Aspires to be the ASEAN leader in renewables, TNB is actively diversifying into energy sources that are able to meet the needs of the future in a sustainable, reliable and affordable manner.

• Besides the approval from SEDA, any connection to the national grid from any of NEM scheme installations requires prior approval from TNB too.

This national oil and gas company was on record stated its interest in venturing into the renewable energy sector. *Note: further info on this is under the ‘RE initiatives from the private sector’ down below.

Founded in July 2007, MPIA represents the voice of the PV industry.

MGA was formed in 1986 by leading global oil and gas companies including Petronas, Shell, Esso, BP and Caltex as a non-profit organisation, with the purpose of to facilitate the growth of Malaysia’s natural gas sector by positioning natural gas as a clean and efficient source of energy, to drive demand and increase industry participation.

It is the Malaysia chapter established around 2017 under the World Energy Council (WEC) formed in 1923. It is a UN-accredited global energy body. Its mission is to promote the sustainable supply and use of energy for the greatest benefit of all people.

• This Roadmap will strike a balance between environmental targets, affordability/economic benefits and system stability.
• RETR 2035, currently being developed by SEDA in collaboration with industry stakeholders, determines strategies, comprehensive action plans and resources required to transit to the future electricity system and achieve renewable energy targets.
• The outcome of the roadmap is to be part of the 12th Malaysia Plan (2021-2025).

• It is a Government’s initiative to encourage the use of green energy by the consumers. With the implementation of the myGreen+ Scheme, the consumers will have the option to purchase green energy without having to install their own solar rooftop or other renewable energy installations.
• This scheme is offered to all customers and customers may opt to subscribe to purchase the myGreen+ in 100 kWh blocks at the rate of 8 sen/kWh.
• Customers enrolled in the myGreen+ scheme will receive the Green Tariff Certificates upon registering on the scheme.
• Customers that subscribe to myGreen+means that they support environmental friendly and green agenda such as to meet their sustainable targets, offsetting carbon credit, and for green (“eco-friendly”) brand image with the issuance of GTR Certificate by TNB.
• The purchase of green energy supports growth of the renewable energy industry instead of electricity produced from natural gas or coal-fired power plants.

• It is a platform that allows RE generators, retailers and customers to purchase Renewable Energy Certificate (REC) easily.
• Renewable Energy Certificate(REC) represents delivery of 1 MWh of renewable energy to the grid and all associated environmental benefits of displacing 1 MWh of conventional power.

• The limitation with solar as of now is the intermittency drawback (due to sunrise and sunset, clouds).
• When the solar energy quota is increased further in the future, effective storage systems will be necessary to have better penetration and mitigate intermittency issues.
• Potential solution; To resolve this, an efficient storage system with storage batteries needs to be explored. The Government is currently conducting pilot projects with energy storage systems (ESS) to study how effective the storage is in mitigating the intermittency issue.

• Similar to mini hydropower plant limitations, there will be costs incurred in its supply as the plantations are remotely located.
• Potential solution; With particular reference to biomass, Empty Fruit Bunches (EFB), which is essentially waste produced by oil palm plantations, offer increased supply and great value. Other countries mix EFB with fossil fuels in power plants, thus making conventional fuel plants greener.

Renewable energy resources are naturally replenished. In contrast, fossil fuels are a finite resource that takes millions of years to develop and will continue to diminish with use.

Renewable energy sources produce little to no greenhouse gases, has a low carbon footprint and have a relatively low impact on the environment – unlike fossil fuels, which produce pollutants such as greenhouse emissions, affect public health and contribute to climate change.

Conventional energy including nuclear power generation also typically requires either mining, drilling or extraction, often in ecologically sensitive locations.

Although renewable facilities require upfront investments to build, they can then operate at a very low cost. Advances in renewable energy technologies have lowered the cost of solar panels, wind turbines and other sources of green energy, placing the ability to produce electricity in the hands of the people rather than those of oil, gas, coal and utility companies. In the long run, this can help to stabilize energy prices.

The Paris Agreement (PA) 2015 which is a Multilateral Environmental Agreement (MEA) under the United Nations Framework Convention on Climate Change (UNFCC) aims to strengthen the global response to climate change threats, in the context of sustainable development and efforts to eradicate poverty.

Under the PA 2015, Malaysia has committed to reduce Greenhouse Gas (GHG) emissions by 45% by 2030 in relation to our 2005 GDP. The main GHG emission contributors in Malaysia are the energy industries, transport, manufacturing industries and industrial processes, waste and the agriculture sector.

