In the renewables race, how can Malaysia come out on top?

 

Putrajaya is set to launch a National Energy Policy to guide Malaysia’s transition to a low-carbon future. (Bernama pic)

PETALING JAYA: As countries begin to implement environmental protectionist policies, and with regional neighbours making strides in their green energy industries, Malaysia’s lack of progress in the space stands out.

FMT takes a closer look at Malaysia’s renewable energy situation and the way forward for the country.

What are renewables?

Renewables are forms of energy that do not require the burning of fossil fuels like petrol, diesel and coal which take eons to regenerate.

Forms of renewable sources of energy produced in Malaysia currently include hydroelectricity, solar energy and biofuels, which are made entirely of biological material or are a blend including fossil fuels.

Why are renewables important?

Oil reserves are not limitless and as supply runs out, prices will skyrocket. More importantly, fossil fuels have a huge impact on climate change, and Malaysia is not exempt from these consequences.

Flooding and heat waves experienced in Malaysia could worsen if climate change, brought upon by the rise in carbon emissions, is not addressed.

A failure to change course could also have economic consequences. The European Union already has plans to introduce tariffs on importers with high carbon emissions, and consumers are increasingly looking for more eco-conscious products.

If Malaysian companies do not adapt or do not have the resources to do so, they could be left behind as other countries modernise their energy systems.

What is Malaysia doing?

Putrajaya is set to launch a National Energy Policy to guide Malaysia’s transition to a low-carbon future. Presently, renewable energy accounts for just 18% of the country’s energy mix.

According to the Global Carbon Project, Malaysia had the second highest carbon dioxide emissions per capita in Asean as of 2019, with 7.83 tonnes, behind only Brunei.

Furthermore, on Monday, the United Nations’ Intergovernmental Panel on Climate Change (IPCC) released a nearly 4,000-page report with one clear message: the world is warming at a rate not seen in 2,000 years, largely driven by emissions and fossil fuel reliance. It concluded that the effects of climate change will only get worse if the world fails to make immediate collective changes.

Who are Malaysia’s renewables players?

Companies like Tenaga Nasional Bhd, Sime Darby Plantations and Ipmuda Berhad have all begun embracing renewable energy of late and pivoting their business operations to adapt to the changing landscape.

This is in addition to newer, dedicated players like Solarvest Holdings Bhd and SOLS Energy Sdn Bhd.

In the case of Ipmuda Berhad, who were previously in the construction materials industry, the shift to renewable energy was an obvious one.

“Renewable energy is the future. It’s cleaner and more efficient than fossil fuels, and this translates to cost savings,” said Ipmuda executive chairman Beroz Mirdin.

“I envisage this to improve even more as fossil fuel continues to deplete over time. As a country, there is no other option aside from embracing it and doing its part to ensure a more sustainable future for the next generations.”

The group now has assets to produce both solar and hydroelectricity, with plans to expand these areas down the line.

“We’re already looking into expanding our hydro capabilities in the next 12 months. We see these being major areas of growth that we would be foolish not to capitalise on,” Beroz said.

He said he hoped the government will continue its push to get more businesses to look into renewable energy.

“We can’t afford to be left on the blocks while the rest of Southeast Asia speeds away,” he said. - FMT