The Malaysian government launched the National Energy Transition Roadmap ("NETR") in 2023 to guide the country's journey toward achieving net zero greenhouse gas emissions by 2050. In line with the objectives outlined in the NETR, the Government has announced a series of energy transition programmes and initiatives for 2024. These include:
- the Large Scale Solar (LSS) photovoltaic programme, which utilises a competitive bidding process to drive down the Levelised Cost of Energy (LCOE) for the development of large scale solar photovoltaic plants;
- the Low Carbon Energy Generation Programme (LCEGP) initiative, under the New Enhanced Dispatched Arrangement ("NEDA") mechanism, which aims to enhance competition and cost efficiency in the Single Buyer market. It allows non-Power Purchase Agreement ("PPA")/Service Level Agreement ("SLA") power generators to sell energy to the Single Buyer by bidding their variable costs against those stated in the PPAs and SLAs;
- Increased Net Energy Metering ("NEM") Quota under the NEM Programme where the Government has announced additional quota under the NEM programme. This programme allows energy produced from solar photovoltaic installations to be consumed first, with any excess exported to Tenaga Nasional Berhad (TNB) at a prevailing displaced cost; and
- the Solar for Rakyat Incentive Scheme (SolaRIS) which is a special incentive to encourage the installation of solar photovoltaic systems by domestic consumers.
For more information, click on the links below to read our Legal Updates on the NETR as well as the energy transition programmes and initiatives mentioned above:
