KUALA LUMPUR: The power sector welcomes new players into the renewable energy (RE) industry to ensure the industry is robust, and able to contribute significantly to the economy and reduce the cost of RE.
Energy, Green Technology and Water (KeTTHA) Minister Datuk Seri Dr Maximus Ongkili said Malaysia had been doing well in large-scale solar power generation as more players had entered the fray.
He said this in response to Petroliam Nasional Bhd’s (Petronas) consideration to venture into RE to stay relevant in the global energy industry.
“We have managed to do well with large-scale solar for example, where players are selected through competitive bidding and we have seen the price going down quite significantly.
"This is good for the solar and RE industry in Malaysia. However, Petronas needs to be mindful of the intense competition," he told the New Straits Times.
Petronas president and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin had on Monday (Sept 25) told NST Business that the company could venture into solar, wind or other new energy sources, but the matter was still in the evaluation stage.
Maximus said RE is “the new order of the energy sector” and that the most important factor influencing it was the sustainability and resilience of players while keeping the cost down.
“There are many new areas of RE that are still at the early stage such as hydrogen technology, ocean thermal, wave energy, and battery technology.
“KeTTHA is looking at means to push forward these new areas more aggressively,” he added.
Meanwhile, Reach Energy Bhd chief executive Shahul Hamid Mohd Ismail lauded the move, and said that Petronas is fully integrated into many sectors of the energy business.
“It makes good business sense to have some balance of renewables and non-renewables (fossil fuels) in their portfolio.
“They should focus on power generation via solar energy (photovoltaic) and bio-mass as these are abundant in our part of the world.
“These are better for the environment as compared to using coal fuel or even nuclear which is now a taboo after the Japanese disaster in Fukushima,” he pointed out.
With Petronas’ involvement in the RE industry, Shahul said the country could reduce dependence on fossil fuels power generation.
“We are running out of gas in Malaysia and now into importing gas. We would be a model for RE in this part of the world (if Petronas’ plan pans out).
“Petronas has the resources to promote the RE sector and take the lead in the RE arena globally,” he added.