Malaysia's Ministry of Economy recently launched the National Energy Transition Roadmap ("NETR") as the blueprint for Malaysia's transition to a clean energy, low-carbon economy.
The NETR highlights ten flagship catalyst projects and initiatives to be carried out. These are based on six energy transition levers: (i) energy efficiency (EE); (ii) renewable energy ("RE"); (iii) hydrogen; (iv) bioenergy; (v) green mobility; and (vi) carbon capture, utilisation and storage (CCUS). The NETR also elaborates on the five enablers to facilitate the energy transition, namely (i) financing and investment; (ii) policy and regulation; (iii) human capital and just transition; (iv) technology and infrastructure; and (v) governance and implementation.
The Government of Malaysia has also decided, amongst others, to:
- increase the country's installed RE capacity from 40% in 2035 to 70% by 2050;
- introduce the concept of a self-contained system to the RE development framework, according to the "willing buyer, willing seller" principle;
- increase the installation of solar systems on government buildings; and
- allow cross-border RE trade through the establishment of an electricity exchange system, complementing the Association of Southeast Asian Nations' (ASEAN) power grid initiative.
The NETR also provides that the Government intends to reform the power sector by establishing a third-party access ("TPA") framework – to supply fuel sources and broaden access to the grid infrastructure (possibly in the form of smart grid and/or TPA to the grid system) – and a retail market.
The NETR expounds on Malaysia's energy transition ambitions and identifies the ingredients necessary to achieve those goals. The next step is the formulation of clear and concrete policies and regulations to activate the key initiatives which have been identified in the NETR.
For more information, click here and here to read our Legal Updates regarding the NETR.
