Examining the Small Renewable Energy Power (SREP) Program in Malaysia

Abstract

The Small Renewable Energy Power (SREP) Program was the premier policy mechanism implemented by the national government to promote small-scale renewable electricity in Malaysia from 2001 to 2010. However, it managed meet less than 3 percent of its original goal by 2005. This study investigates what happened. More specifically, using a qualitative semi-structured interview approach with data presented in a narrative format, it answers the following five questions: (1) What are the primary energy policy and security challenges facing Malaysia? (2) What were the drivers behind the SREP in Malaysia? (3) What were the major benefits arising from the SREP? (4) What were the significant challenges to implementation? (5) What lessons or insights does the SREP offer for the study of energy policy design and implementation more generally? We find that the SREP failed to achieve its targets due to capacity caps, a lengthy approval process, lack of monitoring, exclusion of stakeholders, and few (if any) pre-feasibility studies. Other factors explaining its poor performance include opposition from the national utility Tenaga Nasional Berhad and electricity tariffs unmatched with true production costs.