Malaysia sets new goal of 20% clean energy generation by 2030

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KUALA LUMPUR (Sept 18): The Energy, Science, Technology, Environment and Climate Change Ministry has set a target of 20% of the country's electricity to be generated from renewable sources by 2030, an increase from 2% currently.

Minister Yeo Bee Yin said 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.

“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,” she told a press conference after officiating the 22nd Conference of the Electric Power Supply Industry (Cepsi) 2018 here today.

Yeo is confident Malaysia’s Electricity Supply Industry (ESI) transformation programme such as future generation — RE and green energy, grid of the future — that enhance customer experience initiatives, will 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 great parity.

“How quick the technology evolves will decide on when we can achieve our 20% target, but we are very committed,” she said.

“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, multiplier effect, and a more sustainable management of energy resources.

Meanwhile, Yeo 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. 

She said there will be a series of reforms due to the 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.

“We will have more than MESI 2.0 and you cannot do a reform by abruptly changing everything, especially [because] power industry and electricity is big in share market. We are going to introduce reform 3.0 and more, to make it more efficient and competitive across the value chain but not shock,” she explained.

Currently, a major determinant of electricity tariff is fuel prices, which depend on 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.

“After the reforms, you can expect a transparent and efficient market structure with more cost reflective tariff,” she added.