KUALA LUMPUR: Malaysia’s energy sector registered significant growth this year, driven by incentives that catalysed players to undertake new green energy ventures, particularly solar systems.
The solar industry stood out, thanks to the Solar For Rakyat Incentives Scheme (SolaRIS), which provides rebates of up to RM4,000 for new Net Energy Metering (NEM) applications.
This led to over 667 NEM Rakyat consumers installing solar photovoltaic (PV) systems as of July 2024, with daily applications increasing from 100 to 150.
It is a positive response from the public, aligning with the National Energy Transition Roadmap (NETR).
Malaysia is planning to explore renewable energy sources such as hydrogen and nuclear to achieve net-zero carbon emissions by 2050.
For instance, small modular reactors make nuclear energy more viable by offering safer, cost-effective solutions with less radioactive waste and stable long-term costs.
The government also aims to produce two million tonnes of hydrogen annually, increasing to 16 million tonnes by 2050. This will support decarbonisation in sectors such as power generation and transportation, reducing reliance on fossil fuels.
The energy sector is expected to grow even more vibrant next year, as the government plans to adopt new technologies and enhance existing incentives such as NEM.
In the solar sector, Budget 2025’s allocation for NETR will be raised to RM300 million from RM100 million this year.
Additional incentives will encourage more premises to adopt solar photovoltaic installations, with up to RM70 million in e-rebates allocated to promote the purchase of energy-efficient electrical equipment.
The excitement could stem from the government being more open to the use of new technologies for electricity generation to achieve the net-zero carbon emissions target by 2050.
These technologies include battery energy storage, pumped hydro storage, carbon capture, nuclear technology, and both small and large-scale reactors.
On its part, the Ministry of Energy Transition and Water Transformation (PETRA) will intensify the implementation of renewable energy (RE) programmes.
Among them are the Feed-in Tariff (FiT) programme, NEM, Self-Consumption (SELCO), Corporate Green Power Programme (CGPP), and Clean Renewable Energy Supply (CRES), to reach the RE installed capacity target of 70 per cent.
As Malaysia assumes the ASEAN chairmanship in 2025, the country is committed to finalising the ASEAN Power Grid (APG) strategic initiative next year.
APG is not just about connecting energy systems across land and underwater but also about positioning the region as a green energy hub capable of attracting international investment.
It is encouraging to note that, to date, all member states have essentially reached an agreement on the APG.
To this end, the government will look at how TNB can play a role in realising the APG initiative, with the aim of making the country and the region the main energy hub of the future.
The government is aware of the significant investment required and is considering ways for TNB to collaborate with other entities to ensure the APG’s success.
TNB, tasked with transitioning from coal to renewable energy, has conducted extensive research to ensure the transition is smooth and effective.
TNB’s subsidiary, Sabah Electricity Sdn Bhd, is reportedly facing financial difficulties and requires federal government support to ensure a sustainable power supply.
Its chairman, Datuk Seri Wilfred Madius Tangau, stated that without federal support, Sabah risks blackouts as early as January 2025.
Wilfred said the company’s cash flow is in deficit and, without immediate assistance, will be unable to pay Independent Power Producers (IPPs) and fuel suppliers. – BERNAMA
