Sarawak Onwards RE boost

Energy remains forward for

committed economy
Chief Minister Datuk
Group CEO Datu Sharbini Patinggi Abang Zohari KeTSA Minister Dato’ Dr
Suhaili says company Openg says Sarawak’s Shamsul Anuar Nasarah
will continue to build on green hydrogen push says Malaysia will strive to
sustainability, hydropower attracting investors attract more investment
and regional ambitions. from Europe and the US. for clean energy
p14-15 p04-05 transformation. p18

Months of january-february, 2021

vol: 1 issue 4 | rm8.00 | PP19622/09/2020 (0352210)

NEM3.0:
Jury is still out
The 300MW allocation for the commercial and
industrial sector under the Nett Energy Metering 3.0
(NEM3.0) programme will reduce distribution to
only 60 per cent. p10-12
 @green | January-February, 2021

02 contents

Editorial Department
Johnson Fernandez
Managing Editor
johnson@revonmedia.com
Charles Raj
Smart Partnership: Editorial Consultant

TheTeam charles@revonmedia.com
Camilia Rezali
Writer
camilia@revonmedia.com
Kay Mathy Khirtini K. Kumaran
Publisher Writer
kaymathy@revonmedia.com khirtini@revonmedia.com.
Law Beng Chee a.azam
CEO/Editor-in-chief Creative Director
bclaw@revonmedia.com a.azam@revonmedia.com

p04-05

p04-05 p16
Onwards forward Save Money, Save Energy,
Sarawak’s green hydrogen push attracting investors from
Europe and the US Save the Environment
KeTSA seeks to encourage, nurture, and advocate energy-
p06 efficiency and the savings that come from it, especially for
domestic users
Creating a Blue Ocean
Taiwanese e-bikes impact with strong industry chain
p17
p08-09 Mid-term action plan
A mid-term review of the National Energy Efficiency Action
Opportunity for innovations Plan is being done to further improve energy-efficiency
It’s a driving force in Malaysia’s solar PV agenda in the country

p10-12
COVER STORY
p06 p18
The Good, the Bad RE boost for economy
KeTSA Minister Shamsul says Malaysia will strive to attract
and the Necessary more investment for clean energy transformation
Well-designed policy framework can ensure the long-term
sustainability of the solar PV industry
p20
p14-15 Is winning an auction
Remaining committed a good thing?
Sarawak Energy will continue to build on sustainability, Auctions are preferred tool to award renewable energy projects
hydropower and regional ambitions p15 around the world
January-February, 2021 | @green

contents 03

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@green Says… leadership. If Malaysia, as one of the wealthiest

countries in Southeast Asia, does not show leader-
ship with real climate change commitments and

Where’s
action, it gives poorer countries a free pass of doing
p25-27 nothing.
There are plenty of low-hanging fruits within the
Don’t even think about it field of energy efficiency that remain un-plucked.
Kedah REE mining venture raises

the walk
This would be an excellent place to start for Malay-
environmental and health concerns
sia - also economically, as the investment return for
energy efficiency is attractive.
p28 Consider these:

in the talk?
• Malaysia still has fossil fuel energy subsidies,
Save our elephants especially for natural gas/electricity production.
Rampant illegal logging giving rise to According to the IMF 2013 data, the Malaysian
human-beast conflicts fossil fuel subsidies, including externalities
(mostly health impacts on the Malaysian popu-
p29 lation from air pollution) amounts to RM88
billion/year. In other words, fossil fuels costs
Menraq to the fore

M
Orang Asli forest patrol makes giant alaysia is presumably one of the wealthiest
leaps in saving Malayan Tiger nations in Southeast Asia and was supposed to
have been a developed nation by 2020.
p30 But Malaysia is on course to double its
absolute CO2 emissions from 2005 to 2030.
Making Malaysian (Interestingly, the official goal is formulated as a 45
agriculture truly per cent reduction in greenhouse gas emission (GHG)
intensity).
sustainable But Malaysia already belongs to the top 13 per cent
Agriculture needs to be made highest greenhouse gas emitters per capita (2012) when
more appealing including the emissions from land-use change and forestry.
This brings the GHG emission of Malaysia up to 14.8
tonnes CO2e per capita, which is only slightly lower than
the United States’ emission (18.6 tonnes CO2e per capita).
This is the comparison with some other countries in
Southeast Asia:
• Indonesia: 8.0 tonnes CO2e per capita
• Thailand: 5.6 tonnes CO2e per capita
• Vietnam: 2.8 tonnes CO2e per capita
With climate change identified as an existential threat to
humanity, Malaysia needs to buck up and show regional
are artificially low, which skews the playing
field, making it harder for environment-friendly
solutions to be competitive. 
• Malaysia does not have any carbon tax or plans,
if memory serves right, to implement carbon
taxation. This means that it is free to pollute
the atmosphere with greenhouse gasses even
though climate change by the UN has been
identified as an existential threat to humanity.
• The 2019 paper “A Proposal for Carbon Price-
and-Rebate (CPR) in Malaysia” by Darshan Joshi
from the Penang Institute, proposes a gradual
carbon tax to be implemented in Malaysia.
Studies show the carbon tax in Malaysia should
be RM120 per tonne CO2 equivalents (tCO2e) to
compensate for society’s costs.
Darshan also argues that taxation should be
made such that the B40 families gain financially
from the implementation of carbon taxation. The
Malaysian government can earn about RM5 billion
per year, which can fully cover Malaysia’s climate
funding.

p21
Building blocks for Malaysia 5.0
Humans must be trained to excel at something which will remain
out of AI reach for at least some time to come
p20
p22
House on fire
We are not doing any favour by giving significant
subsidies to fossil fuels

p23
Environment-friendly mobility
Use of fossil fuel for electric power generation and
transport are the ‘worst offenders’ for carbon emissions

p24
Hype v Substance
p21 Sustainability: an early career working definition p24

04 FOCUS
Sarawak Bakun Dam.
Onwards forward
Sarawak’s green hydrogen push attracting investors from
Europe and the US
S
BY KHIRTINI K KUMARAN
arawak’s push for green hydrogen is
paying off with many potential foreign inves-
tors keen to participate in the sector.
The interest pouring includes those from
Europe and the US. Many of them have
been scouting for areas to either source for
green hydrogen or to set up regional hubs
for hydrogen-related businesses.
Sarawak Chief Minister Datuk Patinggi
Abang Zohari Openg said these potential investors saw the
State was already ahead in commitment to clean hydrogen
development.
“Many countries would like to tap onto the green
hydrogen economy. But due to inaccessibility to renew-
Sarawak’s sixth Chief Minister,
Protecting the Datuk Patinggi Abang Zohari Openg is
committed to embracing sustainable
environment Renewable Energy (RE) and protecting
the environment.
Abang Zohari’s vision was to
establish an emission-free public
transportation system, the State
government began exploring
alternatives such as hybrid, fully-
electric and hydrogen-powered buses.
Considered to be a genuinely zero-
emission alternative, the Sarawak
government opted and successfully
established hydrogen fuel cell buses. Subsequently, the State
began to venture into the green hydrogen economy.
Abang Zohari, who was appointed Chief Minister on Jan
13, 2017, is passionate in Sarawak’s pursuit of reducing
dependence on fossil fuels and non-renewable resources. The
State is gradually embracing green energy with RE resources,
and he believes that it will drive the economy forward.
Abang Zohari elaborates to @green on Sarawak’s
commitment and participation in RE development, including the
Economic Strategy Plan 2030.
@green | January-February, 2021
able power sources like our hydropower dams, the cost
for them to embark on this will be even more expensive.
They will have to build the infrastructure for renew-
able energy sources before they can even build a green
hydrogen plant,” he told @green.
“We are confident that with our proactive effort in
developing the hydrogen economy, by the time the global
hydrogen economy has reached mass adoption, Sarawak
will be among the leaders in the industry and technology.
“This will, in turn, contribute to our GDP, provide
stable and high-income employment, and create eco-
nomic prosperity.”
Abang Zohari said the zero-carbon hydrogen economy
to be developed in Sarawak would play an essential
role in the supply and use of an environment-friendly,
sustainable source of energy, which at the same time
contribute to economic prosperity through the global
export market.
“Around the globe, hydrogen is enjoying unprecedented
momentum, with the number of policies and projects
around the world expanding rapidly.
“Sarawak aspires to participate actively in this new
frontier and use this opportunity to scale up technologies
and bring down costs to allow hydrogen to become widely
used, through collaborations and partnerships with global
technology partners.”
On Oct 13, 2020, Sarawak announced the Sarawak
Could you provide some insights into the new
initiatives the State will introduce to allow private RE
investment participation?
The Sarawak Economic Action Council (SEAC) was
established early this year to formulate the Sarawak
Government’s Post-Covid-19 Exit Economic Strategy up
to 2030. Under SEAC, the RE sector’s aspiration is to
achieve sustainable growth and prosperity for Sarawak
by 2030 as South East Asia’s powerhouse through
affordable, reliable and renewable energy.
On top of reaffirming large hydro as a primary RE source,
Sarawak will promote private sector participation in RE
investment through three RE resources: solar, mini-hydro
and oil palm biomass renewable energy. Next year, the
State will open up competitive bidding for Sarawak’s first large
scale solar project, which is 50MW floating solar located at
Batang Ai Hydro reservoir. This will give opportunities to private
players to participate in the bidding process.
Under the 12th Malaysia Plan (2021-2025), Sarawak plans
to incentivise home solar rooftop installations, which will benefit
households from reduced electricity cost under the Net Energy
Metering (NEM) scheme. This solar rooftop project will further
support the deployment of solar PV through private investment.
The State also aspires to achieve more than 15 per cent RE
January-February, 2021 | @green

FOCUS 05

Hydrogen Refuelling Station.

