The Renewable Energy (RE) exported to Singapore starting this month comes from the country's surplus green electricity supply that is currently unused.
Energy Transition and Water Transformation Deputy Minister Akmal Nasrullah Mohd Nasir told the Dewan Rakyat on Wednesday (Dec 11) that the government is actively encouraging more local companies to transition to green electricity.
Akmal added that the gradual and planned increase in renewable energy capacity is part of the ministry’s and the Energy Commission’s efforts to prepare for growing demand.
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Energy Transition and Water Transformation Deputy Minister Akmal Nasrullah Mohd Nasir told the Dewan Rakyat on Wednesday (Dec 11) that the government is actively encouraging more local companies to transition to green electricity.
Akmal added that the gradual and planned increase in renewable energy capacity is part of the ministry’s and the Energy Commission’s efforts to prepare for growing demand.
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WATCH MORE: https://thestartv.com/c/news
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NewsTranscript
00:00Access to green electricity supply is one of the important conditions in creating a conducive investment ecosystem to attract high-value data centers to Malaysia.
00:14The government's commitment, especially the Ministry of Energy Transformation and Water Transformation, or PETRA, to increase the mix of renewable energy capacity, or TBB, in the country's electricity supply from 28% to 31% by 2025, 40% by 2035, and 70% by 2050,
00:44is one of the main advantages and factors that encourage investors to build data centers in Malaysia.
00:52The increase in TBB capacity in an integrated and planned manner is a step in preparing PETRA and the Ministry of Energy Transformation to meet the demand for green electricity that is needed by data centers,
01:06in addition to being one of the conditions to attract high-value new investment to this country.
01:13The existing renewable energy program will be continued with improvements on the side, introducing a new TBB program to increase the mix of renewable energy in the country's electricity supply.
01:26These include the Feed-in Tariff Program, or FEAT, Large Scale Solar, or LSS, Net Energy Metering, or NEM, Self-Consumption, or SELCO, New Enhanced Dispatch Arrangement, or NEDA, and Corporate Green Power Program, or CGPP.
01:44In addition, to enable corporate companies to gain access to green electricity supplies more easily than TBB providers, the government has introduced the Corporate Renewable Energy Supply Scheme, or CRES.
02:01This program allows corporate companies, including data centers, to get green electricity supplies directly from TBB providers through the grid utility network.
02:13This scheme, based on the open-grid concept, will enable corporate companies with ESG commitments to use green electricity.
02:43The next step is to generate up to 11,000 megawatts, which means that it will generate up to 40% of the country's green energy output.
02:50So, I have two questions. First, will this not jeopardize the country's NDC by 2050 for Malaysia's net zero?
03:01Second, if we look at the existing data, what is the involvement of the government in the negotiations with the KPKT?
03:09Because I am worried that when we make policies to sell green energy to Singapore, and then there is a large data center commitment, we will not be able to reach our net zero target by 2050.
03:23That is my concern. That is why I think, what is the mechanism for the involvement so that the data center does not take up 40% of the country's green energy? Thank you.
03:34Thank you, Mr. Prime Minister. Thank you, Mr. Speaker.
03:37So, as I tried to say earlier, the commitment today is, first, we must continue to increase the capacity of green energy output.
03:48So, that is why some of the foundations that have existed so far have been improved and introduced as an example of the CREST concept.
03:56Secondly, for your information, we have passed the Energy Efficiency and Conservation Act this year, and we hope that it will be passed next year.
04:09The Energy Efficiency and Conservation Act stipulates that all users who pay a bill of more than RM2.4 million a year need to reduce their commitment to the EECA, i.e. the industrial sector, etc.
04:26But at the same time, as we understand, Petra is based on supply.
04:37So, we plan, in the power administration, planning and energy or electricity implementation and tariff, which we review every year.
04:50But this year, we do it twice because there is a significant increase in the data center.
04:58But in terms of how we manage, for example, the demand that you mentioned earlier, how do we negotiate with the KPKT, which holds the PBT.
05:09But yesterday, as an example, under the State Investment Council, an agreement was announced for the use of a guidance line for the construction of a data center,
05:21which is one of the components for the energy issue. We will use the metric for the efficiency of energy users or the Power Usage Effective, PUE, which is 1.4 or lower.
05:35That is an example that we actually always provide feedback.
05:40Although Petra is based on supply, but in terms of use, we also provide input directly.
05:50And maybe there is also a plan to make the commitment earlier than the data center to continue to increase the use of green energy,
06:00not just the metric, but how we want to tie the commitment. Those are some of the suggestions that we have received.
06:07And lastly, there is one more question from Kubang Krian.
06:11Any energy that we sell to, for example, Singapore through Inejem, that is an excess of green energy at this time.
06:20It means that what we generate is still an excess and we encourage more companies that want to fulfill ESG to choose the use of green energy.
06:31Thank you, Mr. President.