Renewable energy generation capacity will be increased up to 70 percent by 2050 through the direction of renewable energy development.
The Minister of Economy, Rafizi Ramli, said the matter was agreed by the Cabinet on May 3, to create new economic opportunities and guarantee energy supply with a capacity of 25 percent as of December 2022.
He said, the Cabinet also agreed to expand the implementation of TBB development based on the principle of willing buyers and sellers (willing buyer willing seller) to encourage the involvement of corporate companies.
“The installation of solar systems in government buildings will be accelerated and enhanced through development allocations to provide direct benefits in terms of electricity bill savings to ministries and government agencies.
“TBB’s cross-border trade policy will be implemented through the electricity exchange system method that will be developed and set by the government,” he said..
Rafizi said the increase in TBB capacity required new investment estimated at RM637 billion until 2050.
“It includes investment in TBB generation resources and strengthening of grid infrastructure including grid connection, energy storage system integration and grid network system operating costs.
“This TBB capacity increase will allow the excess capacity generated to be traded across the borders of neighboring countries based on the mechanism that will be set by the government, further fulfilling the desire to realize the ASEAN Power Grid
“This projected increase in capacity is in line with the results of the Malaysia Energy Transition Outlook (METO) report on the projected route of a low-carbon energy system, which will be included in the country’s Power Development Plan (PDP),” he said.
Rafizi said the Cabinet’s decision is expected to have an immediate impact on the growth of the TBB industry because it involves some policy changes of the previous administration.
“The government’s decision to remove cross-border TBB trade barriers is expected to benefit Malaysian companies in the TBB industry to build generation capacity on a larger scale by taking advantage of the high demand from Singapore.
“The expansion of the implementation of TBB through a self-contained system will pioneer the way towards the development of industrial and residential parks that maximize solar potential equipped with energy storage facilities, thus reducing dependence on electricity generation using fossil materials.
“The new target setting of capacity and energy mix that doubles the transition to TBB increases 11 times from 2023 to 2050 is expected to ease the people’s electricity costs in the long term,” he said.
Rafizi said, the creation of an electricity market system to implement cross-border renewable energy trade will put Malaysia at the forefront as a regional renewable energy center.
“A total of RM50 million has been allocated to install solar infrastructure on rooftops and government facilities across the country within six months before the end of this year.
“A larger allocation will be given for that purpose in the upcoming development expenditure,” he said.
