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  • 3 years ago
The government launched the first phase of the National Energy Transition Roadmap (NETR) on Thursday (July 27) with Economy Minister Rafizi Ramli saying that the government will focus on allowing more large-scale integrated urban housing developments to include solar rooftops in their pricing packages to enable property players to look into energy storage solutions. The two pilot projects under way involve Sime Darby Property.

The NETR is expected to open up investment opportunities of between RM435bil and RM1.85tril by 2050.

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Transcript
00:00 So, we only have about 20 minutes, so let's just keep the session tight, keep your questions
00:10 on the road map.
00:12 We have taken a slightly different approach when it comes to policy rollout.
00:21 We wanted to balance between building the momentum and completing the full picture.
00:31 That's why today we launched the first part of NETL, because in our assessment it is important
00:43 to get the excitement and the buy-in, especially from the industry players first, and to bring
00:51 the attention to Malaysia's ambition.
00:54 And within a month, we will roll out the second part of NETL.
01:00 The focus is basically on large-scale housing development.
01:05 That's why we work with Simon Dhabi Properties, because it is something that can be pulled
01:15 off commercially by large-scale townships without government funding.
01:25 Medium and high-end properties, usually the buyers would want to have solar.
01:31 I mean, there's already a buy-in.
01:34 The process now is the application for quota has to be made individually.
01:44 So it becomes quite restrictive for large-scale property developers like Simon Dhabi and I
01:52 hope the others, because they can't package the whole thing as part and parcel of the
01:58 house.
01:59 Basically, the only best thing that they can do is that we will be able to install solar,
02:05 but we have to wait for you to apply first, and then you come back to me and talk.
02:10 So what we want to focus in the early parts is to allow more and more of such integrated
02:21 large-scale urban development to include solar in their whole pricing package, individual
02:31 rooftop.
02:34 I think that will come as and when the single market aggregator becomes operational.
02:40 If you look in certain states in Australia, in Germany, rooftop solar has even surpassed
02:46 those installations.
02:47 So I think that's where we see now in Malaysia we haven't really tapped, because when you
02:51 talk about large-scale solar, there are certain limitations of land size and the cost of land.
02:56 The pioneer one that's going to be done with Simon Dhabi will be at Elmina and Bandar Bukit
03:03 Raja.
03:04 So that one is up to 10 kilowatt solar capacity per house.
03:10 So it's 4.5 megawatts across 450 homes.
03:14 That's the pilot.
03:16 We set the ambition because the energy target for 2050 is very much tied to our net zero
03:26 commitment.
03:27 And that is part of the national energy policy, which is binding to the government.
03:34 Everything else has to be adjusted to achieve that.
03:38 So when we push the target from 40% to 70%, it will filter through over the years, and
03:46 it will govern how energy commission decides what kind of capacity can be allowed to be
03:54 installed.
03:55 The problem is, if you look at, for example, today's announcements with Gazana in Karmas,
04:02 it's one gigawatt.
04:04 And one gigawatt is huge compared to the largest capacity that we have now, which is around
04:12 70 megawatt.
04:13 I think that's easily about 15 times of the size.
04:16 So we have to go through this stage of seeing how the market responds to net zero, because
04:23 that will allow us a much better assessment of the supply and demand.
04:30 So that's why, if the price is asking what is going, I think we take the bold step of
04:36 pitching that we want to lead the energy transition.
04:40 And that will spur the supply and demand, and that will allow us to be able to map the
04:48 planning and the numbers better for 5, 10, 15 years.
04:52 [BLANK_AUDIO]
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