KUALA LUMPUR: Malaysia will launch an Energy Exchange to support the export of renewable energy (RE) to neighbouring countries, says natural resources, environment and climate change minister Nik Nazmi Nik Ahmad.
He said the Energy Commission is currently drafting the necessary details to facilitate the exchange, which will be announced this year.
“The Energy Commission is preparing a working paper on this Energy Exchange for us to approve at the government level. We will look at some of the available models.
“Among the goals is to first secure enough RE to supply in the country and then ensure we get the best value for sales abroad and allow that value to be reinvested to boost the Malaysian RE sector,” he said at the Malaysian Industrial Development Finance (MIDF) roundtable today.
Nik Nazmi said to support the energy transition in the country, Malaysia should look at other sources of energy generation such as mini-scale hydropower.
“We should not look at large-scale hydropower, which is quite problematic for us to carry out because of the many trade-offs,” he said.
He emphasised that Malaysia needs to look at battery storage systems which will play an increasingly pivotal role to support cheaper RE prices.
Commenting on Malaysia imposing a carbon tax, he said the country would need tax reforms to support the industry.
“The finance ministry is taking the lead on that. When we talk about achieving a net-zero carbon emission target by 2050, the tax has to play a role because there will be a price to pay for carbon,” he said.