The Ministry of Energy and Natural Resources (KETSA) has launched the Malaysia Renewable Energy Roadmap (MyRER) to meet the national goal of 31% renewable energy (RE) capacity by 2025 and 40% by 2035. The MyRER will be implemented from 2022 to 2035, setting forth a strategic framework for Malaysia’s RE plan and measures to a low-carbon energy system by implementing four technology-based pillars, namely solar, bioenergy, hydro and new sources. These four pillars will be facilitated by catalyst initiatives including leveraging electricity market reform and enhancing financial availability.
Minister of KETSA, Datuk Seri Takiyuddin Hassan stated that the country’s RE capacity from 8,450 megawatts (MW) in 2020, will expand by 4,466 MW to 12,916 MW by 2025, and by another 5,080 MW to 17,996 MW by 2035. By 2030 and 2035, the increase in RE capacity will lessen the intensity of carbon emissions in the electrical supply sector by 45% and 60% respectively. The Roadmap will also serve as a guide for industry players on the RE development in Peninsular Malaysia, and the eastern Malaysian states of Sabah and Sarawak; the potential, targets and strategic framework as well as expected economic spillover value of RE’s growth; and reference for RE capacity projections as well as national strategies.
MyRER is projected to generate spillover effects from investments worth MYR 20 billion (USD 4.78 billion) by 2025 and MYR 33 billion (USD 7.89 billion) by 2035, as well as an estimated 47,000 employment opportunities in the RE field. In response to the launch of the roadmap, Maybank Investment Bank forecast that the solar energy pillar will be the primary contributor to Malaysia’s growth goals in the renewable energy sector. The solar energy pillar is likely to be based on existing programs such as the Net Energy Metering and Large-Scale Solar (LSS) projects. It was noted by Maybank that new business models, such as corporate power purchase agreements, Third Party Access, peer-to-peer energy trading, and the monetization of renewable energy certificates, could be added to the RE’s programs.
(Sources: The Edge Markets; Business Times; Malay Mail)