— (a) the person proposes to generate renewable energy from a renewable energy installation having an installed capacity of not more than thirty megawatts or such higher installed capacity as may be approved by the Minister; and (b) the person meets such other criteria as may be prescribed by the Authority from time to time. Application for feed-in approval 5. (1) An eligible producer may apply to the Authority for a feed-in approval under section 7 by submitting a written application to the Authority in such manner and accompanied by such fees as may be prescribed by the Authority. (2) An application under this section may be withdrawn at any time before it is granted or refused. (3) The Authority may allow an application under subsection (1) to be furnished by an electronic medium or by way of an electronic transmission. Renewable Energy 13 (4) For the purposes of subsection (3), the conditions and specifications under which an application is to be furnished shall be as determined by the Authority. Additional information or documents 6. (1) The Authority may, at any time after the receipt of an application for a feed-in approval under section 5, request the eligible producer to give to the Authority, within the period specified in the request, additional information or documents relating to