KUALA LUMPUR: The first meeting of the National Energy Council (NEC) is scheduled to take place in October this year, according to Rafizi Ramli, the Economy Minister. He mentioned that the NEC, with Prime Minister Datuk Seri Anwar Ibrahim as its chairperson and the Economy Ministry as its secretariat, will establish high-level strategic directions and policies. This will allow working committees to coordinate and report progress. In his keynote address at the Energy Transition Conference on Tuesday (Aug 29), Rafizi stated that the establishment of the NEC sends a strong signal of the government’s commitment to moving from blueprints to implementation.
Rafizi emphasized that there are three critical structures necessary to achieve the ambitions of the National Energy Transition Roadmap (NETR), namely strong governance, substantial financing, and a credible and transparent exchange system. The National Energy Transition Facility, which combines funding from public, private, and philanthropic channels, will be more than just another facility housing government investments. According to Rafizi, the government will co-invest in key projects through concessional capital or development financial institutions, as well as develop bankable project pipelines through technical assistance, with the goal of unlocking green funds at both local and international levels.
Rafizi also pointed out that Malaysia cannot fully tap into the potential of renewable energy (RE) without establishing a physical energy exchange within the country. He stated that an exchange is necessary for the country to command price premiums of RE through cross-border trading. As the exchange evolves, market-creating products can be developed to further maximize the value of different markets. Additionally, the exchange can facilitate closer interconnectedness within Southeast Asia, benefiting the region as a single economic bloc. To ensure fairness and transparency, a single market aggregator needs to be established to gain trust from both local and international buyers and sellers.
The government is also introducing the Responsible Transition 2050, a low-carbon pathway for the energy sector. This pathway is more ambitious than the previously set Low-Carbon Nation Aspiration 2040. According to Rafizi, it will unlock economic value through initiatives and enablers, resulting in a 10% to 15% increase in gross domestic product value from high-growth and high-value (HGHV) market-creating products. Businesses will be incentivized to invest in infrastructure and technology, while a cleaner energy mix and energy efficiency will prepare industries for a future where the greenest products attract investments. Furthermore, the HGHV sectors will create 350,000 jobs across the country, with 70% of income gains going to low- and medium-income households, benefiting the people. – Bernama
Credit: The Star : News Feed
