The reform of the energy sector is crucial towards the goal of reducing Malaysia’s greenhouse gas emissions and should be prioritized. YB Shamsul Anuar Nasarah will lead the Ministry of Energy and Natural Resources. These are three important reforms for the energy sector he should pursue.

Merge SEDA into ST

The Sustainable Energy Development Authority (SEDA) should be merged into the Energy Commission (ST) to ensure policy cohesion. Malaysia’s energy sector has conflicting policies whereby SEDA is giving out renewable energy quotas but ST continues to approve fossil fuel power stations. SEDA is also unable to resolve renewable energy connectivity issues because the energy grid falls under ST’s jurisdiction.

TNB nust be Responsible for Renewable Energy Connection 

There is huge potential for palm oil mill effluent (POME) and water streams (mini hydro) as renewable energy sources. However, the potential sites are located far from the national grid. The cost to connect renewable energy to the national grid by TNB must be borne by the renewable energy developer. The connection cost should instead be borne by TNB since the connection assets will be owned by TNB.

Allow Third Party Electricity Grid Access

Under Net Energy Metering (NEM), the point for consumption and production of RE must be at the same place. TNB must open the grid to third party access allowing an entity to produce and consume electricity from different points throughout the grid.

For example, a Sime Darby plantation could generate electricity from their POME to power their industries and automotive showrooms. In return, Sime Darby could pay a “transmission charge” of RM0.124 per kWh instead RM0.337kWh. These huge savings will motivate corporations with large electricity demand to invest in renewable energy plants.

Written by:

SHARAN RAJ

Central Committee
Environmental & Climate Crisis Bureau 
Parti Sosialis Malaysia (PSM)