Govt to allocate RM2bil for National Energy Transition Facility, says PM

  • last year
The government will allocate RM2bil as seed funding for the National Energy Transition Facility (NETF), says Datuk Seri Anwar Ibrahim.

In his speech at the launch of Phase 2 of the National Energy Transition Roadmap (NETR), the Prime Minister on Tuesday (Aug 29) said the allocation is important given the state of Malaysia’s young decarbonisation technologies.

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Transcript
00:00 Energy efficiency, as one of the energy transition levers, offers effective long-term solutions
00:13 to manage our energy consumption, thus reducing carbon emissions.
00:19 The government will launch a major retrofit programme to enhance energy efficiency in
00:26 government buildings.
00:28 In this regard, an ESCO energy service companies platform will be established to connect private
00:37 ESCOs, which are mainly SMEs, with government projects.
00:44 The central role of the platform would be to serve as an intermediary that pulls government
00:50 building retrofitting projects and encourages public-private coordination in ESCO markets.
00:59 In May this year, the government set out an ambitious target to achieve 70% renewable
01:09 energy installed capacity by 2050 and lifted the ban on cross-border trade and renewable
01:18 energy.
01:19 A renewable energy exchange will be established.
01:23 Originally it was supposed to be at the end of the year, but Rafizieh insisted it should
01:26 be earlier.
01:27 So that will act as a market aggregator that will enable price discovery and monetise excess
01:35 power.
01:36 As the paramount challenge in energy transition is financing, it is estimated that an investment
01:43 of at least 1.5 trillion ringgit between 2023 and 2050 is needed to enable responsible energy
01:52 transition.
01:53 Within this decade alone, the government requires between 60 billion and 90 billion ringgit
02:00 to be allocated for crucial projects, among others expansion of public transportation,
02:07 strengthening grid infrastructure and reskilling of human capital.
02:13 Considering Malaysia's current state of mature decarbonisation technologies, our progress
02:19 will significantly hinge on alternative energy sources and robust regional and international
02:27 collaboration.
02:29 In this regard, the government will allocate 2 billion ringgit as seed fund for the National
02:36 Energy Transition Facility.
02:39 This facility will enable catalytic blended finance to ensure a seamless flow of financial
02:47 resources towards energy transition projects that are marginally bankable or yielding below
02:55 market returns.
02:56 For example, investment in EV value chain, hydrogen and CCUS technologies.
03:04 The National Energy Council will be activated to ensure holistic energy planning and policy
03:10 development while monitoring progress of the NETR.
03:14 Thank you.

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