Malaysia promotes green energy transition

The Malaysian Government has increased the National Energy Transition Facility Fund allocation to over RM300 million ($60.80 million) in the 2025 budget from only RM100 million this year.

The increase is viewed as a right move to stimulate the implementation of larger and high-impact green energy projects, experts said.

Dr Mohamad Faiz Mohd Amin from the Faculty of Earth Sciences at Universiti Malaysia Kelantan (UMK) said that the allocation adequately met the funding requirements for the continuation of Malaysian green initiatives, such as the Kenyir Hybrid Hydro Floating Solar Farm in Hulu Terengganu, which can generate up to 1,000 megawatts (MW) of solar power, half of them to be dedicated to the first green hydrogen hub project in Terengganu.

The additional allocation also shows that the government is actively pursuing the energy transition goals through investments in the appropriate technology, he said.

Dr Tunku Muhammad Nizar Tunku Mansur, a renewable energy expert at Universiti Malaysia Perlis (UniMAP), said the 1,000 MW capacity of the second floating solar farm in Malaysia was substantial and had potential to meet high electricity demand.

The facility was expected to support between 200,000 and 300,000 households, depending on their electricity consumption.

It will definitely enhance electricity generation capacity through environmentally friendly methods, as it does not produce greenhouse gases, thus supporting the goal of achieving net zero emissions by 2050.

Electricity generation in Malaysia is still largely dominated by fossil fuels, especially natural gas and coal, resulting in considerable greenhouse gas emissions and environmental pollution.