Prime Minister Datuk Seri Anwar Ibrahim today announced Phase Two of the National Energy Transition Roadmap (NETR), which outlines the remaining activities to position Malaysia as a regional leader in energy transition and renewable energy (RE).

Anwar, who is also the Finance Minister, stated that the government had identified six energy transformation levers, ten flagship projects, and 50 initiatives as part of the overall NETR series.

Among other things, the government will put aside RM2 billion as a seed investment for the National Energy Transition Facility.

“With this facility, catalytic blended finance will be able to ensure a continuous flow of financial resources towards energy transition projects that are marginally bankable or yield below-market returns.”

“For example, investment in the electric vehicle (EV) value chain, hydrogen, and carbon capture, utilisation, and storage (CCUS) technologies,” Anwar stated today at the NETR Phase Two launch ceremony.

Economy Minister Rafizi Ramli was present, as was Natural Resources, Environment, and Climate Change Minister Nik Nazmi Nik Ahmad.

This has the potential to resolve the climate change crisis

– Anwar Ibrahim

Anwar noted that the allotment was critical owing to the current state of the country’s decarbonization technologies, which he described as “immature.”

He stated that the country’s development was dependent on alternative energy sources as well as strong regional and international engagement.

“Because financing is the most difficult challenge in energy transition, it is estimated that an investment of at least RM1.2 trillion is required between 2023 and 2050 to enable responsible energy transition.”

“Within this decade alone, the government requires between RM60 billion and RM90 billion to be allocated for critical projects such as public transport expansion, grid infrastructure strengthening, and human capital reskilling,” he said.

Anwar also announced the creation of a renewable energy exchange, which will be implemented next year and would serve as a market aggregator, facilitating price discovery and the monetisation of excess power.

“As one of the energy transition levers, energy efficiency provides effective long-term solutions for managing our energy consumption and thus reducing carbon emissions.”

“The government will launch a major retrofit programme to improve infrastructure.”

Government buildings’ energy efficiency. An energy service companies (ESCOs) platform would be formed in this respect to connect private ESCOs, primarily SMEs, with government projects.

“The platform’s central role would be to serve as an intermediary that pools government building retrofitting projects and encourages public-private coordination in the ESCO market,” he explained.

Anwar stated that the government would activate the National Energy Council to ensure holistic energy planning and policy development, as well as to monitor the success of the NETR.

“I personally see to it that the council functions as it is mandated,” he stated.

The NETR, according to Anwar, will expedite and steer the nation’s energy transition measures on a bigger scale, ensuring success in transitioning from a traditional fossil fuel-based economy to a high-value, green, and sustainable one.

“The primary goal is to change how Malaysia generates energy by hastening the energy transition.”

“This has the potential to resolve the climate change crisis.” With the execution of NETR programmes, Malaysia is poised to become a regional leader in the energy transition and RE industry,” he stated.

Anwar stated that Malaysia recognises the need of renewable energy sources.

He said that in the early 1990s, RE was designated as the fifth fuel under the National Energy Policy.

“Today’s renewable energy sources are solar, mini hydro, biomass, and biogas.” Malaysia’s renewable energy supply is presently at 25%, and we are on target to source 31% of its power capacity from renewables by 2025 and 40% by 2040.

“The NETR details how we will achieve these objectives,” he explained.

While Malaysia’s embrace of sustainability is gaining traction, Anwar believes that more attention should be placed on ensuring that the country can provide inexpensive energy and energy security.

“We believe the NETR will succeed in its balancing act.” “NETR will drive the creation of high-paying job opportunities and increase domestic and foreign investment participation, all while ensuring Malaysia’s green energy supply remains stable,” he said.

Earlier in his speech, Nik Nazmi described NETR as Malaysia’s overarching macro policy document covering the country’s energy transformation pathway for the power, transportation, industrial, and oil and gas sectors.

info source – New Straits Times