KUALA LUMPUR: Malaysia needs an additional 1,500 to 2,000 megawatts (MW) of installed renewable energy (RE) capacity to reach its 35 per cent installed RE capacity target by 2030, said the Sustainable Energy Development Authority (Seda).
Seda chief strategy officer Saiful Hakim Abdul Rahman said the target is achievable, supported by various solar programmes, including the Large Scale Solar (LSS) programme, particularly LSS5, which offered a quota of two gigawatts (GW) or 2,000 MW of solar capacity.
He said that while Malaysia has ample solar resources and financing options to support RE projects, ensuring bankability and securing companies with strong financial capabilities remain challenges.
"Among other challenges is getting the connection to the grid because most of our resources are site-specific, so it depends on the availability of the grid at that location to connect to the resources.
"That is why Tenaga Nasional Bhd has been allocated about RM15 billion to increase their grid infrastructure to allow more interconnection and adoption of RE into the system," he told Bernama when visiting the national news agency's headquarters today.
In July, Deputy Prime Minister Datuk Seri Fadillah Yusof said Malaysia's installed RE capacity stood at nearly 32 per cent as of June, putting the country on track to achieve its 35 per cent target by 2030.
Meanwhile, commenting on RE-related incentives announced under the 2027 Budget, Saiful Hakim said the allocations would encourage more industry players to participate in the energy transition.
"The allocation provided by the government would help more industry players to participate in the energy transition by developing their own solar farms and then with the guarantee of takers of government buildings.
"At the same time, this will help us to accelerate the energy transition, and will increase the take-up of the RE in the country. So, we already set a target to achieve 70 per cent in 2050," he said.
Seda is a federal statutory body under the Ministry of Energy Transition and Public Utilities, responsible for administering and managing the implementation of the Feed-in Tariff (FiT) mechanism.
Saiful Hakim said the FiT mechanism enabled renewable energy players, including those in the small hydropower and bioenergy sectors, to develop power plants under allocated quotas.
He said Seda also supported the growing solar industry by developing training modules and collaborating with training partners, including MARA, Institut Kemahiran Belia Negara, state governments and private training institutes, to provide certified training and expand the pool of skilled workers needed by the industry.
"We also have our own research team that conducts research on emerging technologies and policies to identify the most suitable programmes, mechanisms and technologies to introduce in the country," he added.
Saiful Hakim was received by Bernama chief executive officer Datin Paduka Nur-ul Afida Kamaludin and Economic News Service deputy editor-in-chief Harlina Samson.
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