Latest news with #CorporateRenewableEnergySupplyScheme
The Sun
26-05-2025
- Business
- The Sun
ASEAN needs over US$3 trillion investment for energy transition by 2050
KUALA LUMPUR: Malaysia has urged ASEAN member states to embrace a fundamental shift in financing strategies to achieve the region's ambitious energy transition goals, with cumulative investments estimated at over US$3 trillion by 2050. Deputy Prime Minister Datuk Seri Fadillah Yusof said Malaysia alone requires more than US$143 billion to meet its renewable energy (RE) targets under the National Energy Transition Roadmap. 'These figures underscore a simple but profound truth: public finance alone is insufficient. 'Therefore, it is imperative for governments across the region to create a robust enabling environment that catalyses private investment, both domestic and international, through coordinated policy reform and innovative financial instruments,' he said. In his keynote address at the 'Energy Transition Meeting in ASEAN: Fostering Regional Cooperation' conference here today, Fadillah, who is also the Energy Transition and Water Transformation Minister, said these instruments include blended finance mechanisms and public guarantees to de-risk early-stage RE projects. He added that ASEAN must also strengthen its capital markets through the issuance of green bonds, Islamic finance instruments such as sukuk, and sustainability-linked loans to channel capital into clean energy projects. 'Carbon pricing frameworks that reflect the real cost of emissions are essential to incentivise the shift toward low-carbon technologies. 'Digitalisation of the energy ecosystem, including smart grids, artificial intelligence-based forecasting tools, and demand-side management systems, will play a crucial role in enhancing system flexibility and efficiency across the region,' he said. At the national level, Fadillah said Malaysia has already begun aligning its policies and financing landscape to support this transformation. 'As a trading nation, we (Malaysia) recognise that competitiveness and climate ambition must go hand in hand. The Corporate Renewable Energy Supply Scheme enables large electricity consumers to directly source RE from private developers, offering a market-driven route to decarbonisation. 'The Low Carbon Energy Generation Programme introduces a Contract-for-Difference mechanism to improve the bankability of renewable projects and offer price certainty for investors, while Bank Negara Malaysia's Low Carbon Transition Facility provides concessional financing to small and medium-sized enterprises investing in clean technologies,' he said. Fadillah emphasised that efforts to enable a region-wide energy transition must be matched by regional alignment. 'A well-integrated ASEAN energy market, supported by common investment frameworks, harmonised technical standards, and coordinated green finance mechanisms, will unlock economies of scale and reduce capital costs,' he said.
The Sun
26-05-2025
- Business
- The Sun
ASEAN needs over US$3 trillion investment for energy transition
KUALA LUMPUR: Malaysia has urged ASEAN member states to embrace a fundamental shift in financing strategies to achieve the region's ambitious energy transition goals, with cumulative investments estimated at over US$3 trillion by 2050. Deputy Prime Minister Datuk Seri Fadillah Yusof said Malaysia alone requires more than US$143 billion to meet its renewable energy (RE) targets under the National Energy Transition Roadmap. 'These figures underscore a simple but profound truth: public finance alone is insufficient. 'Therefore, it is imperative for governments across the region to create a robust enabling environment that catalyses private investment, both domestic and international, through coordinated policy reform and innovative financial instruments,' he said. In his keynote address at the 'Energy Transition Meeting in ASEAN: Fostering Regional Cooperation' conference here today, Fadillah, who is also the Energy Transition and Water Transformation Minister, said these instruments include blended finance mechanisms and public guarantees to de-risk early-stage RE projects. He added that ASEAN must also strengthen its capital markets through the issuance of green bonds, Islamic finance instruments such as sukuk, and sustainability-linked loans to channel capital into clean energy projects. 'Carbon pricing frameworks that reflect the real cost of emissions are essential to incentivise the shift toward low-carbon technologies. 'Digitalisation of the energy ecosystem, including smart grids, artificial intelligence-based forecasting tools, and demand-side management systems, will play a crucial role in enhancing system flexibility and efficiency across the region,' he said. At the national level, Fadillah said Malaysia has already begun aligning its policies and financing landscape to support this transformation. 'As a trading nation, we (Malaysia) recognise that competitiveness and climate ambition must go hand in hand. The Corporate Renewable Energy Supply Scheme enables large electricity consumers to directly source RE from private developers, offering a market-driven route to decarbonisation. 'The Low Carbon Energy Generation Programme introduces a Contract-for-Difference mechanism to improve the bankability of renewable projects and offer price certainty for investors, while Bank Negara Malaysia's Low Carbon Transition Facility provides concessional financing to small and medium-sized enterprises investing in clean technologies,' he said. Fadillah emphasised that efforts to enable a region-wide energy transition must be matched by regional alignment. 'A well-integrated ASEAN energy market, supported by common investment frameworks, harmonised technical standards, and coordinated green finance mechanisms, will unlock economies of scale and reduce capital costs,' he said.