Many countries would like to tap onto the green hydrogen

economy. But due to inaccessibility to renewable power
sources like our hydropower dams, the cost for them to
embark on this will be even more expensive.”
– Datuk Patinggi Abang Zohari Openg
Hydrogen Association, the first of its kind in Malaysia and Sarawak Energy Berhad and Petronas on Nov 10, 2020 to
possibly in the region. The association comprises mem- explore Green Hydrogen Commercial Exploration.
bers from the industry such as Sarawak Energy Berhad, With Sarawak’s abundant indigenous natural
Petroliam Nasional Berhad (Petronas) and Shell. Also, resources, with hydropower being the powerhouse, which
it includes higher learning institutes such as Universiti can be harnessed to produce renewable energy, the State
Malaysia Sarawak (UNIMAS) and Swinburne University embarked into sustainable energy development in the
of Technology Sarawak. 1960s.
This association’s main objective is to drive the Sar- The Sarawak Corridor of Renewable Energy was cre-
awak Hydrogen Agenda with collaborative effort between ated following Sarawak’s successful establishment of its
the government, private and academic sectors. hydropower plants in Batang Ai, Murum and Bakun.
“Just one day after we set up our hydrogen association, To develop the State’s green energy agenda, Sarawak
Japan had also announced ita Japan Hydrogen Associa- continued to explore and conducted research on potential
tion (JH2A) to drive the development of a hydrogen society alternative renewables.
in Japan by promoting public and private alliances and Following that, the State began venturing into the green
regulatory frameworks,” he said. hydrogen economy. Through SEDC Energy Sdn Bhd,
The Chief Minister subsequently said a Memoran- Sarawak started investing in pilot projects of hydrogen
dum of Understanding (MOU) between SEDC Energy, such as fuel cell buses and cars and refuelling station in
Sumitomo Corporation, and ENEOS Corporation was 2019.
signed to carry out a techno-commercial study to develop And in 2020, Sarawak launched the first hydrogen fuel
a hydrogen plant the Petrochemical Park in Bintulu on cell buses, vehicles, and integrated hydrogen production,
Oct 23, 2020. storage, and refuelling station in Southeast Asia.
“We are excited to embark on this journey towards SEDC Energy also began studying the feasibility of
developing a hydrogen plant to export zero-carbon or large-scale hydrogen production to meet domestic and
green hydrogen to Japan and other countries. export markets.
“I am also proud that ENEOS Corporation, one of our With prospective partner and investor, they plan a 1,000
partners in the development of hydrogen in Sarawak, is a tonnes per year facility in Bintulu which would be ready
member of the JH2A. Another MOU was signed between in 2023 to meet potential buyers’ needs. — @green

income from foreign markets outside Sarawak by
2030 through power export, which can further expand
our energy market and strengthen the power system
through interconnection with neighbouring countries
and State. The power export market will allow the
State to further develop our untapped RE resources,
boost the economic growth and create more job
opportunities.
For the RE sector’s hydrogen agenda, the initiative
undertaken is to stimulate the Sarawak Hydrogen
Economic by attracting investments for large scale
hydrogen production in Sarawak to meet regional green
hydrogen demand through export and encourage
private sector participation in hydrogen value chain
development locally in Sarawak.
What are the RE targets by 2030 for each of
the resources, and how will these targets be
operationalised?
The three renewable energy sources targets set by
2030 consist of solar (300MW), Biomass Waste to
energy (150MW), and Mini hydro (25MW). The State
will have comprehensive public policy support to
ensure the support of these project development, and
public awareness of RE merits, increasing RE energy
sources’ uptake.
Visibility in RE planning is crucial to help spawn
a growing RE industry. How does Sarawak
intend to provide fair business opportunities for
the industry?
The RE targets set for 2030 will be achieved through
a competitive open tender bidding process. This will
promote renewable energy investment for the RE
industry and is a quick way to boost the Sarawak
economy, increasing job opportunities.
As a result of the Economic Strategy Plan 2030,
what are the estimated socio-economic benefits
that this plan will bring to the State?
By 2030, Sarawak will be a thriving society driven by
data and innovation where everyone enjoys economic
prosperity, social inclusivity and a sustainable
environment. The post-Covid-19 Exit Economic
Strategy Plan will reflect and improve on existing
policies and strategies. Through the implementation,
Sarawak’s economic growth will be equitably and
sustainably cascaded into wealth and prosperity to
all Sarawakians as the State moves to achieve a high
income and developed State status by 2030.
To achieve a high income and developed State
status by 2030, the Sarawak economy is targeted
to grow at an average of eight per cent per annum.
However, the focus is on growing our economy
and ensuring the growth is translated into every
Sarawakian.
With an improvement in physical and digital
infrastructure, Sarawak’s connectivity will benefit the
locals and enable our local businesses to connect to
the world. More business opportunities and jobs will be
created.
The average household income is also anticipated
to increase by 2.7 times, and I believe the income
gap will also be reduced. Investment in technology
and innovation will also help ensure all our economic
activities are sustainable and continue to be enjoyed by
our future generations.
Specifically, the RE sector including the hydrogen
economy is poised to create 10,000 new jobs, have a
RM5.5 billion GDP impact and the potential for 12.53
million tonnes of carbon dioxide avoidance per annum
by the year 2030.

06 foreign news
TRANSPORTATION
Creating a Blue Ocean
Taiwanese e-bikes impact with strong industry chain
With the rising awareness of
environmental protection and
the popularisation of leisure
and fitness concepts, e-bikes
have become a new model of
“green transportation” due to
their various advantages, such as
power-saving and zero pollution.
Thanks to gradually maturing
technology and decreasing unit
prices.
Europe has become one of
the significant e-bike markets
globally as it leads the world in
environmental awareness.
With the international e-bike
market being driven by Europe, as
demand for e-bikes among seniors
in the EU market increases, the
average unit price of e-bikes
exported to the EU from Taiwan
has also risen significantly 36.7
per cent. That created a rise in the
overall export value of e-bikes.
Apart from Europe, Taiwan’s
export structure is led by exports
of e-bikes to North America and
in 2019 reached 144,000 units in
volume, ranking first in terms of
growth of export value among all
regions.
Since the rise of the sharing
economy, the Taiwanese bicycle
industry was hit hard as the
overall export value of Taiwanese
bicycles slid downward. However,
e-bikes have experienced “a
rise in both volume and price”
recently.
According to data published
by the Customs Administration,
Ministry of Finance, Europe and
North America accounted for over
90 per cent of Taiwanese e-bikes
exports. Simultaneously, the top
GREEN FINANCE
Funds to benefit
from green revolution
There are many more sustainable
or ethical funds to choose from
than those engaged directly in the
‘greening’ economy.
With the help of investment platform
AJ Bell, the top-performing open-ended
investment companies (OEICs) of the
last three years are sorted through-
reasoning that in a rapidly developing
field, recent performance should be
given more weight than in most sectors
- to pick out eight funds.
Benchmarking in this area is
haphazard, however, which makes
comparing performance tricky.
According to Laith Khalaf, a financial
analyst at AJ Bell, the two consistently
stand-out performers are Blackrock
Sustainable Energy and Pictet Global
Environmental Opportunities. Pictet
GEO holds companies focusing
on energy efficiency and invests
in companies tackling other vital
Merida’s e-bikes have received the Taiwan Excellence Silver
Quality Award in consecutive years.
three importing countries were
the Netherlands, the US, and
Germany.
However, the Taiwanese bicy-
cle industry stresses quality over
quantity and pursuing high-tech
and high-value-added products.
It has also greatly affected the
development of the global bicycle
technology.
In recent years, Taiwan’s two
major bicycle brands - Giant and
Merida - have actively developed
e-bike products, to satisfy the
global demand. For example,
Giant Group invested EUR15
million to set up a new plant in
Hungary to get closer to the rapid
rising e-bike market in Europe by
shortening the supply chain.
Giant bicycles are sold in over
50 countries with over 10,000
distributors and have been devel-
oping power-assisted bicycles
since 1999. And was also the first
brand to bring power-assisted
environmental issues such as waste
management and pollution control.
“It is the only fund in our table that
has beaten the world index and the
global funds sector over 10 years.”
A quick look at a list of 1,642 widely
available OEICs shows the Pictet GEO
fund sneaks into the top 100 performers
over the last three years with its total
return of nearly 50 per cent.  efficiency, water management,
Khalaf added: “Guinness has an
absolutely awful period of performance
bikes into the European market.
Founded in 1972, Merida
Industry Co., Ltd. has also been
targeting the trend of e-bikes. The
launch of the e160, an electric
mountain bicycle produced by
Merida, caused a stir in the global
market three years ago.
The “e160 900E Electric
Full-Suspension Cross-Country
Mountain Bicycle,” which
flaunted that climbing uphill
would no longer be a burden, has
become a classic representation of
sports and leisure e-bikes and has
won the Taiwan Excellence Silver
Quality Award 2017.
In 2020, Merida launched the
eONE-SIXTY. It won the Taiwan
Excellence Silver Quality Award,
thanks to its variety of unique
designs. The designs included a
new carbon fibre frame that is
lighter and more rigid and a heat-
conducting device to prevent the
battery overheating.
shortly after it launched, losing around 80
per cent of its value between 2008 and
2012. Not many funds make it back from
that kind of sustained poor performance,
but Guinness Sustainable Energy has
shown some bouncebackability, and
recent performance has seen a marked
improvement.”   Nordea, has a strategy devoted to resource
The Impax fund is something of
an anomaly as it invests exclusively in
Asia - although, given the region’s rapid
recovery from the Covid crisis and the
China emissions pledge, this might be no
bad thing.
WHEB Sustainability is the closest
thing to a general ESG fund, but an
examination of its holdings show a
focus on specifically green sectors. The
fund invests globally across themes
like environmental services, resource
sustainable transport and cleaner
energy.  funds than the last 10 years.”
@green | January-February, 2021
ENERGY
World’s largest
standalone
solar and energy
storage project
Terra-Gen, a leading renewable energy
developer and operator, announced an
agreement with Mortenson to proceed on
the Edwards & Sanborn solar and energy
storage project in Kern County, California.
The project consists of 1,118 megawatts of
solar and 2,165 megawatt-hours of energy
storage. It is currently the largest single solar
and battery energy storage project to reach
this milestone.
“Selecting the right partner to execute
a project of this scale coupled with cutting
edge battery experience was paramount for
Terra-Gen, and Mortenson was a natural fit,”
said Brian Gorda, Terra-Gen’s vice president of
Engineering.
“Terra-Gen is excited to push the industry
to new heights and build a plant that provides
energy for all hours of demand.”
The Edwards & Sanborn project is located
near several operating winds and solar projects
in Kern County, California. Mortenson is the full
Engineering, Procurement, and Construction
(EPC) contractor on solar and energy storage
scopes. Site construction will commence in Q1
2021 with expected completion in Q4 2022.
Solar production on the site will utilise more
than 2.5 million modules to produce enough
energy to power 260,000 homes in California.
Energy storage will use more than 110,000
lithium-ion battery modules.
Mortenson is one of the top contractors
in power with industry-leading experience in
the wind, solar, transmission and distribution,
repowering and battery energy storage. The
project is Mortenson’s 78th solar project and
11th energy storage project.
“The Edwards & Sanborn solar and energy
storage project is industry-changing and during
this challenging 2020 will redefine the impact
these systems will have on our clean energy
future,” said Trent Mostaert, Mortenson’s vice
president and general manager of Solar. “We
are proud to combine our solar and energy
storage design and construction expertise with
Terra-Gen’s development capabilities to deliver
a world-class energy facility.”
Jupiter Ecology is an old-timer for this sector,
managed by Charlie Thomas since 2003. It
makes long-term investments in companies
which are involved in recycling, energy-saving
and water treatment.
The youngest fund on the list meanwhile,
efficiency and companies improving efficiency
with their products and services. One holding is
HexCel Corp, the leading carbon fibre producer
in the world.
Khalaf noted the specialist nature of these
funds meant they weren’t the cheapest. “A
typical active fund costs around 0.75 per cent
and several of these funds charge considerably
more than that.”
Looking forward, he concluded: “With the
race for clean energy really taking off in recent
years as fears over climate change have
heightened, it’s a good bet that conditions in the
next 10 years will look more favourable for these
January-February, 2021 | @green 07

