The renewable energy sector is gaining ground around the world due to the vast potential to environment conservation and the economy. Renewable energy is about creating energy using natural sources, such as the sun, water, wind and geothermal sources. However, in years to come more renewable energy sources will become available, not to mention the improvement on the efficiency of the existing sources.
Why is renewable energy so important in meeting a country’s energy needs?
From the economic point of view, it enables the business to reap the benefits of energy cost saving. Moreover, the use of renewable energy helps the country to have a higher income economy because it is seen as a growth sector.
In Malaysia, the government is committed to taking all necessary measures to protect the environment, both as a responsibility and a gift to the future generation. This is the main reason why in January 2019, the Malaysian government is coming with an open solar tender for an estimated RM 2 billion worth of solar projects.
These solar projects will be announced under the third cycle of the large-scale solar (LSS3) scheme, which is aimed at increasing Malaysia’s electricity generation from renewable energy. The projects are expected to be of 500 MW capacity.
Tendering renewable solar power generation capacity can promote effective development of renewable energy. Why? Because it provides a scheme that bottoms out public support by providing a non-discriminatory and transparent allocation. Tenders are used worldwide to build solar power capacity.
In Malaysia, renewable energy is only 2% of the country’s total energy generation. But Yeo Bee Yin, Malaysian environment Minister, wants to increase the renewable energy to 20% by 2025.
To achieve 20 per cent of renewable energy by 2025, the nation must produce an additional 3,9991 MW or four gigawatts of renewable energy, which means more LSS needs to be added to the system.
Up until now, the Malaysian government has two LSS project cycles with an installed capacity of 958 MW. By the end of 2018 till 2020, other projects are expected to start generating energy.
Despite the fact that many developers have enjoyed the 500MW auctions on a regular basis, many others were hoping for the capacity level in LSS 3 to be far more benevolent.
There are many benefits of increasing the RE in electricity generation like reducing carbon emission by 49 per cent. In addition, it will also save the system RM270 million for the period from 2018 to 2037.
As Malaysian population grows, the energy demand is also growing at the same time, and that’s why the nation has chosen to turn to solar energy to meet the demand and to cut down on harmful emissions. In the decade ahead, solar energy innovations are likely to concern public and business policymakers.
In Malaysia, the main energy sources have always been oil and gas. Nevertheless, the gas reserve is estimated to only last for another 33 years and the oil reserves 19 years, so renewable energy will be a cornerstone of energy generation.
That’s why since 2001, the Malaysian government has started to promote RE in the Third Outline Perspective Plan (OPP3), to help reduce the high dependency on fossil fuels.
But this not all. As part of a major effort to protect Malaysia’s environment, the federal government will assign RM60 million to help fund specific projects to protect and expand existing natural reserves.
In fact, Malaysia has an abundance of energy resources, both depletable and renewable sources, although it had always been an over-dependence on conventional sources of energy. That’s why this type of incentives are so good for the country well being.
The use and production of renewable energy will bring only positive changes to Malaysia: it will secure the energy supply, reduce CO2 emissions, slow down the negative global temperature and create many more business and job opportunities.