KUALA LUMPUR: Malaysia’s ambitious pursuit of low-carbon energy goals is confronted by a dual challenge—ensuring value delivery and establishing the necessary ecosystem to realize the nation’s lofty target of achieving 70% renewable energy by 2050.
In a recent report, local think-tank Datametrics Research and Information Centre Sdn Bhd (DARE) highlighted Malaysia’s consistent capacity for growth in renewable energy sectors. However, the report underscores the imperative to enhance energy efficiency and address environmental concerns through diversifying the sustainable energy mix.
Titled “A Comparative Analysis of Renewable and Sustainable Energy Platforms in Malaysia,” the report delves into the challenges and prospects of various energy sources, including solar, wind, hydro, geothermal, biogas, and biomass. It also examines the synergistic potential of co-generation (Cogen) and waste heat recovery (WHR) systems, crucial components for Malaysia’s goal of achieving 70% renewable energy by 2050.
Pankaj Kumar, the Managing Director of DARE, emphasized the benefits observed in countries like Germany and Japan from adopting sustainable energy solutions such as Cogen and WHR. Despite shared challenges, he stressed that Malaysia’s renewable energy sector has consistently shown growth, urging industries involved in the sector to remain agile.
“Adapting to the ever-changing sustainable energy environment is crucial to maintaining our push towards net zero and ensure that the solutions we commit to are as practical as they are equitable and just,” Kumar said in a statement.
Key findings from the report include distinguishing between renewable and sustainable energy for effective investment decision-making, the role of carbon offsetting in enhancing Malaysia’s green initiatives, and the nation’s leadership in sustainable solutions and green innovative technologies within the ASEAN region.
Kumar acknowledged challenges uncovered during the study, including the importance of addressing issues such as energy storage to avoid hindering Malaysia’s energy targets. He emphasized that industries and businesses should view the adoption of sustainable technologies and a diversified energy mix, along with climate adaptation and resilience financing, as opportunities that yield financial benefits.
“With Cogen, for example, it can achieve about a 40-60% reduction of energy cost. Industries and businesses need to assess the opportunities in terms of fiscal prudence, environmental dividends, and return on investment from green energy initiatives,” Kumar stated.
He highlighted the cost-effectiveness and carbon emission reduction capabilities of Cogen, citing Safran, an aerospace company, which achieved significant savings and efficiency through its WHR facility in Sendayan, Seremban, demonstrating the practical benefits of sustainable technologies.