08 SOLAR ENERGY
ASEAN CLEAN ENERGY WEEK 2020
Opportunity
for innovations
It’s a driving force in Malaysia’s solar PV agenda
O
By A SPECIAL CORRESPONDENT
n Nov 24-27, the Leader Associates hosted
the virtual Asean Clean Energy Week
(ACEW) 2020. Dr Wei-nee Chen, Vice
President of New Energy Ventures, Hibiscus
Petroleum Bhd gave the keynote address
on Current and Future Outlook of Solar PV
Opportunities in Malaysia.
Chen was previously the Chief Strategic
Officer of the Sustainable Energy Develop-
ment Authority (SEDA) of Malaysia before she joined
Hibiscus a few months ago.
In 2019, SEDA began developing the Renewable Energy
Transition Roadmap (RETR) 2035. Part of the study
included the assessment of renewable energy available
in the country.
The study showed Malaysia had a total of 269 GW of
solar PV availability of which ground-mounted took the
lion share of 210 GW, the rooftop of 42.2 GW, and floating
PV of 16.8 GW.
Solar energy represented nearly 93 per cent of the total
renewable source available in the country, and the total is
inclusive of large and small hydropower, bioenergy, and
geothermal.
In Malaysia, the primary drivers of the solar PV market
were the Feed-in Tariff (FiT) scheme implemented by
SEDA on Dec 1, 2011.
Over the past 15 years, Malaysia has witnessed a drop
of nearly 90 per cent of the cost of the system of solar PV.
To this effect, solar PV graduated from the FiT scheme to
other schemes such as the Large Scale Solar (LSS), Net
Energy Metering (NEM) and Self-Consumption (SELCO).
The LSS and NEM were instrumental to further drive
down cost competition, thanks in part to the green invest-
ment tax incentives provided by the government for
Of the renewable qualifying companies under the Income Tax Act 1967 and
energy resources in the Green Technology Financing Scheme (GTFS).
our country, solar NEDA, a new kid on the block
photovoltaic (PV) Perhaps not known to many is that there is another avenue
for developers to expand their portfolio of solar PV assets.
has the highest The NEDA, which stands for “New Enhanced Despatch
availability. This is Arrangement”, is a pre-cursor to a merchant electricity
market whereby participants of the NEDA can sell their
not a surprise given electricity to.
that Malaysia is It was introduced in June 2017 and operated by the
Single Buyer. The key objectives:
located along the Sun • bring down the cost of electricity supply through healthy
Belt.” competition,
• allow energy-efficient technologies such as Cogenera-
– Dr Wei-nee Chen tion Plant to participate in the electricity market,
• let non-PPA (power purchase agreement) generators,
including renewable energy, to take part in the electric-
ity market.
@green | January-February, 2021
(source: singlebuyer.com.my)
Objectives of NEDA
As of today, there are only three participants in the NEDA,
although there is growing anticipation that the solar PV
developers may consider participating in the NEDA.
However, the biggest challenge is the bankability of the
PV system under the NEDA framework.
It has taken years for the local financial institutions to
gain confidence in the PPA for solar PV. Under the NEDA,
as in any merchant electricity market, there is no PPA.
In that regard, bankability of solar PV projects under the
NEDA relies on companies having a strong and robust
balance sheet.
Innovative financing
for merchant participants
In other advanced merchant electricity markets, e.g. in the
US and Australia, solar PV has secured bankability through
innovative financing solutions such as the proxy revenue
swap (PRS) and synthetic PPA.
Both these solutions are premised on the concept of
contract-for-difference (CfD) whereby the differences
in wholesale electricity price and the agreed strike price
will be settled between the hedge provider or corporate
off-taker, and the solar PV project developer.
The differences may not just be managing the price
risk but can also be extended to include volume risk
of the solar PV generation under some threats such as
curtailment. In essence, the solar PV developers secured
a steady stream of income from the hedge provider (as in
PRS) or corporate off-taker (as in synthetic PPA), and this
will help in improving the bankability of their projects.
While there is no energy exchange between the solar
PV developers and the hedge-provider (PRS) and cor-
porate off-taker (synthetic PPA), under both concepts,
the counterparty can opt to purchase the associated
environmental attributes.
This is especially true for synthetic (or virtual) PPA in
which renewable energy certificates (RECs) are traded
between the solar PV developers and the corporate
off-takers.
What are RECs?
Renewable energy has two attributes that can be mone-
tised: electricity and environmental quality. In this regard,
a REC is an instrument where it tracks all ecological
features of 1MWh of renewable generated power.
REC is a prevalent instrument among RE100 com-
panies to reach their goal, it allows residual electricity
consumption to come from the purchase of unbundled
RECs.
Race to nett-zero
The world is undergoing a race to Nett Zero, and
corporates will be required to demonstrate their ESG
commitment. Deploying solar PV will be one of the visual
and impactful ways for corporates to demonstrate envi-
ronmental sustainability.
While Malaysia provides an exciting future for solar PV
opportunities, the role of government in giving enablers is
very crucial to sustain the local PV market development.
Efforts, such as opening the grid for third party access
(TPA), can further facilitate front-of-meter (FTM) cor-
porate PPAs for direct procurement of solar electricity.
It will also enable other innovations such as the virtual
nett energy metering (VNEM) and P2P energy trading.
— @green
January-February, 2021 | @green
Managing emissions
Committed to reducing 45 per cent carbon emissions by 2030
A
By Khirtini K Kumaran
ccording to the United Nations Develop-
ment Programme (UNDP), cities account
for 60 to 80 per cent of energy consumption
and at least 70 per cent of the global carbon
emission.
Carbon emissions in Malaysia are
mainly related to urban settings. Malaysia’s
response towards mitigating the issue is
through low carbon cities (LCC), which
provides an opportunity to reduce carbon emission with
its sustainable urbanisation approach.
Malaysian Green Technology and Climate Change
Centre (MGTC) organised a webinar on Dec 23, 2020, to
highlight the various aspects of LCC in Malaysia.
The ‘New Normal Webinar of Low Carbon City: Make it a
Reality!’ webinar included presentations from low-carbon
experts from various government agencies, professional
bodies and local companies.
The speakers at the webinar were Datin TPr Mazrina
Abdul Khalid (Malaysian Institute of Planners), Ar Mus-
tapha Kamal Zulkarnain (Pertubuhan Arkitek Malaysia),
Ir Santha Kumaran Erusan (Institute of Engineers Malay-
sia), Ar Serina Hijjas (Malaysia Green Building Council),
Juanita Lourdes (Green Real Estate), Ir Phang Chen Faut
(Malaysian Energy Services Companies Association), Nur
Sabreena (Advanrail Sdn Bhd), Faizal Akmal (Rivil Sdn
Bhd) and Pang Swee Lei (Pamarai Sdn Bhd).
Malaysia’s commitment
to carbon emission reduction
Presenting on ‘Introduction to LCC Planning’, Mazrina
shared on Malaysia’s journey towards reducing carbon
emission, which began when it announced its commit-
ment to reduce 40 per cent carbon emission by 2020, at
the United Nations Climate Change Conference 2009 (COP
15) in Copenhagen.
In 2015, at COP 21 in Paris, Malaysia further expressed
its commitment to reduce 45 per cent carbon reduction
by 2030. Malaysia then reported at COP 23 in 2017 that its
carbon reduction is on track to achieve its target.
Malaysia has developed the Low Carbon City Frame-
work (LCCF) to guide cities in managing carbon reduction.
She further explained that by implementing LCCF, Malay-
sia will deliver 10 out of the 17 Sustainable Development
Goals (SDGs).
The building sector is responsible for about 40 per cent
of energy-related global carbon emissions. In Malaysia, the
residential and non-residential sector is projected to grow
in the next decade.
“However, less than one per cent of Malaysia’s building
Petronas to deploy Low Carbon Solutions in line with
its Nett-Zero Carbon Emissions 2050 aspiration
Riding on the momentum of its Nett-Zero Carbon
Emissions 2050 declaration in October, PETRONAS
has joined forces with the United Nations Global
Compact Network Malaysia & Brunei (UNGCMY&B) at
the recent GO ESG ASEAN Corporate Sustainability
Virtual Summit 2020 to position sustainability at the
core of business recovery efforts in ASEAN.
Aptly themed “The Business of Recovering Better – A
Resilient & Sustainable ASEAN by Design”, the Summit,
which was held on Nov 2-30, 2020 drew both local and
regional online participants.
Speaking at the event, Petronas Vice President of
Group Health, Safety, Security and Environment (HSSE)
Dzafri Sham Ahmad said the summit was an opportune
occasion to support Petronas’ aspiration of achieving
nett-zero carbon emissions by 2050.
He said: “Petronas’ strategy is to continue minimising
the impact of our carbon footprint in existing and future
operations and deploy more low carbon solutions
technologies. We need to have a full understanding of
LOW CARBON CITIES 09
Carbon emissions in Malaysia are
mainly related to urban settings.
Malaysia’s response towards
mitigating the issue is through low
carbon cities (LCC), which provides
an opportunity to reduce carbon
emission with its sustainable
urbanisation approach.”
stock is green certified,” Juanita shared.
Mazrina Considering the projected urbanisation, cities tend to
face environmental issues such as Urban Heat Island (UHI)
effect, loss of biodiversity, etc. She stressed that added
greenery will be able to solve the ecological problems.
According to Serina, a green township’s development
considers a more holistic planning approach; creating
better linkages between communities, environment, and
buildings.
And when it comes to greening a township, there are six
core criteria, which are:
• climate, energy and water,
• ecology and environment,
• community planning and design,
• transportation and connectivity,
• building and resources, and
Mustapha Kamal • business and innovation.
In Malaysia, the energy sector, which includes electric-
ity and transportation, makes up 80 per cent of the total
emissions.
Santha, presenting ‘Renewable Energy for Sustainable
LCC’, stated that renewable energy was the main drive for
low carbon. While Malaysia had started renewable energy
initiatives, it was still in the early stages.
Mustapha, who presented ‘How are cities to cope after
Covid-19 – The good news and the future’, said that apart
from climate change and disaster risk management, urban
design protocol now needed to consider handling control
Covid-19 or other potentially infectious diseases.
He believed the green and smart buildings designs
would be the secret weapon to combat infectious diseases
in the future.
Serina Hijjas “Buildings will be the filter between us and the pan-
demic,” he said.
The webinar also further featured presentations from
the remaining speakers, each sharing their green-certified
services and innovations, contributing to LCC goals. — @
green
grow our businesses
and support a green and
clean agenda together
with our partners.”
Executive Director
market readiness and changes in consumer behaviour in of UNGCY&B Faroze
order to determine the required capital investments. Nadar said: “The shift
“We believe there are opportunities in growing our in focus from restarting
low-carbon portfolio and increasing circularity in our to reimagining business
resource consumption to optimise costs. We are already is an opportunity to
seeing positive results through efforts that we have put make way for a new,
in two decades ago to reduce emissions. Over the same environmentally friendly
period, our technology strategy also delivered improved economy in the creation
efficiencies.” Dzafri of the world we want –
Dzafri added Petronas was looking into the possibility not to recover to the old
of deploying more low carbon solutions in the long term, normal but resetting for a sustainable and integrated
with a project on carbon capture & storage (CCS) on global system in the post-pandemic era. The summit
the horizon. Other types of low carbon solutions include is indeed timely as it presents a platform for SMEs
carbon utilisation technologies, bio-based products, and and Corporates within ASEAN to come together and
hydrogen amongst others. demonstrate climate leadership.”
In order to achieve the 2050 aspiration, Dzafri pointed The Summit featured high-level global and regional
out that a concerted effort and collaboration between speakers, including a pool of heads of governments,
policy makers, industries, consumers and other key with topics curated around global sustainability
stakeholders is required. megatrends, the UNGC 10 Principles and ASEAN
“Collaborations will be the key driver for Petronas to priority areas.
 @green | January-February, 2021

