The 33rd "Clean Coal Day in Japan"
International Symposium (2024）

Carbon Neutrality Policy
Updates of Malaysia
2nd September 2024
By Dato' Ir. Ts. Abdul Razib bin Dawood
Chief Executive Officer Energy Commission / ASEAN Forum on Coal Chairman

HISTORY OF THE ESTABLISHMENT OF ENERGY COMMISION
1st May 2021

12 Dec 2023
2nd Jul 2018

1st May 2001
AAstatutory
establishedunder thestatutory body
body under
the Energy
Commission
Act 2001, Suruhanjaya
Energy Commission
Act 2001,
Tenaga Suruhanjaya(ST) is responsible
for regulating
Tenaga(ST) istheenergy
sector,specificallytheenergy
responsible for regulating theelectricityandpipedgas
supplyindustries,sector, specifically the electricity andinpiped gas supplyindustries, inP. Malaysia andP. Sabah.
Malaysia andSabah.

ST under Ministry of Energy
ST under Ministry of Energy
Transition and Water
Transition and Public Utilities
Transformation (PETRA)

ST under Ministry of

ST Energy,
under MinistryofScience,
Energy, Science,Technology,Technology,Environment andEnvironment andClimateChange
ChangeClimate(MESTECC)(MESTECC)

1st Jan 2002
Taking overover theTaking
the roleroleofofthe
theDepartment of Electricity andDepartment of Electricity andGas Supply, the Energy
Gas
Supply, the Energy
Commission started its
Commission
started its
operation.
operation.

(KPTDGA)

2nd Dec 2022

10th Mar 2020
ST under Ministry of Energy andST underMinistryof Energy
NaturalResources
and Natural
Resources(KETSA)(KETSA)

ST under Ministry of Natural
ST under Ministry of Natural
Resources,
Environment andResources, Environment andClimate
ChangeClimate Change(NRECC)(NRECC)CHALLENGES: ENERGY TRILEMMA PERSPECTIVE
ENERGYSECURITY• ENERGY SECURITY – management ofprimary energy supply from domestic andexternal sources, reliability of energyinfrastructure, ability to meet current andfuture demand• ECONOMIC EQUITY ANDSUSTAINABILITY – a FAIR tariff frameworkacross all consumer groups ensuring equal
access (affordability) and long-term fiscal
sustainability (weaning off subsidies)• ENVIRONMENTAL SUSTAINABILITY –reduction in energy and CO2 intensity,transition to renewable and low-carbon
energy sources
ENVIRONMENTALSUSTAINABILITY
Source: World Energy Council

ECONOMIC EQUITY &SUSTAINABILITYCARBON EMISSION INTENSITY

0.10

Pen. Malaysia Power Sector Carbon Emission Intensity of GDP 2021-2035 Projection(kgCO2/RM)
Emission Intensity in 2005 (0.096)

45% Intensity
Reduction
2030

Emission Intensity (kgCO2/RM)

0.09

60% Intensity
Reduction
2035

0.08

0.07
35% Reduction (0.062)

0.06
45% Reduction (0.053)

0.055

0.05

0.04

60% Reduction (0.038)

0.038
0.03

0.02

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

Note

•

The GDP projections are based on a moderate recovery scenario of the Malaysian economy (range from 5.7% - 4.0% in 2021-2035) following the COVID-19 pandemic.

2033

2034

2035

RENEWABLE ENERGY POLICY AT A GLANCEicKEfkO

fR

8th Malaysia Plan
Small Renewable
Energy Power (SREP)
and Biomass Power
Generation & Cogen(BIOGEN) project .

NREPAP
National Renewable
Energy Policy andAction Plan (NREPAP)– guide for RE
development inMalaysia

11th Malaysia Plan
Large Scale Solar(LSS), Net Energy
Metering (NEM) and
Self Consumption(SELCO) programme
was introduced

MyRER
In year 2021
Malaysia Renewable
Energy Roadmap(MyRER) – projected
31% RE share.
National Energy
Policy (NEP)
introduced in 2022

RE & SEDA Act 2011
Feed in Tariff (FiT)
was introduced.
Paris Agreement on
Climate Change(2015)

9th Malaysia Plan
Malaysia Building
Integrated
Photovoltaic (MBIPV)
project - gridconnected PV system

2

Energy Transition
National Energy
Transition Roadmap(NETR) introduced inJuly 2023

4NEP 2022
The National
Energy Policy,
2022-2040 (DTN)
strategically charts
the way forward
and outlines key
priorities for theenergy sector inthe coming years.

