September 3, 2019 Read More →

Malaysia sets 20% renewable energy goal by 2025

Malaymail:

The government is seeking to increase the country’s target of renewable energy generation to 20 per cent in the next six years, said Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin.

She said this will be accomplished via the Malaysia Energy Supply Industry 2.0 (MESI 2.0) plan which will be launched sometime this month. “The idea is for a more competitive and diversified mix of electricity generation, one that is also more transparent for the industry and consumers,” Yeo said during the 5-in-1 Power Energy Series exhibition at the Malaysia International Trade and Exhibition Centre.

She said the plan will enable green energy trading through a grid, and that it is not compulsory for renewable energy companies to sell electricity to the national electric utility company Tenaga Nasional Berhad.

The minister explained the bidding is for 500-megawatt generation, where each bidder has a maximum of 100 megawatts. “The first four projects amount to 365 megawatts out of 500 megawatts. The bidding price is lower than the cost of gas generation, standing at 23.22 cents.”

Yeo compared the price of solar energy for today to several years back, saying at the time when the second round of LSS was being conducted, the reference price stood at 32 cents. “Today we can reach as low as 17.77 cents, a 45 per cent reduction in just a few years.”

In order to meet the target of 20 per cent renewable energy generation, Yeo said approximately RM33 billion of investment is required. “Some of it will come from the government, some from private-public partnership, others will come from private financing.”

More: Yeo: Malaysia aiming for 20pc renewable energy use by 2025

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