10 cover story

The Good,
NETT ENERGY METERING 3.0 changed surplus solar electricity’s compensation rate
from displaced cost to a 1-on-1 offset.
This change, coupled with the existing government
incentives such as the Green Investment Tax Allowances
(GITA) and the Green Technology Financing Scheme
(GTFS), helped improve the returns for companies that

the Bad and

invested in solar photovoltaic (PV) for a rooftop.
Last year turned out to be a year of surprises because,
despite the Covid-19 pandemic struggle, the solar PV
industry grew spectacularly. Suffice to say that Malaysia
is one of the countries within this region with solar PV
policies that helped to spawn a green economic recovery.

the Necessary
Business owners post the MCO partial lockdown from
March to May realised their solar investment under the
NEM was making financial sense as any excess solar
electricity was allowed to roll over for 24 months under
a 1-on-1 basis.
The excitement for LSS@MEnTARI did not hamper the
A well-designed policy framework can ensure the take up for NEM2.0 either. As can be seen from the chart
from SEDA, the take-up rate in 2020 was overwhelming.
long-term sustainability of the solar PV industry and in turn, The quota for NEM2.0 was finished a month before
the year-end deadline. This created a new demand. On
spawn a green economy which by now is necessary as Dec 29, 2020, the Ministry of Energy & Natural Resources
nations heal from a year-long coronavirus pandemic (KeTSA) announced the much-anticipated NEM3.0. The
table below shows the salient features of NEM3.0.
Conclusion
The government should be lauded for rapid response in
formulating NEM 3.0 within a month after the 500MW

O
By @green team quota for NEM2.0 was finished.
The solar industry for this Covid-19 period has helped
n Nov 27, 2020, the 500MW of NEM quota, to boost green economic growth and employment. In
initially announced in Budget 2017 on Oct November 2020, the International Energy Agency (IEA)
5, 2016, was finally fully subscribed. declared that solar energy is the cheapest form of energy.
The original nett energy metering In Malaysia, we do have abundant solar technical
(NEM) scheme began on Nov 1, 2016, and potential. Despite this low cost of solar energy, Dr Fatih
the quota was intended to last until the Birol, Executive Director of the IEA, emphasised the roles
end of 2020. Although from 2017-2018, the of policies that will continue to remain critical in driving
growth of NEM was low, a policy change a vibrant and robust solar PV market.
which took effect on Jan 1, 2019, helped The NEM3.0 has demonstrated innovation, but further
the uptake of the NEM. restrictions imposed in the spirit of spreading the pie
The policy change, dubbed N EM2.0, essentially over a bigger pool of recipients. Moving forward, perhaps
there may not be
a need for a quota
system anymore,
thereby not cre-
ating the concern
of a boom-and-
bust solar P V
industry.
Instead, a
Source: SEDA, Dec 24, 2020 we l l - d e s i g n e d
policy frame-
work can ensure
the long-term
sustainability
of the solar PV
industry and
spawn a green
economy neces-
sary as nations
heal from a year-
long coronavirus
pandemic. — @
green
Source: KeTSA, Dec 29 2020

Need to revise quota system

By CHIN SOO MAU
President, MPIA
The NEM 3.0 programme shows
that the government is persistent
in promoting solar energy in the
country.
The Malaysian Photovoltaic Indus-
try Association (MPIA) is seeking and
waiting for clarifications regarding
the NEM 3.0.
  MPIA is also engaging with the
Energy Commission and the industry
as the NEM 3.0 guidelines have yet to
be released.
However, the MPIA hopes that
the government would revise the
allocated quota from 500 megawatts
(MW) to 1,500 MW because based
on data from the Sustainable Energy
Development Authority (S EDA),
more than 300 MW NEM quota was
approved in last year. About 100
MW were approved 2019. That was
a three-fold growth for the industry.
Having only 500 MW allocated
for the period of 2021-2023 means
that the industry will have negative
growth for the next few years. Amid
the economic challenges posed by
the Covid-19 pandemic, this does not
augur well with the industry and the
Malaysian economy.
Over the last few years, the solar
photovoltaic (PV) industry has been
on a very positive growth path, both
locally and globally. On the domestic
front, our local industry players have
been expanding their operation and
building up their workforce, creating
new jobs for the country, now they
are confronted with the adverse
growth scenario.
Therefore, we propose for the
government to increase the NEM
quota from 500 MW to 1,500 MW
for 2021-2023 to sustain the growth
momentum for the industry and
the national economy and con-
tribute to the conservation of our
environment.
January-February, 2021 | @green

cover story 11

NEM3.0 to boost
Review of NEM2.0 & NEM3.0
Feature NEM2.0 NEM3.0 Implication
Quota Allocation 50MW for residential


