Malaysia sets a new goal of 18% clean energy generation by 2030

This article first appeared on Open Gov. 

According to a recent report, The Energy, Science, Technology, Environment and Climate Change Ministry has set a target of 18% of the country’s electricity to be generated from renewable sources by 2030, an increase from 2% currently.

The Minister of Energy, Technology, Science, Climate Change and Environment said that her ministry is having a series of meeting to ensure the national grid is prepared to cater for this renewable energy generation mix, as well as to study the policies to meet its target.

Leaders are confident that the target is definitely achievable by 2030. However, they want to stress that Malaysia must not take priority over energy affordability only for the renewable energy (RE) target, it must be a balance between how affordable the electricity versus its adoption of RE, as noted in a press conference after officiating the 22nd Conference of the Electric Power Supply Industry (Cepsi) 2018 on 18 September 2018.

The Ministry’s leader is confident that Malaysia’s Electricity Supply Industry (ESI) transformation programme such as future generation — RE and green energy, a grid of the future — that enhance customer experience initiatives, will propel the country, going forward.

The view is to capitalise on future technological innovations, including industrial revolution 4.0 elements while retaining customers’ confidence through digitalisation of services and improving customer experiences.

RE usually depends more on technology disruption that will come in the next few years.

The Ministry believes that RE is in the present, and although it has not reached great parity in electricity storage together with technology, the leadership believes that in a very short time, it will reach great parity.

How quick the technology evolves will decide on when whether the 20% target will be achieved. However, the Ministry affirmed its commitment to the cause.

That means, early adoption of renewable energy will help the ministry and the industry to be more competitive, and help it to be a first mover in the region to not only supply electricity in Malaysia, but also empower [us] to do business outside of Malaysia.

The Minister believes this target will benefit the country from the spill-over effect of RE development, through jobs and wealth creation, multiplier effect, and a more sustainable management of energy resources.

Meanwhile, the ministry’s leader assured electricity tariff is unlikely to be raised, following the government’s intention to reactivate the Malaysia Programme Officer for Power Electricity Reform (MyPower) agency for at least three years under the Malaysia Energy Supply Industry 2.0 (MESI 2.0) programme.

There will be a series of reforms due to the market structure for the electricity supply industry as it is a competitive-based industry.

The Minister believes that the government is there to make sure everyone has a fair chance in life. Hence, depoliticising the electricity supply industry takes a long time. After three years, the leader does not think it will be a final product.

The Ministry will have more than MESI 2.0 and one cannot do a reform by abruptly changing everything, especially [because] power industry and electricity are big in the share market.

Thus, it was explained that the government is going to introduce reform 3.0 and more, to make it more efficient and competitive across the value chain but not shock.

Currently, a major determinant of electricity tariff is fuel prices, which depend on the global fuel price in addition to system cost.

This is RE is more than just being green; it is to make citizens’ tariffs much more predictable, of which electricity right now is hugely dependent on the global fuel price.

After the reforms, citizens can expect a transparent and efficient market structure with more cost reflective tariff.

Post a comment