UEM Lestra Powers Malaysia’s Energy Security Race
Whole-of-Nation Effort
Malaysia is on an urgent mission to revamp its energy strategy, with climate change and trillion-ringgit opportunities in environmentally friendly industries on the line. Prime Minister Anwar Ibrahim has emphasized the country’s commitment to making sure that by 2050, net zero will be achieved, and the only way to do it is through renewable energy. The National Energy Transition Roadmap (NETR) aims to secure a 70% renewable energy target by 2050, a considerable leap from the current 13.3% renewable energy share in Malaysia’s energy mix.
Economic and Environmental Impact of Renewable Energy
Beyond reducing carbon emissions, Malaysia’s shift to renewable energy holds potential for economic growth. The transition to RE opens doors to job creation across emerging sectors, such as powering smart cities, and even traditional sectors, such as manufacturing and logistics, as they become greener. Cenergi, a subsidiary of UEM Lestra, has focused on bioenergy, particularly biogas from Malaysia’s palm oil sector. Hairol Azizi Tajudin, group CEO of Cenergi, highlighted a significant opportunity for expansion.
Key Strategies and Collaborative Efforts
To oversee and coordinate the RE transition, Malaysia recently established the energy transition and water transformation ministry. UEM Lestra is making significant strides for both the environment and the economy through its one-gigawatt solar project, according to Harman Faiz Habib Muhamad, CEO of UEM Lestra. The company is also actively pursuing biogas, biomass, and mini-hydro to diversify Malaysia’s RE portfolio.
Balancing the Transition: Costs, Trade-Offs, and Long-Term Goals
Achieving Malaysia’s RE goals requires navigating financial costs and assessing the balance between different energy sources. While solar and biogas are integral to the strategy, nuclear energy remains under consideration as a low-carbon solution. The government is also reducing fossil fuel subsidies and planning to introduce a carbon tax to support the sector.
The Path Ahead: Bridging the Gap
The pathway to 70% RE by 2050 depends on the efforts of companies like UEM Lestra, Cenergi, TNB, and Petronas, which are driving renewable projects while contributing to job creation, rural development, and green industry growth. As Harman explained, the collective impact of these efforts will create a tipping point: “All these things will naturally lead to the point where the people and businesses will realise that going at the status quo is just not going to work.”
Conclusion
Malaysia’s renewable energy journey faces challenges, including infrastructure demands and cost management, but the expected economic and environmental benefits position the country to secure a sustainable energy future.
FAQs
Q: What is Malaysia’s renewable energy target by 2050?
A: Malaysia aims to secure a 70% renewable energy target by 2050.
Q: What are the key strategies for achieving Malaysia’s RE goals?
A: The key strategies include diversifying the energy mix, increasing the use of renewable energy sources, and reducing fossil fuel subsidies.
Q: What role does UEM Lestra play in Malaysia’s renewable energy transition?
A: UEM Lestra is a government-linked company that is driving renewable energy projects, including solar and biogas, and is actively pursuing biogas, biomass, and mini-hydro to diversify Malaysia’s RE portfolio.