100MW for residential
450MW for others (Commercial, 100MW for Gov’t
industrial & agriculture) 300MW for commercial
The demand for rooftop solar PV based on NEM2.0
showed that the highest order came from C&I
(~90 per cent). The 300MW allocation for C&I sector
PV solar system usages
& industrial (C&I) under NEM3.0 is now reducing the distribution to only
60 per cent.
To boost solar energy usage and reduce energy cost, the Energy
Residential:
Single-phase 12kWac 4kWac Under NEM3.0, quota can be spread across more
and Natural Resources Ministry (KeTSA) announced on Dec 29,
3 phase 72kWac 10kWac residential applicants due to the reduced cap and 2020, the NEM 3.0, which will be in effect from 2021 to 2023.
increased allocation. Still, each applicant NEM 3.0 will offer 500MW quota within the next three years for
cannot maximise rooftop space to take advantage of residential, commercial and industrial energy users.
economies of scale and increase electricity savings.
KeTSA Minister Datuk Dr Shamsul Anuar Nasarah said the new
C&I No cap but have to comply 1MWac (Nett Offset) The new cap for C&I under NEM3.0 poses a double scheme has three initiatives: People NEM Programme, New GoMEn
with technical limits of NEM 5MWac (Nett Offset with constraint for premises which meet the technical
guidelines virtual aggregation) guidelines (at least of existing NEM2.0) and can go Programme and Programme NOVA.
beyond the 1MWac or 5MWac. Again, this limitation will
not allow the business owner to maximise rooftop space People NEM Programme
to take advantage of economies of scale, reduce their
carbon footprint & increase electricity savings. In a Under the People NEM Programme, the scheme will offer a “one-
world where the nett-zero commitment is demanded by on-one” offset mechanism which allows every kilowatt (kWh)
most developed economies, these companies' need exported to the grid to offset against each kWh consumed from the
(with exposure to these markets) will require them
to reduce as much carbon footprint especially if it grid.
also makes economic sense. It means every kWh generated will return and translate to higher
On the positive side is introducing an innovative concept potential earnings to the users.
of virtual aggregation (or virtual NEM) which allows
solar energy generated offsite to be shared by 3
“Residential users who installed photovoltaic (PV) systems will
accounts under the same business operator. This effort enjoy an offset rate of “one-to-one” for 10 years, and they will practice
is lauded as the electricity demand for each building the concept of self-consumption after the 10-year period ends.”
differs and buildings with large roof and low demand Self-consumption applies when electricity is generated for its own
can optimise their roof space with solar PV installations
through energy sharing. usage, and any excess is not allowed to be exported to the grid.
About 10,000 to 25,000 TNB domestic account holders or
Compensation Compensation based on 1-on-1 Compensation based on The SMP is not a concept well known to all. Some
Rate for surplus Systems Marginal Price awareness is needed among the business between 40,000 to 100,000 households in Peninsular Malaysia will
electricity for C&I (SMP) community, and the concern here is that, at this enjoy electricity bill reduction under this programme.
& Rollover juncture, the SMP is much lower than the displaced “Quota applications for this programme can be made to the
cost paid under the original NEM or NEM1.0.
Therefore, it remains to be seen how this change in Sustainable Energy Development Authority (Seda) beginning Feb 1,
compensation rate affects the decision to invest in 2021, until Dec 31, 2023.”
solar PV under the NEM3.0. As an alternative, the
government can consider opening the grid for third New GoMEn Programme
party access and allow excess solar electricity to
be traded instead. This will provide opportunities for For the New GoMEn programme (Government Ministries and
consumers to buy solar electricity from prosumers Entities), the ministry said PV systems, installed at government
(those with solar PV rooftops) at a competitive rate
with the regulated tariffs.
buildings, will implement the concept of “one-to-one” offset rate for
10 years and they too will practice the self-consumption concept
Rollover of 24 months Rollover of 1 month Under normal situation, business operations seldom after the 10-year period ends.
stop over a prolonged period. Hence, a rollover of one
month may deem to be reasonable. However, taking About 100 government agencies in Peninsular Malaysia will enjoy
the cue from 2020, the Covid-19 pandemic has reducing electricity bills amounting to RM6mil a month, said Shamsul.
forced business closures for several months. It is “Quota applications for this programme can be made to the Seda
times like this when extending the rollover beyond
one month will help preserve investors' cashflow beginning Feb 1, 2021, until Dec 31, 2023.”
from eroding, especially when normal business
operations are not allowed. Programme NOVA
After 10 years, NEM3.0 will fall under SELCO for all categories. Under SELCO, excess solar electricity will not be Meanwhile, to assist commercial and industrial electricity users
allowed for export. This differs with NEM, which helps affected by the Covid-19 pandemic, Shamsul said Programme
excess solar electricity to be export (within technical
compliances). Because of this fundamental
NOVA (Net Offset Virtual Aggregation) will assist entrepreneurs and
difference, the solar PV system for SELCO is designed local companies in reducing electricity bills and the cost of doing
differently from NEM. business.
For SELCO, the solar PV system is designed, so there According to Shamsul, users under this category will be able to sell
is least opportunity for solar electricity to be exported,
whereas this constraint is not in NEM. Businesses extra electrical energy generated by the PV solar system at a market
with seven days operations will benefit from SELCO price or a system marginal price (SMP) as an energy credit in the
as the chances of export are least compared to following month’s electricity bill.
companies with only five days of operation. Hence,
a switch of NEM to SELCO after 10 years may require Under this category, users will also be able to offset extra electrical
energy storage to be in place to store the excess energy through “virtual aggregation” for up to three electricity bills
electricity which otherwise will not benefit the under the same owner.
owners.
Again, as with the suggestion above, after 10 years, “Quota applications for Programme NOVA can be made to Seda
the grid should be opened for third party access and beginning Feb 1, 2021, until Dec 31, 2023, or until all quotas were
hence, allow excess solar electricity to be traded. distributed.
Enabling solar electricity trading at the distribution
level can help optimise the local grid usage, so losses “Details of this programme will be announced before applications
at the transmission grid are reduced and allow both are opened.”
prosumers and consumers to trade solar electricity at “The government hopes that the implementation of NEM3.0 will
prices agreeable to both parties.
enable more Malaysians, government agencies, companies and local
entrepreneurs to be involved in the agenda of the country’s latest
energy development aside from reducing electricity bills to reduce the
impact of Covid-19,” Shamsul added.
In summary, MPIA lauds the govern- Our Vision
ment direction and strongly urges that Everyone can generate their own electric- Nett Energy Metering 3.0 Implementation Mechanism
the NEM 3.0 application process and ity via solar PV.
NEM 3.0
implementation process remain precise
and straightforward. Our Mission Programmes People NEM New GoMEn NOVA

• To reform and democratise the elec- Domestic Government Buildings Commercial &
About MPIA tricity supply industry (generation, Industrial

Who We Are
The Malaysian Photovoltaic Industry Asso-
ciation (MPIA) is a non-profit organisation
representing the Malaysian solar industry.
MPIA is dedicated to the promotion of
solar energy and consists of members from
the local solar supply chain, including
manufacturers, service providers, system
integrators, consultants, insurance provid-
ers, training providers and academicians.
MPIA bridges communication among the
stakeholders and has been working with
the government to ensure the efficient,
ethical and professional growth of the
solar industry.
transmission and distribution). Offered Quota (MW) 100 100 300
• To make solar PV price competitive, Mechanism (roll-over) NEM 1:1 (12 months SELCO+ (1 month)
reliable, sustainable and one of main-
Offer Date Feb 1, 2021 Apr 1, 2021
stream sources of electricity supply
in the country via innovations and Offer Duration 3 years
incentives. Offset rate Current Tariffs System Marginal Price
• To achieve the highest level of profes- Offset period 10 years
sionalism, knowledge and competency
in the solar PV industry. After 10 years Self-Consumption (SelCo)
Single Phase: 4kWac Nett offset: 1MWac
Objectives Installation Capacity 1MWac/1 Account
Limit Three Phase: 10kWac Nett offset + Virtual
To achieve a national target of at least aggregation: 5MWac
12 per cent of total national electricity Qualifications Domestic Account Government Non-domestic
consumption (~10,000 MWp or 10 GWp) Holders Departments/ Agencies Account Holders
is supplied by solar PV by 2030. — @green

12 cover story
NETT ENERGY METERING 3.0
Winners, issues
and what’s next
Operators may want to ensure system stability in light
of potential intermittencies with solar
T
By A SPECIAL CORRESPONDENT
he Nett Energy Programme
scheme 3.0 (N E M3.0)
which announced a solar
PV allocation of 500MW by
the Minister of Energy and
Natural Resources Datuk Dr
Shamsul Anuar Nasarah on
Dec 29, 2020, was a much-
needed boost for the national
renewable energy programme and sus-
tainable agenda.
This also bodes well for energy transi-
tion agenda which shall manifest in the
national energy landscape.
Background
The first NEM scheme, or NEM1.0, was
introduced in 2016 (with a 500MW allo-
cation) as an incentive for greater solar
adoption. This was mainly on rooftops and
reduced dependence on fossil resources in
our electricity generation mix, thus reduc-
ing greenhouse gas (GHG) emissions,
which has saddled us in our compliance
with the UNFCC Paris Agreement.
Clearly, this NEM strategy value adds
the whole exercise. However, the initial
programme missed the target with only
meagre buy-in. The government improved
the offering with NEM2.0 in January 2019
which had seen the programme really
taking off. NEM2.0, with a quota of 500MW
up until December 2020, allowed excess
solar PV generated energy from consum-
er’s premise to be exported back to the grid
on a “one-on-one” offset basis, instead of
the displaced cost in the previous scheme.
The new offset ratio would shorten solar
investment - or heavy expense - recovery
period.
This has spurred some renewed interest
among residential and business owners
resulting in the full quota being snapped
up by November 2020.
NEM3.0 mechanism
With the rollout of the NEM3.0, the gov-
ernment has reinvigorated the offerings
by further making them attractive and
applicable to all applicants, even existing
NEM consumers.
The new scheme, in boosting for more
solar and reduction in energy price, will be
in effect from 2021 to 2023 and has three
new programmes - NEM Rakyat (target-
ing domestic consumers for electricity
bill reduction with a quota of 100MW
beginning Feb 1, 2021), NEM GoMEn
(targeting government buildings with an
allocation of 100MW also beginning Feb 1,
2021) and Nett Offset Virtual Aggregation
(NOVA) (targeting pandemic-challenged
industrial and commercial sectors with a
quota of 300MW beginning Apr 1, 2021).
The departure from the previous ver-
sion is that it allows an offset rate of 1:1
with a 12-month rollover for 10 years for
both NEM Rakyat and NEM GoMEn at
current tariff pricing.
If one unit of energy was generated in
NEM3.0 will inspire industrial and
commercial owners to plan their
energy consumption pattern up to three
accounts, perhaps paving the way for
future lobbying for more significant
quantum and locations.”
excess for the current month, the user
would be charged for less one unit of
energy the following month. The indus-
trial and commercial customers (NOVA)
will gain more as they are allowed to
use system marginal pricing (SMP). The
energy sold will be converted as an energy
credit in the following month’s electricity
bill and, after 10 years’ contract, enjoy
self-consumption onward, thus reducing
business costs.
In all situations, NEM2.0 users can even
join the new scheme once they complete
their current 10-year NEM2.0 period but
at SMP scheme for the next 10 years and
self-consumption for subsequent years.
Another innovation is the virtual NEM
where owners could re-distribute their
excess energy to their own buildings in
separate locations for up to three accounts.
Winners
Everybody wins in term of electricity bill
savings and the fact that excess energy can
be sold to a utility to earn credits to offset
future electricity bills. From an economic
point of view, NEM3.0 encourages growth
in renewable energy and incentivises
businesses in solar and job-creation.
The rakyat-targeting in term of solar
allocation means that the government
is serious in ensuring more equitable
outcome in any effective programme.
However, the biggest winners are the
industry and commercial players and
operators of worship places as they could
vie for the 300MW quota and sell excess
power at SMP and enjoy self-consumption
with a one-month rollover after the
10-year period ends.
All users are protected even when
they subscribed to the previous NEM2.0
scheme as they would not lose their 1:1
@green | January-February, 2021
offset benefits as they migrate to the
NEM3.0. This is sometimes termed as
grandfather clause in some countries as
government honours previous agreements
and entertain new rules for future cases.
NEM3.0 will inspire industrial and
commercial owners to plan their energy
consumption pattern up to three accounts,
perhaps paving the way for future lobby-
ing for more significant quantum and
locations.
The new scheme also permits
Malaysia-based foreign entities or MNCs
to participate in the NOVA option as long
as they have the national power utility,
Tenaga Nasional Berhad (TNB), billing
accounts.
The scheme will also allow more signif-
icant product differentiation and service
offerings where vendors could suggest
packages and create a new installation,
servicing, and maintenance opportunities.
Upon logging to one’s notebook or
smartphone, he or she may see even
e-commerce platforms such as Lazada
and Shopee are already catering for solar
PV installation. With greater competition,
the price for such installation service
might go down favourably in the future.
Lingering issues
The flip side advocates that conventional
power plants might see their portions of
the future generation mix being chal-
lenged and even substituted by the NEM
3.0 participants.
These renewable energy portfolios will
grow larger and larger while grid-wise,
the operators might want to ensure system
stability in light of potential intermitten-
cies with solar. That also brings up why
the grand initiatives have always pegged
down to solar – grid-connected solar
sources to be exact - and not others like
biogas, biomass and small hydro.
Also, critics of the 3.0 scheme will point
out that the system’s visible drawback is
that it is tied up to the national power grid
owner, viz, TNB as all interested players
to the scheme must have TNB billing
accounts.
Another conspicuous fact is that elec-
tricity users and players in Sabah and
Sarawak could only envy the opportunities
made available in the Peninsula.
Way forward and
other perspectives
For future editions or releases, the energy
fraternity and rakyat would surely wel-
come improvement and variation to the
product and service offerings at no less
favourable deals with built-in grandfather
clauses – as usual - in the schemes.
The formula in coming up with the
sizes needs to be seen in a wholesome
manner, and not incremental. This is for
grid system optimisation and stability.
There are various technical consider-
ations to be addressed, such as maximum
allowable grid penetration by solar - as the
grid was designed for conventional power
plants - and state of the reserve margin in
a generation.
To be fair, the needs of the grid owners
and operators should also be factored
in. In this regard, the role of energy or
battery storages to commensurate solar
sizes should be addressed as intermittency
issues are real and require engineering/
technical system studies.
Would the government be ready to allow
future NEM subscribers to install first and
apply later – backdated preferably- once a
new scheme is put on the board for those
missing the boat for the existing schemes?
Lastly, would the government provide
some avenues in the future for our friends
in Sabah and Sarawak to enjoy such a
NEM scheme? — @green
January-February, 2021 | @green 13

