Malaysia looking to export green electricity to Indonesia’s new capital


Malaysia views Indonesia’s Nusantara Capital City project as a potential export market for exporting its green electricity, while aiming to become the renewable energy hub of ASEAN.

Nik Nazmi Nik Ahmad, Malaysia's Minister of Natural Resources, Environment and Climate Change, told The Jakarta Post on Aug 23 that he anticipates Sarawak to undertake a significant role in supplying green electricity to Indonesia’s new capital, citing the state’s abundant renewable energy sources.

“I think Sarawak will play a big role in that. I mean, it has a lot of hydroelectricity resources. In that way, it’s a bit similar to Laos with the mountains,” he said.

During the recent 41st ASEAN Ministers on Energy Meeting and ASEAN Energy Business Forum 2023, he also stated that cross-border renewable energy trade is a crucial factor in facilitating Malaysia’s development of its battery energy storage sector.

“At present, it is still difficult to make it economical in Malaysia, but I think the moment you allow cross border, then it would be feasible,” he said on the sideline.

He said battery energy storage is a crucial component in increasing the country’s renewable energy capacity. He also mentioned that Malaysia is keen to become a hub for renewables within ASEAN region. 

“We realize that in the ASEAN power grid, Malaysia will be right smack in the center of it, so that’s why I think we can be a hub for renewable energy,” he said.

In May, the Malaysian government lifted the ban on exports of renewable energy, allowing the trading of excess renewables with neighboring countries as part of a policy review to enhance its green energy sector.

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