Malaysia has announced that it will remove a ban on exports of renewable energy. This move is part of a wider effort to develop its clean power industry and increase generation from non-fossil fuel sources.
Malaysia currently generates just over 1% of its electricity annually from renewable sources. The Southeast Asian country banned exports of renewable energy in October 2021 in the hopes of developing the local industry.
It is predicted that reversing the ban will encourage companies to build renewable power generation capacity on a larger scale and take advantage of high demand from next-door Singapore.
Creating an electricity market system to implement cross-border renewable energy trade will likely establish Malaysia as a regional renewable energy hub. The country committed to substantially lower its greenhouse gas emissions by 2030 and reach net-zero emissions by 2050.
According to the International Renewable Energy Agency, Malaysia will require USD 375 billion in order to double its investments in renewable power capacity, infrastructure and energy efficiency required to achieve that ambitious target.
Malaysia targets the proportion of renewable energy supply to reach 70% of its total capacity by 2050. The current installed capacity is just one-fourth of the total. Expanded capacity would allow surplus renewables capacity to be traded with markets in the region.
(Sources: Reuters; Eco-Business.com)