In Malaysia, the Energy, Science, Technology, Environment and Climate Change Ministry has set a target of generating 20% of the country’s total electricity from renewables by 2030.
Minister Yeo Bee Yin said her ministry is having a series of meetings 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.
“I am very confident (that) the target is definitely achievable by 2030. However, I want to stress that we 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 our adoption of RE.”
Yeo is confident Malaysia’s Electricity Supply Industry (ESI) transformation programme such as future generation, will enhance customer experience initiatives and propel the country, going forward.
“Our 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,” she said.
RE usually depends more on technology disruption that will come in the next few years, Yeo added.
“We believe that RE is in the present, and although we have not reached great parity in electricity storage together with technology, we believe that in a very short time, we will reach … parity.
“That means, early adoption of renewable energy will help us and the industry to be more competitive, and help us 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,” Yeo added.
Yeo believes this target will benefit the country from the spillover effect of RE development, through jobs and wealth creation ultimately ensuring sustainable management of energy resources.
Yeo emphasised that the electricity tariff is unlikely to be raised, following the government’s intention to reactivate the Malaysia Programme Officer for Power Electricity Reform.
She said there will be a series of reforms due to shift he market structure for the electricity supply industry. She added it is a competitive-based industry.
“I believe 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, I do not think it will be a final product”.
Currently, a major determinant of electricity tariff is fuel prices, which depend on the global fuel price in addition to system cost, Yeo said.
“That’s why RE is more than just being green; it is to make your tariff much more predictable, of which our electricity right now is hugely dependent on the global fuel price”.