14 INDUSTRY
Sharbini spoke at a panel session titled “Corporate Leadership for the ASEAN We Want”.
Remaining committed
Sarawak Energy will continue to build on sustainability,
hydropower and regional ambitions
S
arawak Energy, Malaysia’s larg-
est renewable energy developer and
provider, recently shared its response
to the impact of Covid-19 on its busi-
ness operations while continuing to
build a sustainable energy future for
Sarawak and the region at the GO
ESG ASEAN Corporate Sustainability
Virtual Summit 2020.
The two-day summit themed ‘The Business
of Recovering Better – A Resilient & Sustainable
ASEAN by Design’, aimed to promote sustain-
ability thinking and strategies as part of ASEAN’s
economic reset post-Covid-19 by accelerating the
adoption of Environmental, Social and Governance
or ESG considerations among businesses.
Group Chief Executive Officer, Datu Sharbini
Suhaili, spoke at a panel session titled “Corporate
Leadership for the ASEAN We Want”, moderated
by Nitin Jaiswal, Head of Government Affairs &
Strategic Relations at Bloomberg LP, Asia Pacific.
Also on the panel with Sharbini were Corine
Tap (Senior Vice President for Aqua Indonesia
and Danone Waters SEA), Gunjan Soni (CEO for
ZALORA) and Dr Pakorn Peetathawatchai (Presi-
dent of The Stock Exchange of Thailand).
Sharbini said: “It is essential to be agile and
quickly adapt to crisis situations. Our primary focus
EVENT
Women
in energy
Sarawak Energy’s professional networking group
for women capped off a busy year of programmes
and activities that had moved into the digital space
with a Fireside Chat featuring women in senior
positions in their respective fields.
The Sarawak Energy Leading Women Network
(SELWN) brought together women leaders to share
their career pathways with about 400 employees of
Sarawak Energy recently.
The virtual Fireside Chat session titled “Discover
the Leader within You” featured panellists Siti Aisah
Adenan (SELWN Executive Champion and Sar-
awak Energy’s Senior Vice President for Corporate
Services), Dr Wei-nee Chen (Hibiscus Petroleum’s
is keeping the lights on for Sarawak throughout the
Covid-19 pandemic.
“Our fundamental ambition to grow regionally as
a provider and developer of renewable energy has
not changed, although our delivery mechanisms
and methods have transformed due to the restric-
tions in movement.
“The pandemic also catalysed change in the way
we run our business – it accelerated our aspiration
to be a digital utility by 2025 as well as our transition
into flexible work arrangements.
“We took transformative steps in changing the
way we work to remain efficient by learning to
achieve a lot more with the same level of resources.
We leveraged on technology to improve our busi-
ness operations’ efficiency whilst reducing the
number of staff on site.
“The latter has yielded some secondary benefits
– our estimates show that the average reduction in
carbon emission is 40kg per day for our HQ alone
from the reduced commuting.”
Sharbini added the development of renewable
and affordable hydropower in Sarawak supported
the diverse application of alternative renewables
like solar and hydrogen.
SEB was investing in Sarawak’s first large scale
floating solar plant at their Batang Ai Hydroelectric
Powerplant.
Vice President for New Energy Ventures) and Peing
Tajang (SELWN External Stakeholders Engagement
Co-Lead and Sarawak Energy’s General Manager
for Corporate Communication).
The session was moderated by Chief Executive
Officer of LeadWomen, Dr Marcella Lucas.
This Fireside Chat kicks off the S ELWN
Empowering Women Series, an initiative by
Sarawak Energy to promote workforce diversity
and inclusiveness in building a high-performance
corporate culture, aligned with the United Nations
(UN) Sustainable Development Goal 5 on Gender
Equality and Women Empowerment.
Siti Aisah said greater diversity and inclusion
at decision-making levels led to more robust
decisions.
“In promoting gender diversity, we are not talk-
ing about replacing men with women. Rather, we
are promoting a balance of competent men and
women whose different approaches and perspec-
tives can contribute to more considered decisions,”
she said.
@green | January-February, 2021
Meanwhile, their research into hydrogen and
collaboration with Petronas would enable them
to participate in future hydrogen value chain
activities, contribute to a sustainable energy future,
decarbonise their energy system. This will also aug-
ment what they were already doing hydropower to
provide clean, renewable and affordable energy
for Sarawak.
“Our main grid carbon intensity has decreased
by 76.5 per cent since 2009 with the move into large
hydropower generation, showing us the sustain-
ability benefits gained from renewable hydropower
over the past decade,” he concluded.
Good sustainability practices
Speaking at the closing ceremony of the 2-day
summit, Ban Ki-moon, the 8th UN Secretary-Gen-
eral said Sarawak Energy was the first Malaysian
company to become a signatory of the “Business
Ambition for 1.5°Celsius” campaign, creating value
for everyone.
“Its collaboration with UN Global Compact
Malaysia & Brunei to launch the Small Medium
Enterprise-Sustainable Development Goals (SME-
SDG) Toolkit shows great corporate leadership and
is a commendable effort to mobilise sustainability
actors for SDG 17 - Partnership for the goals,” said
Ban.
On the first day of the summit, UN Global
Compact Malaysia & Brunei and Sarawak Energy
launched the SME-SDG Toolkit for small and
medium enterprises who want to incorporate good
sustainability practice into their operations.
The free-for-use SME-SDG online Toolkit is a
step-by-step guide and incorporates a suite of tools,
manuals and other resources for SMEs to steer
them towards a more sustainable business model.
Sarawak Energy Senior Manager for Sustain-
ability, Mohamad Irwan Aman, also spoke at a
panel session titled “Sustainable Business Strate-
gies the ASEAN Way – From HOW to NOW!” along
with Pratima Divgi (Director for Hong Kong,
Southeast Asia and ANZCDP, CDP), Esther An
(Chief Sustainability Officer for City Developments
Limited) and Maria Victoria Tan (Head of Group
Risk Management and Sustainability for Ayala
Corporation).
The session, which was moderated by Sarimah
Talib (Head for Sustainable Development Manage-
ment from Petronas), discussed how businesses
implemented their sustainability agenda in the
face of a global pandemic and how sustainability
risks could impact an organisation.
“Our commitment to sustainability grew stron-
ger during the pandemic, and it could be seen
throughout the entire organisation,” Irwan shared.
“Every organisation runs into different issues
in their sustainability journey. We believe the way
forward is through reliance on the sustainability
community, where sharing good practices and
developing strategic alliances amongst organ-
isations will go a long way to help progress
sustainability agendas.” — @green
“We want to ensure our younger female talent
can learn from the different paths to success that
our speakers took. We want to showcase role models
and to encourage and facilitate more participation
of our women employees in decision-making
positions.”
On a question about women leaders being
emotional, Chen said it was gender stereotype.
But she agreed women could use their emotional
intelligence effectively in their leadership roles. She
also pointed out the attributes of a good leader was
more important than their gender or age.
Chen commended SELWN’s efforts in leader-
ship mentoring and providing support to women in
overcoming challenges in a male-dominated power
utility industry.
On the aspect of balancing career and personal
responsibilities, Peing said women should say yes
to leadership opportunities and from there, build
on their strengths and work on the gaps.
Chen realised that when it came to taking lead-
ership opportunities, men and women differed
January-February, 2021 | @green
100 years
of powering
Sarawak
Project and operational targets
on track in 2020 despite
Covid-19
S
arawak Energy’s annual media
update held recently showcased its
transformation journey and highlighted
corporate, operations and project mile-
stones for 2020 while navigating the
challenges of keeping customers and
staff safe over the ongoing Covid-19
pandemic.
The update was delivered by Datu
Sharbini Suhaili, Sarawak Energy Group Chief
Executive Officer. He also announced the energy
developer and power utility company would be mark-
ing one hundred years of powering Sarawak in 2021.
Also present were members of Sarawak Energy’s
Group Executive Committee and senior manage-
ment team. The media were updated on power supply
reliability improvements, the progress of rural
electrification, Baleh HEP, and major Transmission
Backbone projects and the ongoing digitalisation of
its operations and its future roadmap and regional
ambition. Sarawak Energy’s roots go back to 1921
when set up as a unit in the Public Works Department
to supply electricity to the public.
Today, the Sarawak government-owned corpora-
tion employs over 5,400 employees. It has a customer
base of 710,000 accounts, achieving a significant
sustainability milestone after focusing on renewable
hydropower development and generation to become
Malaysia’s largest renewable energy provider.
The focus on hydropower has enabled electricity
export to Kalimantan Barat, Indonesia, with an addi-
tional export customer’s prospect in 2023 to Sabah.
“Sarawak Energy has made tremendous strides
over the past 100 years in our transformation from a
traditional utility into a modern and agile company
and energy developer with regional ambition,” said
Sharbini.
“Our Sarawak Energy Excellence 2022 strategic
roadmap is a blueprint for uniting and focusing our
organisation as we work towards being on par with
the best utilities in the region.”
Sharbini also highlighted operational achieve-
ments in which improvements were made in
significantly. Where the men would jump into it,
the women tend to be cautious.
She advised: “If you want to survive and move
forward in a male-dominated industry when an
opportunity comes along, just jump into it. Good
opportunities are very hard to come by.”
When asked about what kind of attitudes or
attributes make the best leader, Siti Aisah said
that a leader had to walk the talk and be consistent
when making decisions. She also highlighted that
humility was a key attribute in leaders.
Chen agreed with Siti Aisah: “Humility is very
important. Once you are a leader, you should not
put yourself in an ivory tower.”
She added leaders needed to demonstrate lead-
ership by example through their capability and
by playing by the same rules. She also believed a
leader should have a strong vision for the people
and should not lead by fear.
“Learn to build a relationship based on trust,
open and frank discussion, and not on fear.”
Peing advised: “Find your leadership style that
enhancing the customer service experience with
customers rating Sarawak Energy over 95.06 per
cent as of Dec 14 compared to 77.42 per cent in 2016
measured by its Customer Satisfaction Index.
“Our System Average Interruption Duration Index
or SAIDI for Generation, Transmission and Distri-
bution has improved by 70 per cent since 2016. We
recorded 72.5 minutes in November 2020 compared
to 242 minutes in 2016,” he said.
SAIDI records the number of minutes a customer
experiences power supply interruption.
Focus on hydropower
Despite the effects of the Covid-19 pandemic, Sarawak
Energy kept its projects on track with the Sarawak
Government and the State Disaster Management
Committee’s support and guidance.
Its ultimate mission was to provide full electrifica-
tion for Sarawak by 2025 by working closely with the
Ministry of Utilities Sarawak. Since 2009, has elec-
trified about 150,000 households under the various
rural electrification strategies. It expects to reach 97
per cent rural electrification in the next few months.
Sarawak Energy’s continued focus on hydropower
is on track with the 1285MW Baleh Hydroelectric
Project expected to be completed by 2026 following
the diversion tunnels’ completion in October this
year, a critical package in the construction of the
main dam.
This is in addition to Sarawak Energy’s efforts to
reinforce its supply system with significant progress
achieved on the 500kV Backbone and the Northern
Grid Extension project to connect Northern Sar-
awak areas to the primary grid. The Northern Grid
Extension project was implemented to extend the
transmission grid across the length of Sarawak and
create injection points for potential power export to
Sabah to realise the Borneo Grid.
“In progressing power export discussions, we
signed the Term Sheet with Sabah Electricity on
Oct 21, 2020 which sets out the intention for the
interconnection to be completed by May 31, 2023 for
30-50MW over 15 years.
suits your personality. Be credible and authentic
throughout the journey, believe in yourself and
most importantly, be excellent at what you do.”
The session also highlighted the importance
of an empowering network and support circle in
progressing up the leadership ladder.
SELWN was launched in 2017 to develop lead-
ership competencies and capabilities of women
employees of Sarawak Energy and to maximise
their potential by supporting their career devel-
opment aspirations. The formation of SELWN is
in line with Malaysia’s target of achieving 30 per
cent women representation on boards and senior
management teams.
The company is pushing forward to enable
more female employees to ascend to leadership
positions through outreach and mentoring activi-
ties, networking and sharing sessions, forums and
capacity-building programmes.
SELWN’s External Relations workstream looks
at best practices at national and regional levels for a
broader understanding and application of inclusion
INDUSTRY 15
Sharbini (top
left) dialling
in to present
the business
updates to
the media
members in a
virtual hybrid
session. Also
dialling in
were Sarawak
Energy GEC
members
and Heads of
Departments.
“This is a positive development which brings us
closer to realising the Borneo Grid and subsequently
to grow into a regional powerhouse,” said Sharbini.
Sharbini attributed many of the improvements and
accomplishments to the company’s strategic pivot to
technology and digitalisation.
He added: “We took transformative steps in chang-
ing the way we work to remain efficient by learning
to achieve a lot more with the same level of resources
and found ways to capture opportunities from man-
aging the crisis and make them work for us instead.”
Sharbini added Sarawak Energy had started
digitalising its facilities with automation projects
essential to adapt to the disruptions of Industry 4.0.
The team pursues remote access capability for its
power plants and incorporates virtual reality (VR)
technology into technical training.
Before the update, members of the media expe-
rienced a virtual reality tour of the 2,400MW Bakun
HEP to show them how electricity was generated,
transmitted and distributed till supply reaches Sama-
laju Industrial Park. The tour was accompanied with
a briefing from James Ung, Chief Executive Officer of
SEB Power, Sarawak Energy’s generation arm.
James said that hydropower development has
supported Sarawak’s industrial growth, created job
opportunities and allowed Sarawakians to enjoy the
lowest power tariffs in Malaysia and amongst the
lowest in the region.
“Sarawak also focussed on hydropower to enhance
energy security and reliability to power Sarawak’s
ambition to achieve developed status by 2030,” added
James.
“This is through hydro-industrialisation from
SCORE while providing the foundation to accelerate
rural electrification, to meet United Nations Sustain-
able Development Goal (UN SDG) #7 on access to
renewable energy and modern power systems.
“Sarawak’s hydroelectric plants have also proven to
have successfully reduced the severity of downstream
flooding situations during unseasonal localised heavy
rainfall by holding back large volumes of rainwater
all year round.” — @green
and diversity in Sarawak Energy’s workplace.
As part of this, the team brought together Petro-
nas, Maybank, TNB and TalentCorp to share the
successes and challenges of Flexible Work Arrange-
ments at a SELWN Roundtable Sharing Session in
September this year. It was part of the Women’s
Empowerment Principles workshop by UN Women
and UN Global Compact Office in November 2020.
In recognition of Sarawak Energy’s efforts,
the company received a platinum award for the
Empowerment of Women for SELWN at the 11th
Annual Global CSR Summit and Awards 2019.

