Rafizi Launches Energy Initiative, Hopes To Attract RM1.85 Trillion In Investment
Minister of Economy Rafizi Ramli launched the first phase of the National Energy Transition Roadmap (NETR) on 27 July
Rafizi explained that as the global energy sector undergoes a rapid transformation, the government is developing the NETR to accelerate Malaysia's energy transition.
"The launch of the NETR marks an important change in our thinking.
"It is not only a document that contains interim measures to meet our net-zero target, but it is (also) a combination of strategies and initiatives that could transform our economy, livelihoods, and our place in the world," said Rafizi at the official launch of the NETR at Grand Hyatt Hotel Kuala Lumpur.
Phase 1 of the NETR detailed 10 flagship catalyst projects and initiatives that could open up energy transition investment opportunities between RM435 billion to RM1.85 trillion by 2050
The NETR currently has a total committed investment of RM25 billion, and is estimated to create 23,000 high-impact, high-quality jobs, as well as reduce 10,000 gigagrams of carbon dioxide equivalent annually.
Rafizi also highlighted that there are six key energy transition levers under the NETR, which are energy efficiency, renewable energy, hydrogen, bioenergy, green mobility, and carbon capture, utilisation, and storage (CCUS).
Each of these projects and initiatives will be championed by various government ministries, as well as companies and brands, such as the Ministry of Transport, Sime Darby Property, Tenaga Nasional Berhad, Khazanah Nasional Berhad, PETRONAS, and more
In explaining the initiatives, Rafizi shared that a Memorandum of Understanding (MoU) has been signed between UEM Group Berhad — a wholly-owned subsidiary of Khazanah Nasional Berhad — and ITRAMAS Corporation Sdn Bhd. They will oversee a large-scale integrated sustainable development spanning the entire energy supply chain, from the generation and storage of energy to efficient energy consumption, and more.
At 1 gigawatt (GW), this hybrid solar photovoltaic (PV) power plant is the largest of its kind in Southeast Asia.
"The scale of our ambition has attracted high-profile global investments from major economic blocs totalling RM6 billion. That Memorandum of Understanding shall be inked today," said Rafizi.
Other high-impact projects that will be implemented include:
- Hydro-floating solar: TNB's hydro dam reservoir with a 2500 MW potential that will increase RE generation close to 24-hour availability
- Residential solar: Construction of 4.5 MW of rooftop solar on residential homes through rooftop leasing, with up to 10 kW capacity per house
- Hydrogen: Implementation of three integrated projects in Sarawak, including a green hydrogen production plant in Kuching (domestic use) and two plants in Bintulu (export use)
- Green mobility: 10,000 EV charging stations on highways and commercial buildings, as well as electrification of first- and last-mile public transportation
- CCUS: Petronas-led catalyst projects in Kasawari and Lang Lebah high-CO2 gas fields
- and more
With the NETR, Rafizi also believes it is a real opportunity for Malaysia to lead the way in global energy within Southeast Asia
"As a nation, we are used to falling and lagging behind. However, we have taken a slightly different approach. The NETR represents a different way of thinking about our economy and livelihood.
"It is the administration's effort to change the economics of RE, so that we could rapidly scale up our installed capacity with the right infrastructure and technology.
"As we put the pieces together leading to the launch of Part 2 of the NETR, we will be working with you to implement projects that are both good for the environment and good for the economy," said Rafizi.
Part 2 of the NETR will be unveiled in August, with a focus on establishing the low-carbon pathway, national energy mix, targets for emission reduction, and the steps required for energy transition
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