Evaluation of different electricity feed in tariff in reducing CO2 emission

Abstract

One of people’s life fundamental aspects is energy. Demand for energy is increasing from year to another year. The primary energy sources for the whole world are fossil fuel such as crude oil, coal and natural gas. However, the world is facing energy crisis because these sources are depleting because it is non renewable sources. It is projected by International Energy Outlook has projected that energy deman increase to 812 Exajoule in 2035 [31] . Burning fossil fuel to extract energy can contribute to global warming because burning these sources can produce GHG emission such as CO2, NOX and CO. Thus, renewable energy sources such as solar, wind and hydro is replacement for fossil fuel sources because RES can produce cleaner energy compare to fossil fuel sources. However, RES technologies are not mature yet and the technologies installing RES are still expensive. So, supporting mechanism is introduced to help promoting RES. One of the most successful supporting mechanisms is FiT. European countries such as Spain and Germany have many experiences in implementing FiT. For example, Germany is one of leading PV install country even though the geographical location of Germany has low solar radiation. This is due to Germany had introduced FiT in 2000 and this has transform PV industry in this country. Malaysia has introduced BIPV since July 2005 because solar is the most promising energy source in Malaysia due to geographical location is in equatorial region. Thus, 2011, Malaysia had implement FiT to support promoting RES. In this project, financial analysis result shows implementing FiT has give 15% to 20% IRR and 4 to 9 years payback period for rooftop PV system. At the same time, average reduction of CO2 for 3 houses with PV system in Kuala Lumpur is 166.67 tonnes CO2. Thus, this has showed that FiT can help promoting BIPV in Malaysia.