Latest news with #SAREC
Daily Express
06-05-2025
- Business
- Daily Express
Support for Sabah being No 1 in renewable energy
Published on: Tuesday, May 06, 2025 Published on: Tue, May 06, 2025 By: Larry Ralon Text Size: Arshad said Sabah has long been a key contributor to Malaysia's economy but the State's energy sector faces significant challenges that threaten its long-term sustainability. Kota Kinabalu: Malaysian Rating Corporation Berhad (MARC) remains committed to supporting Sabah's renewable energy aspirations through its expertise in credit ratings, green financing and investment facilitation, said Group Chief Executive Officer Arshad Mohamed Ismail. 'Together, let us position Sabah as Malaysia's premier renewable energy hub,' he said, at the Sabah Renewable Energy Conference (SAREC) 2025: Corridor to Transform Vision to Reality at Shangri-La Tanjung Aru Resort, recently. Arshad said Sabah has long been a key contributor to Malaysia's economy but the State's energy sector faces significant challenges that threaten its long-term sustainability. 'Electricity supply remains constrained, as reflected in Sabah's lower reserve margin compared to Peninsular Malaysia, underscoring the urgent need to expand generation capacity. 'The situation is further compounded by the State's heavy reliance on fossil fuels, with 86 per cent of power generation currently dependent on natural gas — a resource that is finite in the long term. 'Despite having an estimated 101GW of renewable energy potential, particularly in hydro, solar and biomass, only 7.3pc of Sabah's current energy mix is derived from renewable sources. This highlights the need for the State to move towards cleaner, more sustainable energy solutions.' Arshad said the launch of the Sabah Energy Roadmap and Master Plan 2040 (SE-RAMP 2040) marks a bold vision to achieve reliable, accessible, affordable and sustainable energy by 2040. With ambitious targets — 50pc renewable installed capacity by 2035, universal rural electrification by 2030 and carbon neutrality by 2050 — achieving these goals demands substantial investment and robust public-private partnerships. 'In this context, I am proud to share how MARC is uniquely positioned to support Sabah's sustainable energy goals. 'At MARC, we envision ourselves as your key partner in transforming today's challenges into tomorrow's opportunities. Our primary focus is on enabling a secure and sustainable energy future for Sabah by providing professional financial expertise to support these critical transitions,' he said. According to him, MARC is able to provide rigorous assessments of renewable energy projects. 'By meticulously rating green and sustainability-linked bonds and sukuk, we reinforce investor confidence and validate Sabah's strong AAA domestic credit profile. This robust foundation is essential to unlocking the capital required for large-scale renewable energy projects.' Pioneering in financing is at the heart of MARC's strategy, he said, adding the corporation is actively involved in rating and assessing innovative financial instruments such as Green Bonds, Sukuk and Loans, which channel investments directly into clean energy projects; Sustainability-Linked Bonds, Sukuk and Loans, where the terms of funding reward strong environmental performance; and Blended Finance Models, effectively combining public and private funds to reduce risk and optimise returns. To attract investors and drive the growth of its renewable energy sector, Arshad said Sabah must establish three key enablers. First, regulatory clarity is crucial — investors seek a stable and predictable policy environment. In this regard, the devolution of electricity and energy regulatory powers from the federal government to the Energy Commission of Sabah (ECoS) marks a significant step forward. This enables Sabah to take greater ownership of its energy resources and craft regulations that are better tailored to its specific needs and development goals. Second, infrastructure readiness plays a crucial role. The expansion of transmission lines, particularly the 275kV Southern Link, will improve grid stability and enable higher renewable energy penetration. Lastly, innovative financial instruments such as green sukuk, ESG-linked loans and blended finance models can offer alternative funding mechanisms. Arshad said Sabah's vast solar, hydro, and bioenergy resources, makes it an ideal destination for renewable energy investments. 'By aligning investment opportunities with national sustainability goals, Sabah can firmly establish itself as a leader in the green economy. 'Transitioning to renewable energy is more than an environmental commitment — it is an economic opportunity. The time to act is now.' * 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. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
25-04-2025
- Business
- Daily Express
Transition to renewable energy. Sabah still on target: Masidi
Published on: Friday, April 25, 2025 Published on: Fri, Apr 25, 2025 By: Larry Ralon Text Size: Masidi said a primary difficulty lies in maintaining an adequate energy margin while ramping up renewable capacity. Kota Kinabalu: Sabah is still on target to overcome challenges posed by the State's low electricity reserve margin that could impede its transition to renewable energy, said State Finance Minister Datuk Seri Masidi Manjun. 'There is a concern that the low reserve margin will hamper or delay Sabah's goal to achieve green energy. 'It is going to be tough, but I think we are still on target to overcome the challenges,' he told a press conference after representing the Chief Minister to officiate the Sabah Renewable Energy Conference (SAREC) 2025: Corridor to Transform Vision to Reality at Shangri-La Tanjung Aru Resort, here, Thursday. Masidi said a primary difficulty lies in maintaining an adequate energy margin while ramping up renewable capacity. 'There are a lot of issues that come with the need to have a solution in energy margin in Sabah, but I think we are still on track to sort it out.' He confirmed that Sabah is in an 'ongoing discussion' with Tenaga Nasional Berhad (TNB) to address the shortfall. 'We are always in consultation with them.' Masidi conceded that subsidies for energy — particularly during the transition to greener power — will require significant state expenditure. 