Malaysia’s Tenaga National could be legally required to buy renewable energy under new laws being drawn up by the Government, Datuk Seri Najib Tun Razak said.
The Prime Minister said the move would increase the availability of renewable energy in Malaysia by 100-fold from the current 50MW to 2,000MW by 2020.
He said one of the mechanisms the Government was looking into under the new law was “feed-in tariffs.”
Feed-in tariffs makes it compulsory for regional or national utility companies like Tenaga Nasional Bhd to buy renewable electricity such as electricity generated from solar, thermal, wind, wave or tidal power, biomass, hydropower and geothermal power from eligible participants.
“Currently, we are in the process of instituting a renewable energy law and one of the mechanisms we are looking into is feed-in tariffs to promote the usage of this type of energy,” he said in his keynote address at the World Future Energy Summit here yesterday.
Najib said the Government already had the Small Renewable Energy Programme, which provided for a higher purchasing price for electricity generated under this initiative by the grid operator.
“We have more than enough sunlight in Malaysia and increased use of solar power will be promoted aggressively,” he said, referring to the Suria 1000 programme which was launched in 2007.
The Suria 1000 programme allows houses and commercial buildings to become part of the country’s renewable energy initiative by producing energy through solar power.
Najib said a study has been commissioned to restructure and realign the Malaysian electricity sector.
“The findings will help lay the foundation for a more efficient industry through market mechanisms and liberalisation,” he said.
Najib pointed out that he had set up the Energy, Green Technology and Water Ministry last year to spearhead Malaysia’s transformation into a green nation.
“We will be looking at four main sectors to implement green technologies, namely energy, transport, buildings and water,” he said.
Najib said for transportation, the Government aimed at reducing carbon footprint by enhancing public transport.
He said energy efficient buildings have been promoted for some time and the introduction of the Green Building Index would hopefully see more buildings going green in Malaysia soon.
Separately, Masdar, an Abu Dhabi firm focused on renewable energy and sustainability, and 1Malaysia Development Berhad, have signed a cooperation agreement to explore clean technology projects and investments, including the possibility of building Malaysia’s first carbon-neutral city.
Masdar and 1MDB also intend to cooperate and invest in carbon reduction projects, under the Kyoto Protocol’s Clean Development Mechanism and clean technology venture capital. If fully implemented the cooperation agreement would lead to the development of new catalytic projects, with an estimated value of USD100 million.
The agreement with Masdar, which was signed during Malaysian Prime Minister, YAB Dato’ Sri Mohd Najib Tun Haji Abdul Razak’s visit to Abu Dhabi, will further boost Malaysia’s ongoing efforts to embrace world-class sustainable practices and clean technology.
It was among several strategic joint agreements signed between Malaysia and the UAE - Dato’ Sri Mohd Najib and H.H. General Sheikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, witnessed the signing.
Masdar Chief Executive Officer, Dr. Sultan Ahmed Al Jaber, said: “Masdar is committed to building strategic partnerships and creating worldwide networks in the push for new low carbon energy technologies and clean, sustainable ways of living.”
1MDB Chief Executive Officer Shahrol Halmi added: “Clean technology is an increasingly important sector for the future economic development of Malaysia. The partnership with Masdar will help expose Malaysia and 1MDB to world-class capabilities in sustainable development.”
Shahrol did not rule out the possibility of 1MDB building Malaysia’s first carbon-neutral city, “It is our intent to explore and evaluate business opportunities relating to the development of an environmentally friendly carbon-neutral city in Malaysia,” he concluded.
Established by the Government of Abu Dhabi, the capital of the UAE, in 2006, Masdar is a wide ranging, multifaceted renewable energy initiative that integrates the full renewable and clean technology life-cycle – from research to commercial deployment – with the aim of creating commercially scalable renewable and clean energy solutions.
