YAB Prime Minister Dato’ Sri Ismail Sabri Yaakob called on all stakeholders to take advantage of the competitive advantage that Malaysia has to stimulate the growth and development of the sustainable energy industry to support the country’s aspirations towards carbon neutrality in 2050. He also stated that the focus on sustainable energy development will attract green and high-value investments to Malaysia in line with the current needs of the global community. The Prime Minister stated this when he officiated the 5th International Sustainable Energy Summit (ISES) at the Kuala Lumpur Convention Center this morning.
YAB Prime Minister also shared the view that the current trend in the world is so aggressive in reducing the carbon footprint, especially in development and investment to use electricity from sustainable sources. The increase in investment and demand for green electricity supply will open up new economic and business opportunities for players in the Renewable Energy (Renewable Energy) industry. Therefore, Malaysia needs to improve the existing electricity supply policy and regulatory framework so that it is in line with the current needs and demands to attract high-value green investments to the country. The Prime Minister is also confident that if Malaysia succeeds in establishing a viable energy transition policy, the country will be able to attract global corporate companies that need green electricity to come and invest.
Next, the YAB Prime Minister also announced a number of programs and reforms in the country’s electricity supply system to support energy transition efforts, namely:
(i) approval of the allocation and redistribution of TBB quota of 1,200 MW for solar resources under the following programs:
a. existing mechanisms include the New Enhanced Dispatch Arrangement (NEDA) and solar installations on building roofs;
b. identify and explore new TBB programs such as the development of solar parks, the supply of green electricity for the use of new data centers as well as the generation of green hydrogen; and
c. the implementation of a new option for the procurement of green electricity supply to corporate companies through the concept of a Virtual Power Purchase Agreement (VPPA), starting in the fourth quarter of 2022, with a 600MW quota offer.
(ii) implement the pilot initiative of the development of Green Energy Island in Redang Island and Perhentian Island, Terengganu to provide a consistent, affordable and low carbon electricity supply;
(iii) develop a Renewable Energy Certificate (REC) framework with clear and orderly governance and regulation to ensure that the RECs produced in this country have credibility, transparency and high value;
(iv) establish a legal framework to regulate the safety of electric vehicle (EV) charging infrastructure development with the provision of EV Infrastructure Development Guidelines under the Electricity Supply Act 1990 [Act 447] and will be enforced in the fourth quarter of 2022.
In his opening speech, YAB Dato’ Sri Ismail Sabri Yaakob also stated that the organization of the ISES 2022 Conference coincides with the current global developments which are rapidly discussing energy transition efforts to reduce greenhouse gas emissions, in addition to supporting the country’s commitment to becoming a carbon neutral country by 2050.
The opening ceremony of the 5th ISES Conference with the theme “Empowering Energy Transition” organized by the Ministry of Energy and Natural Resources (KeTSA) and the Sustainable Energy Development Authority (SEDA) Malaysia was also attended by YB Datuk Seri Takiyuddin Hassan, Minister of Energy and Natural Resources and His Excellency Fransesco La Camera, Director General of the International Renewable Energy Agency (IRENA).
During the opening speech, YB Datuk Seri Takiyuddin Hassan emphasized the importance of the efforts of electricity supply industry players in supporting the Government’s desire to reduce greenhouse gas emissions as well as realize the country’s aspirations towards carbon neutrality in 2050. He said, this commitment requires the combined efforts of all stakeholders in the field of sustainable energy
and hope that this ISES conference will open a space for discussion and create new relationships to support efforts to empower the energy transition agenda in our country.
The Director General of IRENA, in his keynote speech, shared the prospects and options of the energy transition route that Malaysia can pioneer including:
(i) energy demand in Malaysia is projected to increase in 2050 in line with the implementation of electrification policies and the expansion of energy efficiency initiatives;
(ii) The mix of TBB installed capacity in 2050 in electricity supply will reach 70%, with 51% generation from variable TBB sources (variable Renewable Energy);
(iii) generation sources from solar and hydro power generation will be the main TBB technologies that support the projected energy transition efforts;
(iv) efforts to increase vehicle penetration as well as EV infrastructure and supply chain development need to be accelerated, in addition to expanding existing bio-fuel programs to open opportunities for green hydrogen production;
(v) the investment projected to succeed in the energy transition effort until 2050 amounts to USD378 billion with most of the investment amounting to USD183 billion required for efforts to upgrade and increase the elasticity of the electricity supply grid system;
(vi) the investment required for the application of TBB technology and high energy transition efforts can be offset through system cost savings, fuel cost reduction and subsidy costs.
The ISES 2022 conference provides 4 main panel discussion sessions with 10 special discussion workshops attended by leading panelists, embassy representatives, industry players and intellectuals, from home and abroad. This conference has created the synergy needed by industry players and stakeholders in the sustainable energy sector to establish collaboration and cooperation towards realizing the country’s aspiration to become carbon neutral by 2050.
