The Malaysian government’s commitment to renewable energy in the 2025 Budget, particularly with the allocation of RM1 billion for green technologies, is a welcome move. However, it’s only the tip of the iceberg. To genuinely hit that ambitious net-zero emissions target by 2050, we need to crank things up a notch. The government should roll out more robust financial incentives like tax breaks, grants, or subsidies specifically tailored for companies diving into renewable energy projects. This is especially critical for emerging technologies and decarbonisation initiatives, which are still in their infancy but hold immense potential.
Innovative technologies are the lifeblood of a diverse and resilient green economy. Without adequate funding, however, many of these promising solutions might never see the light of day. A well-structured grant program could be a game changer, providing innovative start-ups with the financial backing they need to mitigate risks, scale up pilot projects, and fast-track the adoption of groundbreaking technologies.
The decarbonisation efforts by UEM Lestra and TNB are commendable, but we must adopt a holistic approach to the energy transition. We can’t overlook the economic potential lying dormant in retired coal and gas-fired power plants. These facilities often come with a legacy of solid industrial infrastructure and established community ecosystems. Take a page from the Battersea Power Station playbook in London, which morphed into a bustling shopping and entertainment hub nearly 40 years after its decommissioning. Alternatively, we could repurpose these plants into data centres, leveraging the existing water and grid infrastructure.
For Malaysia to become a magnet for green investments, the Madani government should seize two key opportunities. First, it must streamline the regulatory environment. Administrative bottlenecks can be a real buzzkill for investors. By clarifying guidelines and speeding up approval processes, Malaysia can position itself as a more appealing destination for green capital. Second, the focus should shift toward re/upskilling the workforce, especially in high-skill areas like industrial, mechanical, and production engineering, as well as data analytics and emerging technologies. This investment in human capital is crucial for fostering new green industries and establishing Malaysia as a regional leader in renewable energy.
While the introduction of the Corporate Renewable Energy Supply Scheme (CRESS) is a positive step toward liberalising Malaysia’s power offtake market, the high system access charge (SAC) for both firm and intermittent power could limit broader participation. To ensure CRESS strengthens the renewable energy ecosystem, the Energy Commission (EC) must rethink the SAC structure. Engaging transparently with industry players and stakeholders to devise alternative mechanisms for recouping costs associated with grid upgrades and maintenance is essential.
By leveraging the anticipated increase in renewable energy integration under CRESS, the EC has the opportunity to improve project economics for participating companies while ensuring grid resilience and sustainability. This adjustment could create a win-win situation, benefiting not only investors but also the nation and its stakeholders, all while propelling Malaysia’s renewable energy ambitions forward. The path ahead is filled with potential, but it demands bold action and a collaborative spirit.
