KUALA LUMPUR, March 11 — The government is striving to advance the electricity grid infrastructure nationwide to ensure it can accommodate higher capacities of renewable energy (RE) input by 2050, said Deputy Prime Minister Datuk Seri Fadillah Yusof. Contact online >>
KUALA LUMPUR, March 11 — The government is striving to advance the electricity grid infrastructure nationwide to ensure it can accommodate higher capacities of renewable energy (RE) input by 2050, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the minister of energy transition and water transformation, stated that the adoption of cutting-edge technologies, including energy storage and the digitalisation of smarter grid control systems, needs to be undertaken to support the intermittent nature of RE inputs such as solar energy.
He noted that this effort will be implemented in stages from this year until 2050, with a total investment value required to enhance the capacity of the electricity grid infrastructure at approximately RM184 billion.
"This effort will enable the provision of grid infrastructure facilities that are in line with the government''s energy transition aspirations to promote the use of RE and to reduce the consumption of fossil fuels in the energy sector," he said.
Meanwhile, Fadillah stated that the government, through relevant agencies such as the National Water Services Commission (SPAN), will coordinate the delivery of water assistance using tanker trucks to states facing water supply shortages.
"This is in line with the Memorandum of Understanding (MOU) on Cooperation Between Water Operators in Addressing Water Supply Crises, signed on May 17, 2022," he said.
At the same time, he said that coordination between state governments and relevant agencies to initiate cloud seeding assistance is also being carried out to help increase water levels in dams, which serve as raw water sources for water treatment plants in affected states. — Bernama
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A recent influx of data center investments in Malaysia, led by U.S. firms, could increase electricity demand by 11,000 megawatts (about 40 percent of Peninsular Malaysia''s installed capacity). As these firms look to reduce their global carbon footprint, their data centers will need electricity generated from renewable energy (RE) sources.
In September 2024, Malaysia introduced guidelines for the Corporate Renewable Energy Supply Scheme (CRESS) as part of its goal of achieving 70 percent RE in the national power generation mix by 2050. CRESS aims to liberalize the power sector by allowing RE producers to directly negotiate electricity tariff rates with corporate customers. The state-owned utility company will operate the power grid, connecting suppliers and consumers, and impose a system access charge. A lower access charge will apply if the RE producer provides ''firm electricity output'' by integrating battery storage and other technologies to stabilize its power supply.
Peninsular Malaysia''s power utility company, Tenaga Nasional Berhad (TNB), wants to increase both the flexibility and the robustness of its grid. This will be critical as more RE capacity comes online and more users buy and sell electricity off the grid. It also aligns with a regional plan to establish cross-border electricity trading infrastructure with neighboring Thailand and Singapore.
A few days after the CRESS introduction, TNB announced it would invest $10.3 billion between 2025 and 2027 to enhance the national grid infrastructure. Investments would go towards grid modernization, accommodating RE power, connecting new power generation projects to the grid, meeting large demand growth, customer service enhancement, and grid resilience.
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KUALA LUMPUR (March 26): Malaysia''s national power grid has the capacity to take on more energy from renewable energy (RE) sources up until 2030 without affecting grid stability, said International Renewable Energy Agency (Irena) director-general Francesco La Camera.
However, investment for the grid of the future must be committed now to ensure continuity through the energy transition, La Camera said.
"At the moment, Malaysia is not in the hurrybut naturally, the grid has to evolve to make it possible for even more RE sources to come in," he told The Edge at the sidelines of theMalaysia Energy Transition Outlook launch.
"This will also increase the appetite for investments, once you are sure you can deliver the electricity and be paid in return. It is one of the more relevant push to encourage additional RE capacity," La Camera said.
Overall, Malaysia is expected to see renewables'' installed generation capacity (excluding battery storage) to increase to up to 33% of total capacity by 2030, according to the Irena Malaysia Energy Transition Outlook Report.
The energy transition outlook report anticipates US$4.8 billion in investments required for the national transmission grid from now until 2030.
At the same time, the country requires significant installation of up to 1.4GW new solar energy capacity to the grid annually in the period,to accelerate Malaysia''s energy transition and to keep the country on a climate-safe pathway, the report found.
To be sure, Malaysia''s grid operator Tenaga Nasional Bhd is investing RM7 billion each year up until 2024 for its Grid of the Future programme, which also entails the Asean power grid interconnectivity ambition.
A 2021 report by the Energy Commission indicated a planned installation of five battery energy storage units with a capacity of 100MW annually into the system from 2030 to 2034, in order to address system stability concerns.
In the short term, one of the biggest headwinds in RE generation installation is to address energy subsidies skewed towards fossil fuels.
According to La Camera, Irena''s study found that in four-fifths of the planet, RE is a cheaper source of electricity than any other form. He viewed that this largely applies for hydrocarbon-producing countries like Malaysia as well.
As subsidies are applied, it will continue to shield consumers from the real cost of energy. It is crucial that incentives and investments are directed towards long term, productive and sustainable uses, he said.
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