A government ministry with one of its missions to manage energy resources strategically in order to optimize renewable energy and energy efficiency services as well as to ensure continuous supply of electricity that is affordable and sustainable, MESTECC main focuses include;

• Green and Efficient Energy Sector
• Environmental Pollution-free and Resistance to Climate Change
• Wealth Creation Through Science and Technology

One of the key implementing agencies under the purview of MESTECC, SEDA is a statutory body formed under the Sustainable Energy Development Authority Act 2011 [Act 726]. 

• With the vision of promoting the deployment of sustainable energy measures as part of the solutions towards achieving energy security and autonomy, the main role of SEDA is to administer and manage the implementation of the feed-in tariff mechanism which is mandated under the Renewable Energy Act 2011 [Act 725].

Established on 1 May 2001 under the Energy Commission Act 2001, the Commission is the statutory body entrusted with regulating the electricity and piped gas supply industry in Peninsular Malaysia and Sabah.

• Under the Energy Commission Act 2001, one of the main functions of the Energy Commission is to promote the use of renewable energy and the conservation of non-renewable energy.

Operating under the purview of the Energy Comission, MyPOWER stands for the Malaysia Programme for Power Electricity Reform, which is a special task force that aims to accomplish three agendas: customer empowerment, industry efficiency, and future-proofing the industry structure and regulations.

• In terms of efficiency, MyPOWER explores green initiatives such as solar photovoltaic, biomass, biofuel, coal generation technology, storage systems and smart meters.

Another agency under the purview of MESTECC, that was established in 2009 with the mandate to spearhead the development and promotion of green technology as a strategic engine for socio-economic growth in line with Green Technology Master Plan 2017-2030. 

• One of its functions is to provide consultancy and monitoring of solar PV projects, as well as providing financing scheme and tax incentives related to green technology investment to industry players in Malaysia.

Established in 2014, Yayasan Hijau Malaysia or better known as YaHijau is another agency of MESTECC that aims at promoting and educating youth on the importance of green technology and its benefits towards sustainable living through various programmes and activities conducted under the organization.

• YaHijau also plays a pivotal role in promoting and encouraging the participation of Corporate Entities, Communities and the general public towards increasing green living practices in Malaysia through Corporate Social Responsibility (CSR) initiatives and sponsorships whilst creating awareness and call for action on the importance of having a greener lifestyle.

Aspires to be the ASEAN leader in renewables, TNB is actively diversifying into energy sources that are able to meet the needs of the future in a sustainable, reliable and affordable manner.

• Besides the approval from SEDA, any connection to the national grid from any of NEM scheme installations requires prior approval from TNB too.

This national oil and gas company was on record stated its interest in venturing into the renewable energy sector. *Note: further info on this is under the ‘RE initiatives from the private sector’ down below.

Founded in July 2007, MPIA represents the voice of the PV industry.

MGA was formed in 1986 by leading global oil and gas companies including Petronas, Shell, Esso, BP and Caltex as a non-profit organisation, with the purpose of to facilitate the growth of Malaysia’s natural gas sector by positioning natural gas as a clean and efficient source of energy, to drive demand and increase industry participation.

It is the Malaysia chapter established around 2017 under the World Energy Council (WEC) formed in 1923. It is a UN-accredited global energy body. Its mission is to promote the sustainable supply and use of energy for the greatest benefit of all people.

• This scheme is also a solution offered by GSparx SDN BHD (a wholly-owned TNB subsidiary), a green retail business that installs solar PV systems on home rooftops.
• NEM scheme generators enjoy savings in the electricity bill by displacing energy consumed from the grid with energy generated from said solar PV installations. Any excess of electricity consumption generated can be sold to TNB.
• Previously, NEM scheme generators have to pay MYR0.50 per kilowatt-hour for electricity but receive only MYR0.31 in return for their surplus energy.
• But beginning 1 January 2019, excess electricity generated by rooftop solar installations injected back to the grid would offset the intake from utility providers on a one-to-one basis, making the proposition of installing rooftop solar far more financially attractive.

• An extended initiative to the NEM scheme, SARE is also known as the solar leasing programme.
• Previously, anyone who is interested in participating in the NEM programme had to purchase and install their own solar panels, which was cost-prohibitive.
• However, under SARE that comes into effect beginning 1 January 2019, it enables a third-party investor to finance the installation of the panels in return for a fee, ensuring there is no upfront cost for the premise owner. But this SARE is only eligible to businesses and government entities (non-residential customers) in Peninsula Malaysia.

