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Role of feed-in tariff policy in promoting solar photovoltaic investments in Malaysia: a system dynamics approach.

Ahmad, Salman; Tahar, Razman Mat; Muhammad-Sukki, Firdaus; Munir, Abu Bakar; Rahim, Ruzairi Abdul

Authors

Salman Ahmad

Razman Mat Tahar

Firdaus Muhammad-Sukki

Abu Bakar Munir

Ruzairi Abdul Rahim

Abstract

Solar photovoltaic has shown a significant rise in terms of worldwide installation. One of the main reason is due to the introduction of the FiT (feed-in tariff) policy by the governments. This paper aims to evaluate FiT policy in promoting solar PV (photovoltaic) investments in Malaysia by using a dynamic systems approach. The assessment model captures the complexities arising from the interaction of FiT rate dynamics, construction delays, and investors' and technology learning dynamics in an integrated framework. The model provides total operational PV capacity, amount of finances needed to support the policy, and the cost of environmental savings, as output. Computer simulations, based on twelve scenarios, were used as a means to study the model behaviour. For the most favourable scenario, a total capacity of about 16 GW PV by 2050 can be expected, while for the least favourable scenario, expectations would be only about 10 GW. On the expenditure side, the most favourable scenario can cost up to MYR (Malaysia Ringgit) 15 billion, whereas, for the least favourable ones, the cost can be as low as MYR2 billion. The maximum cost of CO2 abatement can vary from MYR 0.05 per kg-CO2 to the lowest value of MYR 0.02 per kg-CO2.

Journal Article Type Article
Publication Date May 1, 2015
Journal Energy
Print ISSN 0360-5442
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 84
Pages 808-815
Institution Citation AHMAD, S., TAHAR, R.M., MUHAMMAD-SUKKI, F., MUNIR, A.B. and RAHIM, R.A. 2015. Role of feed-in tariff policy in promoting solar photovoltaic investments in Malaysia: a system dynamics approach. Energy [online], 84, pages 808-815. Available from: https://doi.org/10.1016/j.energy.2015.03.047
DOI https://doi.org/10.1016/j.energy.2015.03.047
Keywords Feed in tariff; System dynamics; Solar PV; Malaysia

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