Renewable Energy Certs an option: Expert

Daily Express

05-05-2025

Published on: Monday, May 05, 2025
Published on: Mon, May 05, 2025
By: Sherell Jeffrey Text Size: Nirinder and Nazliyah. Kota Kinabalu: Sabah's clean energy transition is not only benefiting the environment but could also create new economic opportunities through carbon credits and renewable energy certificates, according to electrical engineer, Nirinder Singh Johl. 'With the second-lowest carbon emissions from electricity in Malaysia, Sabah is well-positioned to capitalise on its cleaner energy mix, particularly as global businesses increasingly look to reduce their carbon footprint,' he said at the at the inaugural Sabah Renewable Energy Conference 2025's Panel Session 2 titled Overcoming Hurdles and Transforming Tomorrow: Sabah's Renewable Energy Transition Strategies. 'There has been a new standard on carbon credits for grid-connected energy storage. Probably Sabah could explore that,' he said, adding that it gives a bit of financial sense to having storage. The Asia CarbonX Change PLT Chief Executive Officer pointed out Sabah's environmental advantage, noting the significant difference in carbon emissions compared to Peninsular Malaysia. 'Peninsula is 0.75 tons of CO2 per megawatt. We do not have coal here. We took a chance, a stand some time ago as a result of which the grid emission factor of Sabah is 0.55 and Sarawak obviously lowest, 0.19,' he said. Renewable Energy Certificates (RECs) represent another opportunity for funding clean energy projects in the State. Nirinder described these as the block chain for the green market. 'Every time you generate one megawatt hour, you stop conventional energy production with the same amount. The one from renewable does not have carbon in it. 'REC is basically the currency for the renewable energy market,' he said. For Sabah to fully participate in this market, he suggested developing a local certification system. 'If Sabah wants to go, probably Sabah needs to have an issuer, a Sabah issuer or probably in Malaysia, we call it M-VAX. We call it S-VAX for Sabah issuer. This is how you brand yourself,' he said. He said the financial incentives are substantial, with RECs commanding different prices depending on market maturity and regulatory requirements. 'Solar RECs in Peninsular Malaysia cost USD5, while in Singapore they command USD65 due to their carbon market and compliance requirements. 'When taxation comes in here, the prices of RECs will go up, making it perfect sense to include in your financial model,' he said. Among his recommendations for Sabah's renewable energy development was aligning power purchase agreements with the actual lifespan of energy plants. 'If the economic life of a solar plant is 25 years, give them 25 years. A hydro is 32 years, then give them 33 years,' he said. Meanwhile, Talent Corporation Malaysia Berhad Sector Head of Industry Partnership Nazliyah Mohd Ali said the expansion of renewable energy is also creating demand for workers with specialised skills. 'Last year, we conducted 10 sectors of impact study for Artificial Intelligence, digital and green economy to understand what the impact to the Malaysian workforce is,' she said. 'Based on the findings, we understand that there is a need for energy-related skills like energy economists, energy traders, all those things are moving forward for the next three to five years. 'Based on the National Energy Transition Roadmap, we know that there are a need for 62,000 professionals in green technology, green field,' she said. To bridge the skills gap, TalentCorp has come up with the MyMahir Future Skills Talent Council and developed tailored programs. 'We developed curated programs, which are very much according to what industry wants. We want to see what the skills gap from the fresh graduate are and see what we can do to fit in the gap in terms of the skills,' she said. For those interested in exploring these career paths, she pointed to available resources online. 'This study, the impact study is actually available online. You can go to mymahir.my and you can actually download this copy. 'We have another separate platform for secondary and primary schools. If you have children, you can go to our platform and they can see interactive videos to understand what is actually done in layman terms for them to learn,' she said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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