Recently, the Malaysian government has taken a significant step towards accelerating Malaysia’s energy transition by launching the National Energy Transition Roadmap (NETR).
The NETR plays a critical role in guiding the country’s transition from a traditional fossil fuel-based economy to a sustainable green economy, with a specific focus on addressing the energy trilemma of security, affordability, and sustainability.
As the NETR continues to unfold, Malaysia can look forward to a future where solar panels grace rooftops and EVs gracefully glide on streets, creating a nation that is at the forefront of the global energy transition journey.
At the heart of the NETR are ten flagship catalyst projects that are expected to attract substantial investments, create numerous job opportunities, and significantly reduce greenhouse gas (GHG) emissions.
The roadmap is built on six energy transition levers, which are Energy Efficiency, Renewable Energy, Hydrogen, Bioenergy, Green Mobility, and Carbon Capture, Utilization, and Storage (CCUS).
Fun fact: In the most recent Energy Transition Index 2023 by the World Economic Forum, Malaysia is ranked first in Southeast Asia, second in emerging Asia, and an impressive 35th in the world.
1. Efficient Switch
To promote energy efficiency and conservation, the government plans to introduce the Energy Efficiency and Conservation Act (EECA).
Additionally, an Energy Audit for the Rail Sector will be conducted to identify energy-saving opportunities and reduce utility costs.
2. Renewable Energy Zone
The establishment of an Integrated Renewable Energy (RE) Zone spanning the entire energy supply chain, from generation to energy storage and consumption, will be a pivotal step.
The creation of centralized large-scale solar (LSS) parks and Hybrid Hydro-Floating Solar PV (HHFS) projects will significantly boost renewable energy generation.
In addition to these initiatives, the NETR introduces another groundbreaking project: the integration of solar power on a household level.
Under this scheme, households will have the opportunity to lease out their rooftops to accommodate up to 10 kW of solar capacity.
This rooftop leasing program will be a part of a township-wide effort, with high-demand users from the commercial or industrial sectors acting as offtakers for the generated solar energy.
By participating in rooftop leasing, homeowners can generate a steady monthly income while contributing to the clean energy transition.
3. Energy Storage
Utility-scale Energy Storage Systems (ESS) will play a crucial role in enabling higher integration of variable renewable energy sources into the national energy grid.
4. Energy Secure
The Sabah Energy Security Initiative aims to ensure a long-term energy supply for socioeconomic development through the development of large-scale solar (LSS) and small hydropower plants, as well as exploring biowaste utilization and geothermal power generation.
5. Green Hydrogen
Sarawak Hydrogen Hub will establish Sarawak as a regional green hydrogen hub, with green hydrogen production plants serving domestic and export purposes.
6. Hydrogen for Power
Collaboration between TNB and PETRONAS will facilitate the co-firing of green hydrogen and ammonia in TNB generation plants, reducing carbon emissions.
7. Biomass Demand Creation
The development of biomass clustering and biomass co-firing projects will enhance economies of scale and reliability, promoting the utilization of sustainable biomass sources.
8. Future Mobility
The installation of 10,000 EV charging stations by 2025 will support the adoption of electric vehicles.
The introduction of a mobile hydrogen refueling station and the electrification of public transport will further contribute to a cleaner transportation sector.
9. Future Fuel
The establishment of a bio-refinery in Pengerang, Johor, will catalyze the production of sustainable aviation fuel (SAF), hydrotreated vegetable oil (HVO), advanced sustainable fuel (ASF), and biochemicals.
10. CCS for Industry
The implementation of a regulatory framework and CCS projects for high-CO2 gas fields will play a significant role in capturing and storing CO2 emissions from gas production fields.
Prioritization criteria
The NETR prioritizes projects based on four criteria:
- Emission Reduction Potential: Projects that advance green growth and sustainability while addressing the energy trilemma.
- Economic Opportunities: Initiatives that propel strategic industries, especially Micro, Small, and Medium Enterprises (MSMEs), fostering investments and job creation.
- Cost Effectiveness: Favoring upfront investments in emerging technologies that yield long-term benefits.
- Social Inclusiveness: Emphasizing clean energy sources that benefit communities without compromising future generations.
Updated Renewable Energy Policies
Besides, with the rolling out of the NETR, the Malaysian government also updated several of its renewable energy policies, including:
- Increasing the target for installed RE capacity from 40% in 2035 to 70% by 2050 to attract multinational companies, especially RE 100 companies, to invest in Malaysia.
- Encouraging investment in the RE value chain and promoting diversified RE programs based on the concept of a self-contained system.
- Scaling up the installation of solar systems in government buildings.
- Allowing cross-border RE trade through an electricity exchange system.
What All This Means: Embracing a Renewable Energy Future
The National Energy Transition Roadmap (NETR) Part 1 marks a significant step forward for Malaysia’s commitment to a sustainable future.
With the implementation of these ten flagship catalyst projects, the government is taking bold strides towards accelerating the adoption of renewable energy sources and transforming the nation’s energy landscape.
More solar panels
One of the key takeaways from the NETR is the government’s strong push for the widespread adoption of renewable energy.
With an increased focus on renewable energy zones, solar parks, green hydrogen production, and biomass utilization, we can expect to witness a surge in renewable energy capacity across the country.
By participating in rooftop leasing, homeowners can generate a steady monthly income while contributing to the clean energy transition.
This additional source of income could significantly lower their electricity bills and put more cash in their pockets.
This innovative approach empowers individual households to actively engage in the country’s renewable energy agenda, further fostering a sense of ownership and commitment to sustainability.
This means more solar panels and other clean energy technologies being integrated into our power generation infrastructure.
More EVs
In addition to embracing renewable energy sources, the roadmap emphasizes the promotion of electric vehicles (EVs) and the establishment of EV charging stations.
The plan to install 10,000 EV charging stations by 2025 will undoubtedly encourage the transition towards electric mobility.
As a result, we can anticipate a rising number of EVs on our streets, contributing to reduced reliance on fossil fuels and a cleaner transportation sector.
The positive impact of these initiatives will extend beyond our energy and transportation sectors.
As Malaysia shifts away from fossil fuels and towards cleaner alternatives, we can expect a significant reduction in air pollution caused by car exhaust.
With more EVs and efficient public transport electrification, the air we breathe will become cleaner and healthier for our communities.
Overall, the National Energy Transition Roadmap (NETR) Part 1 signals an exciting era of sustainable development and green progress for Malaysia.
The government’s commitment to renewable energy, electric mobility, and reduced air pollution will not only contribute to mitigating climate change but also improve the quality of life for Malaysians.