16 ENERGY
Shamsul, together with his deputy Ali Biju, Secretary-General, Datuk Zurinah Pawanteh,
during the SAVE 2.0 Programme Launching Ceremony. They were joined by representatives
from Shopee and Lazada.
SAVE 2.0
Save Money,
Save Energy, Save
the Environment
KeTSA seeks to
encourage, nurture,
and advocate energy-
efficiency and the
savings that come
from it, especially for
domestic users
Shamsul, Ali Biju and Zurinah
were joined by representatives
from the Federation of Malaysian
Electrical Appliances Dealer
Association (FOMEDA) and the
Malaysian Air-Conditioning
& Refrigeration Association
(MACRA).
T
H E recently-launched Sustainability
Achieved Via Energy Efficiency (SAVE) 2.0
Programme grants an RM200 e-Rebate to
domestic households that purchase energy-
efficient air-conditioning units or refrigerators
with 4-star or 5-star energy efficiency labels
from the Energy Commission.
The programme was announced on Jan
7 by the Minister of Energy and Natural
Resources, Dato’ Dr Shamsul Anuar Nasarah in Putrajaya.
The official tagline for the SAVE 2.0 is “Save Money, Save
Energy, Save the Environment”, which reflects the three
core objectives of the programme’s execution through the
reduction of monthly electricity bills, energy consumption,
carbon footprint and greenhouse gas emissions.
Through this programme, the ministry seeks to encour-
age, nurture, and advocate energy efficiency and the
savings that come from it, especially for domestic users.
Additionally, the programme also seeks to increase
the total number of energy-efficient electrical appliances
(4-star or 5-star energy-efficiency labels from the Energy
Commission) in the market.
The official microsite for SAVE 2.0 programme (www.
saveenergy.gov.my) was also introduced during the launch.
The microsite serves as the primary reference point for
@green | January-February, 2021
The programme’s main purpose is
to promote and increase the public’s
awareness of the vital importance of
utilising energy-efficient electrical
appliances, specifically energy-
efficient air-conditioning units and
refrigerators.”
all general public members interested in participating in
the event.
The official list of Registered Electrical Appliance Retail-
ers can also be viewed through this microsite, as well as
the official list of certified energy-efficient air-conditioning
units and refrigerators.
The eligibility requirements for the SAVE 2.0 programme
are:
• Malaysian citizen
• Registered consumer of Tenaga Nasional Berhad, Sar-
awak Energy, Sabah Electricity Sdn Bhd, or NUR Power
Sdn Bhd (NUR Power)
• Purchase energy-efficient air-conditioning units or
refrigerators in 2021 either via direct purchase (Regis-
tered Electrical Appliance Retailers) or online purchase
(Lazada and Shopee)
• One electricity bill account may redeem one e-Rebate
on a first-come, first-served basis. This programme will
benefit 150,000 households.
The primary benefits of the SAVE 2.0 Programme for the
Malaysian public users (domestic households) are:
• Reduce monthly electricity bills
• Lower total energy consumption
• Minimise carbon footprint
• Prevent greenhouse gas emissions
The programme’s main purpose is to promote and
increase the public’s awareness of the vital importance of
utilising energy-efficient electrical appliances, specifically
energy-efficient air-conditioning units and refrigerators.
The ministry hopes the programme’s success can inspire
and encourage Malaysians to utilise more energy-efficient
electrical appliances to save on both monthly electricity
bills and total energy consumption.
The RM200 e-Rebate can be redeemed through two
distinctive purchase modes: direct purchase through
Registered Electrical Appliance Retailers registered with
Sustainable Energy Development Authority Malaysia
(SEDA Malaysia), and online purchase through e-com-
merce platforms (Shopee and Lazada).
For direct purchase, users must first purchase an
energy-efficient air-conditioning unit or refrigerator from
Registered Electrical Appliance Retailers.
Next, the Registered Electrical Appliance Retailers will
help users apply for the RM200 e-Rebate through the dedi-
cated SAVE 2.0 online system. The RM200 e-Rebate will
be issued and redeemed during the purchasing process.
For online purchase, users must first apply for the
e-Rebate via Shopee or Lazada. SEDA Malaysia will then
verify the eligibility requirements received from Shopee or
Lazada, which takes 14 working days (weekends excluded).
After this processing period, they will then inform users
that their application is successful, with a coupon code
provided for the RM200 e-Rebate. Users can then use the
coupon code (valid for 30 days after being issued) and
redeem the e-Rebate on their purchase.
This programme is an initiative under KeTSA, imple-
mented by SEDA Malaysia and supported by the Energy
Commission (ST).
The programme is also supported by implementing
partners TNB, SEB, SESB, NUR Power, Shopee and
Lazada. — @green
Shamsul officially launches the SAVE 2.0 Programme.
January-February, 2021 | @green

