Joint Media Statement by Dr. Ong Kian Ming, MP for Serdang, Tony Pua MP for PJ Utara, Nurul Izzah, MP for Lembah Pantai
It is almost 2 years since the revelation by Tony Pua and Nurul Izzah that a large percentage of the FiT Quota for Solar PV was awarded to companies controlled by a certain individual who was related to a retired senior civil servant.[1]
The application system was scandalised by the computerised "first-come-first-served" system. The then Chairman, Tan Sri Fong Chan Onn and CEO Datin Badriyah Abdul Malek had defended it as a "fair" system, despite criticism and protests from the industry and ourselves. The "first-come-first-served" system had not only allowed certain parties to design application strategies to win a larger share of the quota, the computer system also often crashed, resulting in chaotic and less than satisfactory outcomes.
While SEDA has made some positive changes to its FiT system since then, it was only yesterday that SEDA finally adopted an open ballot for the FiT Quota for Solar PV. [2] Hence, we would like to congratulate the new SEDA CEO, Ms Catherine Ridu, and her team at SEDA for this bold initiative to revamp the balloting process. It will finally ensure a fair opportunity for all qualified and interested applicants for the renewal energy license quota.
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of June, 2014, at Everly Hotel in Putrajaya, SEDA conducted an open ballot session that was witnessed by Deputy Minister for Energy, Green Technology and Water, Dato Seri Mahdzir bin Khalid, and new SEDA CEO, Catherine Ridu and most importantly, all the applicants that had submitted applications for the FIT Quota. The open ballot process was overseen by Deloitte and Co, an auditing company, and representatives from the Auditor General’s office, the Integrity Institute of Malaysia as well as the Malaysian Photovoltaic Industry Association (MPIA) were present as observers of the entire process. The open ballot started at 3pm and was divided into three boxes – for quotas that were less than 72kWh (Category A), for quotas between 72kWh to 180kWh (Category B), and for quotas from 180kWH to 425KwH (Category C) – to ensure that the small players are not left out of the quota allocation.
For Category A, a total of 42 applications were successful and allocated 1.5MW. For Category B, a total of 13 applications were successful and allocated 2.145MW. For Category C, a total of 18 applications were successful and allocated 6.8MW. The results of the open ballot were uploaded on SEDA’s website last night, on the 18th of June 2014.[3]
The open ballot in the presence of all the stakeholders and international auditors is an example which we hope other ministries and government agencies will also emulate.
We urge the new SEDA CEO as well as the Minister of Energy, Green Technology and Water, Datuk Seri Dr. Maximus Ongkili, to continue with this open ballot system for other oversubscribed FIT quotas in order to ensure fairness and transparency in the system. It would be a case of once step forwards, two steps back if SEDA or the Ministry were to award the Solar PV FIT Quota for non-Individuals for >425kWH to up to 1MW applications via a non-open process (5MW will be awarded for Sabah and Labuan while 10MW will be awarded for Peninsular Malaysia).
We also urge the Minister to stop all direct negotiations for large scale Solar PV projects in the interest of fairness and transparency and to give the assurance that there will be no more direct negotiations for mega Solar PV projects with 1MDB, especially in the light of a recent report that 1MDB may be awarded directly negotiated projects that amount to 500MW![4]
Dr. Ong Kian Ming, MP for Serdang
Tony Pua, MP for PJ Utara
Nurul Izzah, MP for Lembah Pantai
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