'We understand the fact that in the case of Sabah, it involved a huge amount of money for subsidies, but again, good stuff costs a lot of money and it is one of them.' Asked about the possibility of coal-fired generation, Masidi said while the option remains under consideration, his personal stance is firmly against it. 'It is a personal stand that we should try to avoid it. There is so much at stake. When you talk about sustainability, you need to sacrifice something that can actually be good for the State, but we need to look long term.' Masidi stressed that long-term resilience requires Sabah to distinguish itself from other states by prioritising sustainability. 'The long term is about sustainability in the need for Sabah to put ourselves in a different sort of how people see us than other states in the country.' On the recent report that Sabah's natural gas reserves are depleting at 4 per cent per year, the Minister observed that resource depletion is inevitable worldwide. 'All natural gas reserves will eventually deplete, not just in Sabah, but also in other places in the world,' he said, adding the focus should be on maximising existing reserves while developing alternatives. 'The issue is how to maximise its utilisation to solve problems. There should be better considerations than just fearing about the fact that it is going to deplete. Looking ahead, he acknowledged the possibility of importing gas but emphasised mitigation through renewables. 'I cannot say how much is going to happen in the future, but I can only say that it can be mitigated by going into a sustainable source. That is exactly what the conference is all about today, so that we are less reliant on gas,' he said. 'Addressing a colourful analogy used by a former Minister,' Masidi clarified the so-called 'monkeys and gold' metaphor. 'He meant well, but the metaphor is slightly something that I think is more to get the attention of the people,' he explained. 'What he was saying is that you can actually have coal and you can utilise your coal in order to solve your problems. But Sabah opted not to exploit coal in those days, simply because we would like to keep Sabah green.' He lauded Sabah's decision to prioritise conservation over coal exploitation, noting the dividends for tourism. 'Tourism is the new gold, by the way. Tourism, over 95 per cent of all those engaged in tourism are Sabahans…It is only in the tourism industry that overwhelmingly the players…are all Sabahans. That, to me, deserved it and worth more than the gold that we opted not to exploit.' On the Ocean Thermal Energy Commission (OTEC) initiative, Masidi cautioned that results will take time. 'It will take time for it to see some form of fruition because it's a new source of energy. It's something that not many people in the world have started. So we have a long way to go. '(But) if we just fold our hands and wait for it, it won't happen. We need to start somewhere somehow,' he 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. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
24-04-2025
- Business
- Daily Express
Energy sector role critical: Chief Minister
Published on: Friday, April 25, 2025 Published on: Fri, Apr 25, 2025 By: Larry Ralon Text Size: Masidi with the organisers at the opening of SAREC 2025. Kota Kinabalu: The energy sector will continue to play a critical role in Sabah's future economic development, said Chief Minister Datuk Seri Hajiji Noor. He said the State Government had launched the Sabah Energy Roadmap and Master Plan 2040 (Sabah Energy RAMP 2040), aimed at charting the way forward and outlining key priorities for the State energy sector. 'With this in place, Sabah should be able to fully develop its green energy sector with the potential of providing up to 75 per cent of the nation's green energy supply. 'The State Government looks forward to the continued cooperation and support of all stakeholders in driving Sabah towards a greener and more sustainable future,' he said at the Sabah Renewable Energy Conference (SAREC) 2025: Corridor to Transform Vision to Reality at Shangri-La Tanjung Aru Resort, here, Thursday. His speech was read by State Finance Minister Datuk Seri Masidi Manjun. The Chief Minister said Sabah is endowed with an abundance of renewable energy sources that have the potential to offer strong prospects of contributing significantly to both the State and nation's transformation into a high value-added economy. 'The energy sector has been a critical engine of growth for Sabah's economy over the past decades, contributing significantly to the State's economy. 'It is my aspiration to see Sabah's energy sector continuing to grow whilst contributing to positive social outcomes to uplift the quality of life of the people,' he said. Hajiji said the State Government has been aggressively pushing its agenda in encouraging renewable energy and the development of clean energy by implementing programmes that would help promote economic activities and accelerate economic growth to ultimately shape and strengthen Sabah's renewable energy and green industry sector. 'The State Government will continue to develop the necessary infrastructure related to the energy sector. 'We have been steadfast in our pursuit of taking control and managing the State's energy resources to empower Sabah to develop and continuously grow the energy sector more effectively and efficiently,' he said. The Chief Minister reiterated that the State Government had identified a new economic sector – the Blue Economy that involves sustainable exploration of Sabah's incredible marine and coastal resources. He said in April last year, the Sabah State Legislative Assembly approved the new Ocean Thermal Energy Conversion (OTEC) Enactment 2024, paving the way for the development of OTEC as a new source of renewable energy and as one of the initiatives under the Blue Economy. Hajiji commended Qhazanah Sabah Berhad and the Malaysian Rating Corporation Berhad for bringing SAREC 2025 to fruition. 'The State Government is ready to collaborate with all stakeholders to unite efforts, exchange ideas and explore solutions,' he 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. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
