A total integrated effort is needed for the renewable energy (RE) industry to ensure a just and systematic transition, considering the energy trilemma of affordability, security and sustainability.
This is at the Government forefront mission towards energy transition, said Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad, adding, a new investment of approximately RM637 billion up until 2050 in RE is required, which includes investments in RE generation sources, strengthening of grid infrastructure including transmission lines enhancement, energy storage systems integration and grid system network operation augmentation.
“Taking into account the Malaysia Energy Transition Outlook (METO) report, the government has announced an enhanced commitment to undertake an aspirational low-carbon energy pathway to accelerate our RE deployment in the power sector to 70 per cent, or 55 gigawatts (GW) by 2050, compared to the current level of 25 per cent, or 10GW, and the existing target of 40 per cent in 2050.
He said a robust and flexible grid is critical as the intended ramping up of RE will be very much solar-based.
“This is part of the commitment I made during the unveiling of METO, in which I had pledged to put comprehensive, competitive, and aspirational power generation and supply planning policies in place,” he said in his keynote address at the Energy Transition (ET) Conference 2023 powered by Tenaga Nasional Bhd in Kuala Lumpur, today (Aug 28).
This, he said, enables Malaysia to decarbonise and leverage its competitive advantage to draw in high-value yet environmentally-friendly investment that is sustainable and energy-centric.
Nik Nazmi said the government has also decided to allow cross-border trade of RE as a two pronged-strategy for Malaysia to capitalise and explore new higher-value RE demand in neighbouring countries, which will enable Malaysia to offer and enjoy greater grid flexibility with higher RE integration under the Asean Power Grid (APG) initiative.
“Certainly, the APG is a goal worth pursuing. As a multilateral undertaking, its achievement would result in a totally integrated Southeast Asian power grid. It would promote interconnectivity across the ten Asean member states with our combined population of more than 670 million and counting, allowing cross-border electricity trade across the region.
“The government invites all interested energy players, especially our local energy companies such as Telekom Nasional Bhd, to continue and facilitate the discovery of new and renewable sources of energy across the nation and our borders,” he said, adding, cross-border RE trading will be part of Malaysia’s contribution to the creation of the APG and, one would argue, towards strengthening Asean integration as a whole.
Nik Nazmi said the recently concluded 41st Asean Ministers on Energy Meeting (Amem-41) in Bali, Indonesia, has resulted in, among others, Malaysia, Indonesia, Brunei and the Philippines deciding to embark on a sub-region focus group to ramp up existing interconnectivity for green energy.
“Asean is an integral part of Malaysia’s future. Hence, it is crucial for us to achieve a just and comprehensive energy transition as an interconnected region, with the APG as a key component,” he said.
The Energy Transition concept emerged as a pivotal step in addressing these intertwined challenges, fostering a shift towards a low-carbon trajectory. He said Malaysia is committed to achieving net-zero greenhouse gas emissions by 2050, in alignment with its Nationally Determined Contributions (NDC) under the Paris Agreement.
The Minister underscored the significance of a resilient grid system, which is pivotal for successful renewable energy integration. He called upon Tenaga Nasional Berhad to leverage its extensive experience in grid development to modernise and digitalise the National Grid, supporting Malaysia’s transition and the realisation of the ASEAN Power Grid initiative.
Nik Nazmi further discussed the role of energy transition in supporting smart cities, emphasising the importance of optimising energy usage in buildings and promoting the circular economy. He also highlighted the commitment to green mobility, including the development of the electric vehicle industry and the exploration of green hydrogen as a fuel alternative.
The Minister expressed confidence in Malaysia’s ability to achieve its sustainable energy goals through partnerships, knowledge exchange, and collective efforts. He lauded the Energy Transition Conference for providing a platform for valuable perspectives and partnerships that will drive the acceleration of the energy transition journey.
The conference, powered by Tenaga Nasional Berhad (TNB), brought together prominent industry leaders, experts, and distinguished guests to deliberate on the urgent need for an energy transition and to discuss strategies for its acceleration.
Addressing the Energy Transition Challenges
TNB chairman Dato’ Abdul Razak Abdul Majid, at the launch said the ongoing transformation of the global energy system amidst significant challenges such as climate change and energy security. He highlighted the necessity of a balanced approach that considers the trilemma of energy security, sustainability, and affordability while also ensuring equity and inclusiveness in the transition process.
TNB’s Commitment to Energy Transition
TNB, with more than 70 years of experience in the energy industry, reaffirmed its commitment to shaping the nation’s energy future. The company’s strategy revolves around three key focus areas: generation decarbonisation, flexible renewable energy adoption, and cross-sectorial electrification. Dato’ Razak stressed that TNB is dedicated to increasing renewable energy capacity, enhancing energy efficiency through smart technologies, expanding solar and emerging renewable technologies, and fostering regional collaboration in green energy exchanges.
The Energy Transition Conference’s Role
Dato’ Razak highlighted that the conference’s discussions are categorised into the sectors of Power, Transportation, and Cities, aligning with TNB’s strategies for cleaner power generation, sustainable cities, and transportation electrification. He underscored the urgency of the energy transition post-COVID-19, given the escalating impact of extreme weather events.
He reiterated that the energy transition is a collaborative effort involving policymakers, suppliers, and customers, and conferences like this serve as platforms for these vital conversations.
