Malaysia plans to develop Southeast Asia’s biggest solar hybrid facility to achieve its 70% goal of renewable energy capacity by 2050, said Economy Minister Rafizi Ramli.
According to Rafizi, Sovereign wealth fund Khazanah Nasional Bhd. will lead the development of the solar hybrid plant and has attracted global investments totaling 6 billion ringgit ($1.3 billion). It will be among 10 projects worth 25 billion ringgit that he unveiled under the National Energy Transition Roadmap on July 27.
“NETR is the administration’s effort to change the economics of renewable energy so that we could rapidly scale up our installed capacity with the right infrastructure and technology,” said Rafizi.
According to the government, Tenaga Nasional Bhd., Sime Darby Property, Malakoff Corp and Petronas will also be part of the project.
In May, Malaysia raised the renewable energy target to 70% of the total generation capacity by 2050, from 40%. The target requires 637 billion ringgit in investments. According to the Malaysian Investment Development Authority, the country’s renewable energy capacity stood at 25% as of the end of March.
Malaysia recently lifted an export ban on renewal energy, aiming to position itself as a regional leader in the area. This move allows local companies to develop capacity at scale and meet regional demands.
Prime Minister Anwar Ibrahim previously called on more funding for the developing world to help countries deliver their green goals.
The energy transition plan for Malaysia includes several key points. Frist, in the fourth quarter of 2023, there will be a bill in parliament aimed at regulating energy-intensive users, buildings and products. Second, Tenaga will co-develop solar parks in several states and build hydro dam reservoirs.
Third, Malakoff will burn biomass along with coal at its existing Tanjung Bin power plant. Forth, Sime Darby Property will construct a 4.5 MW solar project across 450 homes. Lastly, Petronas plans to develop a bio-refinery in Johor states. These reflect the country's commitment to promoting renewable energy and achieving sustainable development goals.