00:00As tensions in the Middle East continue to escalate, energy is no longer just about short-term supply of or
00:07fluctuating oil prices like this.
00:10Our stark reminder that energy security today is about resilience, the ability of a country to withstand external shocks and
00:18maintain stability.
00:19And in that context, that shift toward renewable energy is no longer just a sustainability agenda, but increasingly a strategic
00:27necessity.
00:28So could moments like this become a turning point in how countries like Malaysia rethink and strengthen their energy systems
00:36for the future?
00:37Joining us today, this morning, to unpack this is Ko Chuan Zen, Group CEO and co-founder Plus Sex Energy.
00:44Ko Chuan, good morning. Thank you so much for joining us.
00:48With the conflict in Middle East, US-Iran is escalating now.
00:52How should countries rethink energy security beyond just a short-term supply concerns?
00:58I think the country needs to broaden the definition of energy security.
01:04So in the past, we focused mainly on whether do we have enough fuel supply.
01:10But today, especially with today's war, we found out that energy security also means how resilient we are, the affordability
01:19and also the self-reliance.
01:21So especially when a geopolitical conflict disrupts the key supply chain, it shows how vulnerable a fuel-importing country can
01:32be.
01:33So I think the real answer here is to build a more diversified system with more domestic, I would say,
01:40renewable energy infrastructures, storage, a stronger grid, and also a better regional cooperation, for example, like ASEAN grid.
01:50So I think these are those are the few important factors for us to look into this because I think
01:56the real key things here is about today, the real energy security is not only just about the supply security,
02:04it's about the resilient security as what you highlighted just now.
02:07Yeah, and this is a complex and also a complex issue in that sense in terms of implementing this transition.
02:15But does this crisis reinforce the urgency for countries like Malaysia to accelerate renewable energy and also at the same
02:22time reduce dependence on external energy shocks, even though it is not an easy task to do?
02:29Yeah, definitely.
02:31I think every crisis, it will always remind us of something.
02:36And this crisis definitely is a very strong reminder that countries like Malaysia, we cannot depend too much heavily on
02:42excellent fuel market.
02:43Yeah, officially, Malaysia energy fabrication, not that about half of our power generation, it all depends on the import fuel,
02:51especially on the coal and also the gas, which expose us to price and also the currency frustrations.
02:57So when we accelerate solar storage and other local clean energy resources, we are not only reducing the carbon emission,
03:06it's not just for ESG, Argentina itself.
03:08But I think today we see a different meaning of it, which is we are here to protect our country
03:14economy from the excellent stock.
03:16That's why we are able to see that some couple of countries, for example, like China, they are spending like
03:21about 30 years to build a whole country infrastructures.
03:24And during this war, they are one of them who have a very least negative impact.
03:31I mean, like the rest of other countries who highly depends on the energy, the fuel import from excellent country.
03:39So I think today renewable energy is not just about a clean energy policy, it's not just about a green
03:48policy.
03:48It's no longer just about a climate change action plan, but it's also a national risk management.
03:58A national risk management.
04:00It's very interesting that you brought that up because you give example for China.
04:03China has one of the biggest countries with bigger scale in terms of economic background and the ability and capacity.
04:11It took them 30 years to build the infrastructures that you mentioned just now.
04:15What are some of the biggest gaps for Malaysia especially still needs to address if it wants to, you know,
04:21renewables energy to play a stronger role in national energy security?
04:30I think Malaysia, actually, we do have quite a clear target, including like 40% of renewable energy capacity by
04:382035 and 70% by 2050.
04:42But in order to make renewable energy as a stronger pillar for national energy security, we need to close some
04:49server gap and also the obstacle.
04:52First, it's about our grid readiness because more renewable energy, actually, we need more flexible and also more modern grid.
05:00So which means the grid, actually, we need to upgrade it to a more smarter grid, like smart grid.
05:05I think this is what Malaysia, especially at Peninsula, that what we are working out strongly right now.
05:12I think it's something more important and we need to close the gap as soon as possible.
05:16And the second part is about energy storage.
05:19Yeah, so energy storage, I would say, is a kind of the new agenda just happened, I would say, since
05:25last year.
05:26And this year, we started to see there's a lot of different company or let's say a lot of these
05:34entities,
05:35even though the end user from home, from factory, started to deploy energy storage, even though at a grid level.
05:42So energy storage is essential to manage those intimacy and also to manage the demand set and also supply set,
05:50especially when one country is heavily depends on renewable energy.