The Star
22-05-2025
- Business
- The Star
Water tariff revision potential catalyst for Ranhill
PETALING JAYA: The market outlook for Ranhill Utilities Bhd remains mixed, as the company's recent results again missed most brokerage firms and consensus expectations. MIDF Research in a report said it maintained a 'sell' call on Ranhill with a lower target price of RM1.02 per share after trimming its earnings estimates due to the cost overrun at Ranhill Worley Sdn Bhd (RWSB). 'While the entry of a strong controlling shareholder in YTL Power is one that could yield synergistic benefits due to its expertise in the water sector, we view that the strong run-up in Ranhill's share price since April 2024 values it at a stretched 24.2 times of financial year 2026 (FY26) price-to-earnings ratio as compared to a historical mean of 20 times and a compressed dividend yield of only 3.1%,' it noted. The research house also expects Ranhill SAJ Sdn Bhd to continue contributing strongly to the company's earnings moving forward, attributable to the data centre (DC) growth in Johor and the upcoming economic growth prospects from the Johor-Singapore Special Economic Zone (SEZ) and Special Financial Zone. 'We understand that the group is working closely with YTL Power and the state government in identifying new water resources and in restructuring the tariffs,' added MIDF Research. Given Ranhill's results underperformance, TA Research said it has trimmed Ranhill's FY25-FY26 earnings by 15% and 1% respectively, mainly to reflect the cost overrun at RWSB. On the water segment, the brokerage said Johor would benefit from the influx of DC infrastructure, in part, given spillover demand from Singapore. 'As Johor's source-to-tap water supply operator, Ranhill is expected to benefit from increased water demand from DCs for cooling purposes,' it noted. TA Research also gathered that the National Water Services Commission is currently reviewing water tariff for the non-domestic sector, in particular for high consumption users, including the DC industry. 'Should it materialise, the tariff revision could be a positive catalyst for Ranhill,' TA Research pointed out. As for the power segment, the research house said Ranhill had proposed an extension to the power purchase agreement for its 190MW Teluk Salut Power Plant beyond its existing concession term that expires in 2029 to address the growing energy demand in Sabah. Ranhill is also looking to participate in the Corporate Renewable Energy Supply Scheme introduced by the Energy Transition and Water Transformation Ministry (Petra) which allows corporate consumers access to green electricity by procuring green electricity supply directly from a renewable energy producer. YTL Power, the group's major shareholder, has plans to develop a 500MW solar farm at its YTL Johor Data Centre Park in Kulai. 'We do not rule out possibilities of this project being parked under Ranhill, which could provide another catalyst for the group further out.' Despite the research house's downward tweak to Ranhill's earnings, it has raised the target price to RM1.40 as 'we reduce the risk premium for 80%-owned Ranhill SAJ Sdn Bhd in our valuations'. This is on the back of a potentially more favourable regulatory environment, which is more receptive to tariff increases that better reflects industry capex requirements. TA Research said 'In line with this, and following share price retracement in the past week, we upgrade Ranhill to a 'buy' from 'sell' previously.' Meanwhile, RHB Research said the catalysts for Ranhill include strong water demand in Johor in the coming years backed by industrial investments namely in DCs, manufacturing plants which could be part of the Johor-Singapore SEZ and Petra to introduce a new water tariff category for DCs. The research house, which has a 'buy' call on the stock, has kept its target price at RM1.37.
