Deputy Prime Minister and Energy Transition And Water Transformation Minister (PETRA) Datuk Seri Fadillah Yusof underscored the Government’s stance on welcoming investments and partnerships aimed at exploring and advancing Renewable Energy (RE) initiatives in today’s Dewan Rakyat sitting.
However, he clarified that the implementation of the collaboration between MASDAR and the Malaysian Investment Development Authority (MIDA) is a commercial arrangement between the two entities, with planning and execution left to their discretion.
In alignment with regulatory standards, Fadillah emphasised the importance of transparent and fair approval processes for RE projects.
“The Government adheres to the policy stipulation that approval for the development of RE projects in this country must be carried out transparently, fairly, and based on current regulatory determinations.” Fadillah said in response to a query raised by Yeo Bee Yin [Puchong], the Transition Energy and Water Transformation Minister addressed the Ministry’s collaboration with MASDAR, a UAE company, for the development of up to 10 GW of renewable energy (RE) projects in Malaysia.
Therefore, MASDAR’s investment, like other renewable energy developers in this country, needs to be done through participation in existing RE programs that are ongoing and will be implemented as follows:
(i) Large Scale Solar Program for utility-scale solar development;
(ii) Feed-in Tariff Program for non-solar sources development;
(iii) New Enhanced Dispatch Arrangement Program for non-solar sources development; and
(iv) Rooftop Solar Programme for solar installation on building premises.
Additionally, the Government is in the process of drafting third-party access (TPA) regulations to enable developers to supply RE electricity directly to consumers via utility company grids.
Regarding off-takers for the RE generated, Fadillah explained that it would depend on the type of RE program involved. “For instance, if a company participates in the Large Scale Solar (LSS) program, then the off-taker of the energy would be the utility or TNB.
If an investor engages in the rooftop solar program, then the energy off-taker under this program would be the electricity consumer themselves.
And if a company participates in the future TPA program, then corporate users with contracts with the developer would be the off-taker for the generated RE.” he said.
Fadillah then reiterated that the Government’s approach to new capacity additions by MASDAR and other developers would prioritise thorough planning and development of electricity generation, considering economic, technical, and regulatory aspects.
“This approach will ensure that the integration of intermittent solar sources will not compromise the capacity and safety of the grid system and infrastructure, providing opportunities for fair and equitable competition while safeguarding the interests of local RE industry players.
It also ensures that the supply of electricity, including from RE sources, is at competitive rates and reasonable tariffs for all electricity consumers.” he added.