6

RENEWABLE ENERGY INITIATIVES IN PENINSULAR MALAYSIA
2011

BIOGAS

2015

BIOMASS

SMALL HYDRO

2016

2016

2017

2021

2023

2024

SOLAR

ENEGEM&TPA
Feed-in Tariff (FiT)▪ Sold to grid atpremium rate for a
fixed period▪ Based on quota
subject to FiT fund▪ Solar quota ended in2017▪ Operational (MW):634.34 (as of Feb-23)

New Enhanced
Dispatched
Arrangement (NEDA)▪ Merchant plant /price takers▪ Export to grid andsupply to Single
Buyer bid on pricequantity / declarecapacity▪ Operational (MW):8 Participant(230MW)(as of Aug -24)

Large Scale Solar (LSS) Net Energy Metering▪ Competitive bidding (NEM)▪ PPA based▪ Own consumption▪ Installation size below▪ Operational (MW):own avg. consumption
2,160MW (as of July-24) ▪ Only excess export togrid▪ Bidding Quota (MW):Fast Track: 200▪ Operational (MW):LSS1: 250
750.49 (as of Feb-23)
LSS2: 460
LSS3: 500
▪ Balance of Quota
LSS4: 1,000(MW):LSS5: 2,000
NEM Rakyat: 65.2MW
NEM GoMEn:
46.93MWNOVA: 175.63MW

Self Consumption (SelCo)▪ Own consumption▪ No export to grid
▪ Operational (MW):▪ Solar: 343MW▪ Non-Solar:
1180.08MW

Green Electricity Tariff(GET)▪ Consumers can buy
green electricity fromgrid▪ Consumers will
receive REC

Corporate Green Power
Programme (CGPP)▪ Corporate Customerscan purchaseelectricity virtuallyfrom SPP throughNEDA.

▪
▪
▪
▪

▪ Quota: 800MW▪ Fully Taken up▪ By 32 Participant

GET 2024:
Quota: 6,600 GWh
LV = 10sen/kWh
MV & HV=20sen/kWh

Energy Exchange
Malaysia (ENERGEM)▪ Designated platform tofacilitate sales ofrenewable energy orGreen Electricity
between Malaysia andneighbouring countries
in the region▪ ENEGEM acts as themarketplace to sell
Green Electricity
through a bidding
mechanism▪ 100 MW Trial

6Source: ST, SEDA & TNB

The 4 Guiding Principles ofNETR

NATIONAL ENERGY TRANSITION ROADMAP(NETR)CAPACITY MIX PROJECTION BY 2050

Target 1: 70% RE installed capacity share by 2050
Target 2: No new coal power plant

Source: National Energy Transition Roadmap••••

Coal-fired power plant to be phased out by 2045 with no new development of coal-fired power plant
Gas is expected to act as a lower-carbon transition fuel to replace coal as source of fuel for baseload power
70% RE share of installed capacity by 2050 will be predominantly driven by solar PV installation
Implement physical and regulatory enablers to accommodate higher VRE

GREEN TECHNOLOGY INCENTIVES: PROMOTING GREEN INVESTMENT
GITA PROJECT (BUSINESS PURPOSES)

Green Hydrogen

Integrated Waste
Management (IWM) & EV
Charging Station

Investment Tax Allowance(ITA) of 100% for eligible
qualifying capital
expenditure (CAPEX)
incurred up to 10 years(5+5).

Investment Tax Allowance(ITA) of 100% for eligible
qualifying capital expenditure(CAPEX) incurred for 5 years
from the date 1st qualifying
CAPEX incurred.

Offset against 100% or
70% of Statutory Income 10years (5+5).

Offset against 100% ofStatutory IncomeFor further information please contact Malaysian Investment Development Authority (MIDA)

GITE

Renewable Energy(Business Purposes)

SOLAR

BIOMASSSMALLHYDROGEOTHERMAL WIND

BIOGAS

Investment Tax Allowance (ITA)of 100% for eligible qualifying
capital expenditure (CAPEX)
incurred for 5 years from the date
1st qualifying CAPEX incurred.
Offset against 70% of Statutory
IncomeSolar Leasing

Income Tax Exemption (ITE) of
70% statutory income for solar
leasing activity for a period of up
to 10 years of assessment. The
incentive period shall commencefrom the date of 1st invoiceissued.
Capacity (MW)Incentive Period>3MW- ≤10MW

5 years>10MW- ≤30MW

10 years

GREEN TECHNOLOGY INCENTIVES: PROMOTING GREEN INVESTMENT

The 33rd "Clean Coal Day in Japan"
International Symposium (2024）

THANK YOU!
TERIMA KASIH!
ありがとう!
By Dato' Ir. Ts. Abdul Razib bin Dawood
Chief Executive Officer Energy Commission / ASEAN Forum on Coal Chairman