The Malaysian government is taking significant steps to develop renewable energy (RE) programs based on a “willing buyer, willing seller basis” to encourage private sector participation.
In addition to lifting the ban on RE exports, the government aims to attract local and international investment in the energy industry, not only to ensure energy security but also to stimulate economic growth. Natural Resources, Environment and Climate Change Minister, Nik Nazmi Nik Ahmad, made these announcements during the Asean Green Hydrogen Conference 2023.
The growing population and expanding economy in Malaysia have led to an increasing energy demand, primarily driven by the industrial sector. Between 2010 and 2018, energy demand rose by an average of 6% per annum, and over a more extended period between 2000 and 2018, it increased by 4% per annum. Recognizing the importance of renewable energy in maintaining competitiveness and attracting advanced industries, Malaysia is committed to enhancing its renewable energy capacity.
Malaysia, accounting for 0.2% of the global bunkering industry, has the potential to become a hub for hydrogen supply for bunkering. Its strategic location along one of the busiest international shipping routes makes it well-positioned to play a significant role in this sector. With the lifting of the ban on RE exports and the implementation of programs based on a “willing buyer, willing seller basis,” the government aims to foster private sector involvement in renewable energy initiatives.
The state of Sarawak has also set ambitious goals in green hydrogen production, aiming for large-scale commercialization in the global market by 2027. Sarawak’s success story began with a pilot project involving a solar-hydrogen hybrid power installation in the Long Loyang sub-district. This project provided uninterrupted power to a rural clinic serving a population of 2,000 people. The government sees this as an encouraging development and believes that other states should follow Sarawak’s example to accelerate the transition to renewable energy.
By embracing renewable energy and actively engaging the private sector, Malaysia aims to achieve energy sustainability, reduce greenhouse gas emissions, and contribute to global efforts in combating climate change. The government’s commitment to developing RE programs on a “willing buyer, willing seller basis” demonstrates its dedication to creating a conducive environment for private sector participation in the renewable energy sector.