KUALA LUMPUR: Domestic clean energy players laud the government's decision to lift the ban on renewable energy (RE) exports as cross-border businesses will open up more opportunities in the sector.
The move announced on Tuesday will also allow local RE players to tap clean energy projects which are growing in Southeast Asia as governments and the private sector adapt to climate change.
Samaiden Group Bhd group managing director Chow Pui Hee said the decision would give a boost to businesses operating in the RE space like her company.
"Samaiden is well-positioned to take advantage of this latest decision by the government, backed by our track record as an end-to-end service provider for solar photovoltaics (PV) systems and other non-solar power plants.
"By leveraging our RE expertise, we can explore new export markets and offer comprehensive RE solutions to clients beyond Malaysia," she told the New Straits Times (NST).
Chow said domestic RE businesses would need to invest more in infrastructure in response to the demand over the foreseeable future.
"The investments in RE sources and strengthening infrastructure will also contribute to the growth of the local economy," she added.
G Capital Bhd executive director Datuk Yap Yee Ping said lifting the RE export ban was a significant milestone in Malaysia's green economy policy.
It presents many new and exciting opportunities for local businesses operating within the renewable energy sector.
"We are confident that lifting the export ban on RE will pave the way for greater collaboration, innovation, and investment in Malaysia's renewable energy sector.
"By removing barriers and opening up new markets, this decision will enable companies like ours to bring our expertise and experience to bear in supporting Malaysia's transition towards a greener, more sustainable future.
"We are proud to be a part of this exciting journey and look forward to making a positive difference through our commitment to renewable energy," Yap told the NST.
He said as a company at the forefront of developing solar power and hydropower solutions, G Capital looked forward to the potential cross-border RE export.
He added that the move would also expand the company's reach and drive innovation progress towards a cleaner, more sustainable future.
Economy Minister Rafizi Ramli on Tuesday said the decision to lift the ban on cross-border RE exports would benefit companies in the RE business.
He said the decision was jointly made with the Natural Resources, Environment and Climate Change Ministry to improve the country's policy on the green economy.
The ban on the export of renewable energy was implemented in October 2021 under the Datuk Seri Ismail Sabri Yaakob-led administration.
Progressture Solar Sdn Bhd chief operating officer Ng Yew Weng said to ensure proper execution of cross-border energy export, a clear regulatory framework with well-defined regulations and policies needed to be established to govern it.
This is in addition to ensuring proper grid integration, monitoring, reporting, and compliance with the export of energy.
"The concern of previously banning the RE export back in 2021 was due to the regard that it would hinder Malaysia from fulfilling its own carbon reduction target.
"Nevertheless, this is proven untrue given that Malaysia has an untapped RE potential cutting across solar, bioenergy, and hydropower, totalling up to 275 GW.
In fact, with solar accounting for more than 96 per cent of that potential, this untapped RE potential can power up more than eight times the size of Malaysia," he told the NST.
Solarvest Holdings Bhd executive director and group chief executive officer Davis Chong Chun Shiong believes that lifting the RE export ban will enable the company to leverage its regional expertise and capabilities and expand its international customer base.
"This could lead to more business opportunities and partnerships with international players in the renewable energy market," he said.
Chong said to fully realise the RE market's potential, Malaysia must increase its investments in renewable power capacity, infrastructure, and energy efficiency to cater for the increase in renewables capacity.
MIDF Research, in a note, said in the long run, the new policy on RE trade aimed to position Malaysia at the centre of the regional electricity trade, riding on the Asean grid interconnection initiative.
The firm said the move aimed to capitalise on the ample RE resource in the country and its strategic geographical location at the centre of the region.
To give perspective on Malaysia's RE potential, the 18GW of RE capacity required to achieve the country's mid-term target of 40 per cent RE capacity mix by 2035 accounts for just 6.2 per cent of the total 289GW RE resource identified in the country.
"We believe YTL Power International Bhd and, indirectly, YTL Corporation, stand to benefit in the immediate term given its advantage in having existing power generation and power retail operations in Singapore.
"We also believe Tenaga Nasional Bhd (TNB) stands to benefit from wheeling charges given its monopoly of the nationaltransmission grid.
"We also believe TNB will benefit from higher capex into grid infrastructure to accommodate the envisioned regional RE trade, which will be positive for its regulated earnings.
"Having said that, we believe the potential increased demand for RE exports will drive more requirements for RE capacity and do not rule out other existing RE owners and developers, such as Ranhill Utilities Bhd, Jentayu Sustainables Bhd and Cypark Resources Bhd, to tap into this potential," MIDF Research said.
The firm noted that engineering, procurement, construction and commissioning players such as Solarvest and Samaiden were also obvious potential beneficiaries.