Malaysia to increase renewable energy generation to 20% by 2025
The Malaysian government recently announced that it aimed to increase the proportion of renewable energy generation to 20％ by 2025. The government named this target "the Malaysia Energy Supply Industry 2.0 (MESI 2.0) plan". In MESI 2.0, it is not compulsory for renewable energy companies to sell electricity to the national electric utility company Tenaga Nasional Berhad. Currently, the proportion of renewable energy generation is only 2%. The government estimates that the investment that is necessary to achieve the target is Malaysia Ringgit or MYR33 billion, equivalent to about USD7.9 billion and it intends to collaborate with private companies. The Malaysian government has been focusing on promotion of solar power projects these few years. The government issued a tender for a 500megawatt large-scale solar (LSS) project last February. The budget allocated for this project is MYR 2 billion. In this tender, a plan is proposed where a 100megawat power plant will sell electricity at MYR 0.1777 per kilowatt hour. The government views this price favorably as it is lower than the average cost of MYR 0.2322 at gas power plants in Malaysia. The results of the tender will be announced as early as within this year.