• Commercial businesses could participate in a competitive bidding programme to build LSS plant / solar farm, where solar energy generated from it would be connected to the national grid and sell its energy to TNB under a power purchase agreement.
• It’s basically akin to NEM but at a massive industrial scale.
• The government had recently in August 2019 concluded the third cycle of LSS (known as the LSS3) where RM2 billion worth of projects were tendered out to increase electricity generation from renewable energy (RE). The projects are in addition to ongoing LSS projects to produce 958MW of electricity between the end of this year until 2020.

• This Roadmap will strike a balance between environmental targets, affordability/economic benefits and system stability.
• RETR 2035, currently being developed by SEDA in collaboration with industry stakeholders, determines strategies, comprehensive action plans and resources required to transit to the future electricity system and achieve renewable energy targets.
• The outcome of the roadmap is to be part of the 12th Malaysia Plan (2021-2025).

• It is a Government’s initiative to encourage the use of green energy by the consumers. With the implementation of the myGreen+ Scheme, the consumers will have the option to purchase green energy without having to install their own solar rooftop or other renewable energy installations.
• This scheme is offered to all customers and customers may opt to subscribe to purchase the myGreen+ in 100 kWh blocks at the rate of 8 sen/kWh.
• Customers enrolled in the myGreen+ scheme will receive the Green Tariff Certificates upon registering on the scheme.
• Customers that subscribe to myGreen+means that they support environmental friendly and green agenda such as to meet their sustainable targets, offsetting carbon credit, and for green (“eco-friendly”) brand image with the issuance of GTR Certificate by TNB.
• The purchase of green energy supports growth of the renewable energy industry instead of electricity produced from natural gas or coal-fired power plants.

• It is a platform that allows RE generators, retailers and customers to purchase Renewable Energy Certificate (REC) easily.
• Renewable Energy Certificate(REC) represents delivery of 1 MWh of renewable energy to the grid and all associated environmental benefits of displacing 1 MWh of conventional power.

• The purpose of GTFS 2.0 is to finance investment for the production of green products, the utilization of green technology and to finance investment or assets related to an energy-efficient project and/ or energy performance contracting.
• The financing size is up to RM100 million for a tenure of up to 15 years.
• The GTFS 2.0 funds come from the Participating Financial Institutions (PFI’s) with the government subsidy for a rebate of 2% per annum on interest/ profit rate and 60% loan guarantee.

• Malaysian companies that undertake green technology project will be allowed to claim GITA.
• The allowance can be offset against 70% of statutory income in the year of assessment.

• GITA Services is given to qualifying companies which provides green technology services which have been verified by GreenTech Malaysia and been listed under the MyHIJAU Directory.

• The rate of incentive is 100% of statutory income in the year of assessment.

• Malaysia will need RM33 billion worth of investments to boost the renewable energy (RE) part of the country’s energy generation mix from the 2% recorded in 2018 to 20% by 2025.
• The investment needed to reach the RE target, which excludes power generated from large hydropower generators of more than 100 megawatts (mw), will not come solely from the government, but also from the public-private partnerships as well as private financing.
• Potential solution; As of September 2019, The government is in the midst of finalising the green financing plan in order to meet the financial goals pursuant to the six-month study on green financing plan done the Securities Commission of Malaysia.

• The limitation with solar as of now is the intermittency drawback (due to sunrise and sunset, clouds).
• When the solar energy quota is increased further in the future, effective storage systems will be necessary to have better penetration and mitigate intermittency issues.
• Potential solution; To resolve this, an efficient storage system with storage batteries needs to be explored. The Government is currently conducting pilot projects with energy storage systems (ESS) to study how effective the storage is in mitigating the intermittency issue.

• Anything more than 100 MW for hydro will not be counted towards RE.
• As Malaysia is mainly looking at small hydro technology, it does come with its limitations. The drawback is that the hydro potential is located far off from where the demand is concentrated.
• Potential solution; To enhance the supply according to demand, funds need to be spent towards connecting the mini-hydro to the grid system.

• Similar to mini hydropower plant limitations, there will be costs incurred in its supply as the plantations are remotely located.
• Potential solution; With particular reference to biomass, Empty Fruit Bunches (EFB), which is essentially waste produced by oil palm plantations, offer increased supply and great value. Other countries mix EFB with fossil fuels in power plants, thus making conventional fuel plants greener.