The Star
21-05-2025
- Business
- The Star
Solarvest order book to surpass RM2bil in FY26
Solarvest executive director and group chief executive officer Davis Chong Chun Shiong. PETALING JAYA: Solarvest Holdings Bhd executive director and group CEO Davis Chong Chun Shiong is confident the clean energy expert's order book will cross the RM2bil mark in financial year 2026 (FY26). As he reviewed the final quarter of the group's 2025 financial year, Chong said the feat will be supported by additional fifth large scale solar (LSS5) contracts, anticipated LSS5+ award, as well as active participation in solar battery energy storage systems and upcoming LSS6 tenders in the second quarter of financial year 2025 (2Q25) and 3Q25 of this calendar year. 'In light of the potential rise in Malaysia's electricity tariffs in July, we also foresee improved project feasibility under the Corporate Renewable Energy Supply Scheme. 'This creates compelling opportunities for Solarvest to scale beyond our RM2bil order book target,' he said in a statement. 'The key drivers of our revenue growth include ongoing engineering, procurement, construction, and commissioning projects under the Corporate Green Power Programme and LSS5 programmes. 'Beyond utility scale projects, the commercial and industrial segment is also expected to remain strong, with approximately RM200mil in annual replenishments.' As at March 31, 2025, the group's unbilled order book stood at RM1.24bil. In the fourth quarter of the financial year ended March 31, 2025 (4Q25), Solavest posted a net profit of RM20.53bil, a 165% increase over the net profit of RM7.73mil in the year-ago quarter. The group's revenue rose to RM224.87mil from RM96.9mil in the previous comparative quarter. Earnings per share climbed to 2.82 sen from 1.15 sen previously. Over the 12-month period, Solarvest's net profit rose to RM51.94mil from RM32.63mil in FY24, while revenue increased to RM536.82mil from RM497.03mil in the previous year. In a filing with Bursa Malaysia on its latest results, Solarvest said the outlook for Malaysia's renewable energy (RE) industry remains positive, driven by the government's commitment to increasing RE capacity to 70% of the national energy mix and achieving net-zero emissions by 2050. 'The power sector is projected to raise its RE capacity to 31% by 2025 and 40% by 2035, with solar energy expected to become the dominant RE source.' The company noted that Malaysia's renewable energy landscape continues to gain momentum with a series of new initiatives aimed at expanding solar power and energy storage capacity. 'Following the completion of the LSS5 and LSS5+ bidding rounds, the government has issued the Request for Proposal in May 2025 for the MyBeST programme slated to achieve commercial operation in 2027. 'The programme targets the deployment of 400MWh/1,600MWh of storage capacity across Peninsular Malaysia and opens participation to third-party developers.' Solarvest said this is expected to enhance grid stability and flexibility, supporting Malaysia's transition towards a higher share of renewable energy. 'All these initiatives underline the government's commitment to RE and are expected to benefit local RE developers and engineering, procurement, construction and commissioning players. 'Barring any unforeseen circumstances, the board is of the view that the group's overall performance would remain satisfactory for the coming financial year.'
The Star
21-05-2025
- Business
- The Star
Solarvest optimistic orderbook to surpass RM2bil in FY26
KUALA LUMPUR: Solarvest Holdings Bhd executive director and group CEO Davis Chong Chun Shiong is confident the clean energy expert's orderbook will cross the RM2bil mark in FY26. As he reviewed the final quarter of the group's 2025 financial year, Chong said the feat will be supported by additional fifth large scale solar (LSS5) contracts, anticipated LSS5+ award, as well as active participation in solar battery energy storage systems (BESS) and upcoming LSS6 tenders in Q2 and Q3 of this calendar year. "In light of the potential rise in Malaysia's electricity tariffs in July, we also foresee improved project feasibility under the Corporate Renewable Energy Supply Scheme (CRESS). This creates compelling opportunities for Solarvest to scale beyond our RM2bil orderbook target,' he said in a statement. 'The key drivers of our revenue growth include ongoing engineering, procurement, construction, and commissioning projects under the Corporate Green Power Programme and LSS5 programmes. Beyond utility scale projects, the commercial and industrial segment is also expected to remain strong, with approximately RM200mil in annual replenishments.' As at March 31, 2025, the group's unbilled order book stood at RM1.24bil. In the fourth quarter of the financial year ended March 31, 2025 (4QFY25), Solavest posted a net profit of RM20.53bil, a 165% increase over the net profit of RM7.73mil in the year-ago quarter. The group's revenue rose to RM224.87mil from RM96.9mil in the previous comparative quarter. Earnings per share climbed to 2.82 sen from 1.15 sen previously. Over the 12-month period, Solarvest's net profit rose to RM51.94mil from RM32.63mil in FY24, while revenue increased to RM536.82mil from RM497.03mil in the previous year.
