Oil palm renewable energy businesses based on the feed-in tariff : mapping successful and sustainable business models for Malaysia

Abstract

This research explores oil palm renewable energy businesses based on the Feed-in Tariff (“FiT”) for biomass and biogas in Malaysia, from the perspective of Business Models. It has a particular focus on Business Models and the concept of Sustainability, particularly Renewable Energy Business Models for Sustainability. This thesis aims to investigate and model “Successful” and “Sustainable” FiT-based Oil Palm Renewable Energy Business Models in Malaysia to capture Economic, Environmental and Social value for a wide range of stakeholders, and increase the deployment of oil palm renewable energy in the country. The research is conducted by adopting an Interpretivist Research Paradigm involving qualitative research using semi-structured interviews and focus-group discussions. A total of fifteen (15) semi-structured interviews were carried out, involving research participants selected using purposive sampling from stakeholder groups. Two (2) focus group discussions were held to gain feedback on the interview guide and then on the data findings, from the three (3) focus group members with experience and expertise in oil palm renewable energy in Malaysia. This research has further contributed to the understanding of Renewable Energy Business Models, particularly Renewable Energy Business Models for Sustainability of oil palm renewable energy businesses based on the FiT in Malaysia. As this research has found, “Successful” and “Sustainable” FiT-based Oil Palm Renewable Energy Business Models can capture Economic, Environmental and Social value for a wide range of stakeholders and increase the deployment of oil palm renewable energy in Malaysia through: • the introduction of an Energy Conservation Promotion Fund (ENCON Fund); • the introduction of activities to promote awareness of oil palm renewable energy; • the promotion of local technology and expertise; • the promotion of Combined Heat and Power (CHP); • the introduction of a location-specific bonus tariff for Sabah in East Malaysia; • the development of a green grid; • the promotion of bio-fertiliser as a value-added product; • a One-stop Centre to coordinate the processing of all the project applications; • grid interconnection based on simple, clear and transparent requirements; • having at least 50% of the feedstock supply internally generated. Although this research is specifically tailored to FiT-based oil palm renewable energy businesses in Malaysia, other types of FiT-based renewable energy businesses may also find this research useful to them for embedding sustainability and for overcoming at least to some degree the barriers facing their businesses, by following and replicating the research process. By also investigating the issues and challenges confronting the FiT scheme in Malaysia for oil palm biomass and biogas, leading to conclusions and recommendations for the stakeholders including policy makers and renewable energy developers, this research has further contributed to the understanding and advancement of the FiT scheme in Malaysia. This will benefit not only the government and its regulatory agencies, and renewable energy developers in Malaysia but also key stakeholders in other palm oil producing nations wishing to embark on a similar FiT scheme.