05:54The whole country, the grid infrastructures will be quite uncertain if, let's say, we don't have a storage as a
06:02capacitor role to manage the demand set and the supply set in a smarter way.
06:08So the second pillar for energy storage is definitely a must.
06:12The country needs to come out even refill more, a couple of those incentives, probably to stimulate the market to
06:19have more adoption of energy storage.
06:21Yeah, so this is the second part.
06:23The third part is about the execution speed, including the approval, the interconnections, the project delivery.
06:30Yeah, I think this is quite there.
06:33Just right now, actually, we need this to get even faster.
06:37Yeah.
06:37And also, the skill has to be even bigger.
06:39And last but not least, we need to have stronger market design on the economic side and also to get
06:46more demand on it.
06:46Because I think for this national agenda, it's not just on the government side, but it's also we need to
06:52design some policy on the private side.
06:54For the market, we'd like to invest in it.
06:56And also, the regional connectivity for the entire system, as what I mentioned just now, like ASEAN grid.
07:03I think right now, we see more meaningful for it.
07:05Yeah, so it can operate like Europe.
07:07Yeah, that's one of the examples.
07:09Yeah.
07:10So that's why I think those are something what we see is very important for us.
07:15You mentioned about the market willingness and also the market openness in terms of adapting towards this transition.
07:23Where are we in terms of that?
07:25Because if we have a policy like NETR, for example, at the end of the day, this private sector should
07:30also take actions in that sense.
07:33I believe they do take actions.
07:35But where are we in terms of that?
07:37Are we on the right track?
07:40I would say we are just started because in terms of a smart grid, it highly depends on the national
07:47grid operator like TNB.
07:49In terms of energy storage, it just gets that tenders to install this best energy storage system at the grid
07:57level.
07:58And on the factory side, it just happened like us, we have like up to about 100 megawatt hours of
08:05best going to install and also under construction in a couple of those buildings, factories, or even though like Malaysia
08:14airport at the same time.
08:17I think it's there, just we need more awareness because of this energy crisis, we have to ride on it,
08:23to leverage on it, and also to get more people to see it's important.
08:28And also the concept of a security and energy resilience structure is what we mentioned just now.
08:33Because this crisis is not just harm on a country basis, it's also it can impact on the factory or
08:40this company basis, even though for your home as well.
08:45Just imagine if let's say today, your house comes with solar and also the battery storage.
08:50Yeah, and let's say for example, you're driving EV, then basically you can self-sustain.
08:54You are almost reaching the energy independence.
08:56Yeah, you are not really highly depends on, you will get interrupted by this global economic crisis.
09:04So energy independence is also one of the meaning of how we can see why we should need to accelerate
09:10the whole energy transition.
09:12You mentioned just now that the whole transition is not just about ESG anymore.
09:19It's about country security basically in terms of having energy supply and all that.
09:25But do you think that a crisis like this become a turning point for governments and industries to treat clean
09:32energy not just as climate agenda, but rather as a strategic necessity?
09:39Yeah, this definitely is a crisis to be a turning point, a tipping point potentially, especially compared with the Ukraine
09:48war that's happened a few years back.
09:49I think this run actually is even the serious level, the impact level is even much higher.
09:55So we have to utilize this turning point.
09:58Yeah.
09:59And also I will say, clean energy, yeah, we always discuss under those ESG agenda, climate change, sustainability.
10:08But I think the key work here is about sustainability.
10:10It's not just about the global zero emission become sustainability.
10:15It's also, it will impact the operation of a country and operation of an organization, yeah, and operation for even
10:23though for a house.
10:24So during crisis, people will see immediately how this business and national security is.
10:31And it's important because without all this crisis, I think people for us, yeah, we no pain, no gain.
10:40I mean, no pain, no alert, and then you won't really have action.
10:43So I think it's a kind of the wake-up call for us to have more diversified energy resources.
10:48And definitely it's a turning point.
10:50So I think for government and also the industry, definitely right now, especially this year, yeah, we have to really
10:55speed up.
10:56Yeah, it's like another COVID, but not really like treating the virus.
11:01But it's about the national climate change, national energy security agenda.
11:07Besides NETR, what else that we can do more and focus, yeah, to build up our energy, clean energy infrastructures,
11:16to make Malaysia to be more resilient and even though more competitive and even though even more strong in self
11:24-sustained in energy security infrastructures.
11:26Yeah.
11:27Yeah.
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