rss

Latest News

All the latest news from Energy & Resources Law

Untitled design.png

Recent updates from Malaysia and Southeast Asia

Acknowledging the need in its country, the Government of Malaysia has recently introduced several new programs that aim to improve low carbon and renewable energy generation in the country. 

The Prime Minister Anthony Albanese has also announced that Australia will establish a $2b finance facility to fund green energy transition and infrastructure development in Southeast Asia. The fund will be managed by Export Finance Australia and is intended to encourage trade and investment in clean energy transition and infrastructure development projects in the region. It is estimated that Southeast Asia will need an additional 454 GW of capacity by 2050, a transition that could employ more than 5 million people. 
Acknowledging the need in its country, the Government of Malaysia has recently introduced several new programs that aim to improve low carbon and renewable energy generation in the country. 

The Low Carbon Energy Generation Program (LCEGP) was introduced by the Ministry of Energy Transition and Water Transformation (known as PETRA) with the intention of improving energy reliability in the country and establishing new renewable power generation sources. The LCEGP will provide assistance to power generation projects that leverage low-carbon power generation like small hydro, biogas and hydrogen. The quota for this program is 400 MW and will be allocated on a first come, first served basis. To be eligible the projects will need to be registered under the New Enhanced Dispatch Arrangement. 

PETRA has also introduced a new incentive program to encourage the installation of solar photovoltaic systems by consumers called the Solar for Rakyat Incentive Scheme (SolaRIS). First-time applicants to the Net Energy Metering programme can receive a rebate of RM1,000/kWac  up to a maximum or RM4,000. Rebates will be offered on a first come first served basis potentially up to the end of December 2024, with an additional quota of 100MW for the Net Energy Metering programme (this is in addition to quota increases announced in January 2024). If approved, consumers will need to install operational systems by 31 March 2025. SolaRIS will be administered by Tenaga Nasional Berhad.

The Malaysian Energy Commission has also announced a new Large Scale Solar competitive bidding process known as LSS PETRA. The process will offer 2,000MW of capacity in four separate packages. Three of the packages are for rooftop or ground-mounted solar projects while the fourth is for floating solar projects. The bidder criteria varies, with one package requiring 100% Bumpiputera equity, while another requires 51% Bumpiputera equity and the final two require a minimum of 51% local Malaysian equity. The projects are scheduled to commence operation by 2026. 

These initiatives are a positive step towards increasing the renewable energy capacity of Malaysia and will assist in meeting its objective of achieving net-zero emissions by 2050. 
 

Showing 0 Comment



Comments are closed.
Subscribe to Newsletter