Why does AWER suggest the closure of SEDA?

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AWER Advocates for SEDA's Closure Due to Redundancy and Flawed Feed-in-Tariff Mechanism

The Association of Water and Energy Research Malaysia (AWER) has proposed the closure of the Sustainable Energy Development Authority (SEDA) on grounds of significant redundancy and the inherent flaws within its implemented Feed-in-Tariff (FiT) mechanism. AWER argues that the legislative framework establishing SEDA, the Sustainable Energy Development Authority Act 2011, is superfluous given that the Energy Commission already possesses the jurisdiction to develop renewable energy (RE) as outlined in Section 14 of the Energy Commission Act 2001. Furthermore, AWER contends that the current FiT system, managed by SEDA, is unsustainable and does not foster continuous growth in the RE sector.
Redundancy of SEDA and Overlapping Jurisdictions

AWER's primary argument for SEDA's closure stems from the belief that the authority's functions are already covered by existing legislation. Specifically, Section 14 of the Energy Commission Act 2001 vests the responsibility for developing renewable energy with the Energy Commission. This overlap suggests that SEDA's existence is unnecessary, potentially leading to a duplication of efforts and a wastage of public funds. AWER's call for an independent panel to study the implementation of the Renewable Energy Act 2011 directly under the Energy Commission aims to rectify this redundancy and ensure a more streamlined approach to RE development.
Criticisms of the Feed-in-Tariff (FiT) Mechanism

A significant portion of AWER's objection to SEDA is linked to the perceived failures of the FiT mechanism. The association highlights a lack of transparency concerning the formula used to determine the FiT unit cost, which includes components such as Capital Expenditure (capex), Operational Expenditure (opex), Regulated Profit, and Efficiency Perks. This opacity is problematic as the FiT is funded by the public, who are entitled to understand how these costs are derived. AWER also points to issues encountered by Germany, a country often cited as a model for RE implementation via FiT, suggesting that the mechanism is not as reliable as presented by Malaysian government agencies.
Concerns Regarding Transparency and Governance

AWER has also raised concerns about potential monopolization within the solar photovoltaic (PV) FiT sector, referencing past discussions by Members of Parliament. The association criticizes SEDA's response to these concerns, noting that the authority has attributed issues to the computer system rather than addressing the fundamental flaws in the mechanism or governance. AWER emphasizes that a computer system is merely a tool controlled by human input and output, and therefore, cannot solely be blamed for systemic problems. They advocate for a thorough, independent investigation into these matters to uphold the integrity and transparency promised by the Prime Minister.

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Why does AWER suggest the closure of SEDA?

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