EVENTS 17

REGTech SABAH 2021

Mid-term
action plan
A mid-term review of the National Energy
Efficiency Action Plan is being done to further
improve energy efficiency in the country

T
BY KHIRTINI K KUMARAN

he gove r n me nt is conducting a
mid-term review of the National Energy
Efficiency Action Plan (NEEAP).
Undersecretary of the Energy Efficiency
Division from the Ministry of Energy and
Natural Resources, Wong Tin Song said:
Hopefully by mid this year, we can come out
with the mid-term action plan to see what
and how we can improve on the NEEAP.
He said the five critical initiatives under the NEEAP
were The Promotion of 5-Star Rated Appliances; Mini-
mum Energy Performance Standards (MEPS); Energy
Audits and Energy Management in Buildings and Indus-
tries; Promotion of Cogeneration; and Energy Efficient
Building Design.
Wong was presenting a paper on ‘National Energy Effi-
ciency Initiatives in Malaysia’ at the second Renewable
Energy & GreenTech Sabah 2021 (REGTech Sabah 2021)
held virtually on Jan 18-12, 2020.
​The keynote address was delivered by the Guest-of-
Honour, Deputy Chief Minister and Minister of Industrial
Development of Sabah Datuk Dr Joachim Gunsalam.
Moderated by Dr Wei-nee Chen, Hibiscus Petroleum’s
Vice President for New Energy Ventures, the speakers for
the first two presentations were Wong Tin Song and the
Deputy Director of Electricity Licensing from the Energy
Commission Malaysia, Zamali Zamin.
Malaysia’s commitment towards energy efficiency can
be traced back to 1975 with the introduction of its first
energy policy, the National Petroleum Policy, followed
by National Energy Policy (1979), National Depletion
Policy (1980), Four-fuel Policy (1981) and Five-fuel Policy
(2001).
Wong noted that the National Energy Policy 1979 (NEP
1979) was long overdue and that the government was
drafting the next NEP to suit the current developments
and environment better.
“In 2010, we had the National Renewable Energy
(RE) Policy and the formation of the Sustainable Energy Wei-nee, in moderating the session, said the industry
Development Authority Malaysia (SEDA).” had always known that EE was truly the lower of the
Subsequently, the NEEAP was introduced for 10 years, hanging fruits in the sustainable energy agenda.
starting in 2016. “In that regard, it is most appropriate that we should
Wong also shared some of the initiatives under the 11th address EE first before RE,” added Wei-nee.
Malaysian Plan, including the Energy Audit Conditional Public and private generation licences available in
Grant (EACG) for industry and commercial sector, and Malaysia are for the feed-in tariff, LSS, NEM, Self-Con-
retrofitting government buildings and hospitals with sumption (SELCO), Solar Leasing, and Supply agreement
energy and cost-saving LED lights and chillers. RE (SARE).
The two-day REGTech Sabah 2021 online confer-
Solar biggest contributor to RE ence featured 17 presentations from industry players.
Zamali presented a paper on ‘Renewable Energy Land- Meanwhile, the online business matching platform was
scape within Regulated Environment In The Case of available from Dec 23-2020 to Jan 29, 2021.
Peninsular Malaysia’. Wong Tin Song REGTech Sabah is the first and only one of its kind
In Malaysia, renewable energy (RE) contributors are in Sabah. It serves as a dedicated platform where the
solar, biogas, biomass, hydro and geothermal. Large Scale renewable and green technology industry in Malaysia
Solar (LSS) is the main contributor of RE capacity in and beyond come together to share information, discuss
Malaysia, and the total connected capacity is 734.76MW. challenges, opportunities and ideas for advancing Sabah’s
“Solar is the biggest contributor in RE in Malaysia,” he renewable energy and green technology sector through
said, adding that in Peninsular Malaysia, the baseload for online or virtual.
electricity generation is heavily reliant on coal and gas. The first REGTech was held in November 2017 in a
Meanwhile, in Sabah and Sarawak, the electricity physical setting. — @green
generation mix includes hydro, biomass, biogas and
solar, and therefore is quite green compared to Peninsular
Malaysia.
The two-day REGTech Sabah 2021 online conference
Nett Energy Metering (NEM) 3.0 and New Enhanced featured 17 presentations from industry players.
Dispatch Arrangement (NEDA) for solar were introduced
to enhance Malaysia’s RE and solar penetration.
Meanwhile, the online business matching platform was
Zamani also shared on the licensing policy under the available from Dec 23-2020 to Jan 29, 2021.”
Electricity Supply Act 1990 (Act 447).
 @green | January-February, 2021

18 event

RE boost
for economy
KeTSA Minister Shamsul says Malaysia will
strive to attract more investment for clean
energy transformation

M
alaysia is also looking an address to the 11th IRENA Assembly Energy Policy Planning, he said Malaysia
into Renewable Energy recently. would strive to attract more investment
as the new areas and “These two initiatives were also for clean energy transformation, includ-
sources of economic coupled with the requirements for greater ing spearheading and scaling up the
growth to bring its econ- local content and local participation as development and deployment of RE.
omy back to normality. an effort to revive the country’s economy “We envisage that RE adoption in
Minister of Energy through economic spillover and job Malaysia will continue to grow. Malaysia
& Natural Resources creations. has set a target of 31 per cent RE in power
(KeTSA) Datuk Dr “These initiatives were estimated to capacity in 2025 and 40 per cent in 2035.
Shamsul Anuar Nasarah said accelerating harness an investment of US$1.5 billion The spillover effect from RE develop-
the RE sector’s growth proved to be among and create 18,000 new job opportunities.” ment will benefit the people and country,
the most effective immediate actions that Shamsul acknowledged there was a through jobs, multiplier effect and wealth
can be undertaken for economic recovery. greater awakening among countries on creation, with sensible management of
“Thus, a one gigawatt worth of tender the importance of energy transition. More energy and natural resources,” he added.
contracts for large scale in solar and a and more countries were now venturing He thanked IRENA for taking various
500MW of rooftop solar were announced into the development of RE for economic measures to ensure its operations and
as part of Malaysia’s broader Covid-19 recovery. in continuing its role to spearhead the
recovery measures,” Shamsul said in On Renewable Energy and Future development of RE globally. — @green

LOW CARBON

Nett-zero emissions by 2050

The International Energy
Agency recently announced it would
produce the world’s first compre-
hensive roadmap for the energy
sector to reach nett-zero emissions
by 2050 as it further strengthens its
leadership role in global clean energy
transitions.
The new special report, The
World’s Roadmap to Nett Zero by
2050, will detail what is needed from
governments, companies, investors
and citizens to fully decarbonise the
energy sector and put emissions on a
path in line with a temperature rise
of 1.5 degrees Celsius.
It is part of a series of new IEA
projects to support efforts to reach
global energy and climate goals.
This new roadmap will be released
on May 18 and build momentum
ahead of the COP26 Summit in
Glasgow in November, under the
United Kingdom’s presidency.
Dozens of countries – including
most of the world’s largest econo-
mies – and many leading companies
have already announced plans to
bring their emissions down to zero
by around the middle of this century.
But much work remains to be done
to translate these ambitious targets
into actual reductions in emissions.
“The energy that powers our
daily lives and our economies also
produces three-quarters of global
emissions. This means our climate
challenge is essentially an energy
challenge. The IEA is determined to
tackle that challenge and lead global
clean energy transitions,” said Dr
Fatih Birol, the I EA’s Executive
Director.
“Our roadmap to nett zero can
play a vital role in helping countries
identify and implement the actions
needed to achieve climate, energy
security and affordability goals.
Nothing short of a total transforma-
tion of our energy infrastructure will
be required. That calls for decisive
action this year, next year and indeed
every year to 2050.”
Engagement with
major economies
COP26 President Alok Sharma said:
“The IEA’s plan to produce a path-
way to nett-zero global emissions
by 2050 is another important step
for climate action. This will make
clear the actions countries must take
individually and collectively to meet
that goal.”
Driving a more potent global
consensus on nett-zero's pathway
will be a crucial priority for the IEA
over the coming years. The Agency
also intends to improve global clean
energy transitions in other significant
areas through 2021 and beyond.
It will expand efforts to support its
members and partners in meeting
their climate ambitions, and play
a more significant role in tracking
national commitments. This includes
working with governments to develop
more robust mechanisms that build
confidence that they are not alone in
taking the necessary steps to keep
their climate promises.
The I EA also announced that
reinvigorating international energy
cooperation will be a significant
theme of the 2nd IEA Clean Energy
Transitions Summit, following the
first event held last year.
This year’s Summit will be co-
hosted with the UK Government
on March 31. It will focus on how
governments can work together
more effectively to ensure long-term
net-zero targets are translated into
concrete action in the run-up to
COP26.
“International collaboration
is at the heart of the UK’s COP26
Presidency, and I am proud that the
UK Government will co-host the
COP26-IEA Clean Energy Transitions
Summit to help accelerate the global
shift to clean, affordable and resilient
energy,” said Sharma.
In parallel, the IEA will continue to
support a secure and inclusive global
energy system.
It announced a new high-level
global commission headed by
Prime Minister Mette Frederiksen
of Denmark. It will bring together
government leaders, ministers and
prominent thinkers to explore how
best to empower citizens to benefit
from the opportunities and navigate
the disruptions resulting from clean
energy transitions.
The new commission, Our Inclu-
sive Energy Future, will consider
the social and economic impacts on
individuals and communities and
issues of affordability and fairness,
to put people at the heart of clean
energy transitions.
International collaboration
The commission’s meetings will be
chaired by Danish Energy, Climate
and Utilities Minister Dan Jørgensen,
resulting in critical recommenda-
tions in advance of COP26.
The IEA’s special projects for 2021
also include the release next week
Dr Fatih Birol
of new global data on emissions of
methane, a potent greenhouse gas,
along with a detailed guide for poli-
cymakers and regulators seeking to
increase their ambitions to cut those
emissions.
To help ensure countries and com-
panies are well prepared to accelerate
the deployment of new technologies,
the IEA will produce a new special
report in April on The Role of Critical
Minerals in Clean Energy Transitions.
The IEA remains committed to
deepening its engagement with
major emerging economies – such
as Brazil, China, India, Indonesia and
South Africa – and supporting them
to develop and implement policies to
reach their energy and climate goals.
To help ensure that clean energy
technologies are available to all coun-
tries, the Agency will also publish a
special report on Financing Clean
Energy Transitions in Developing
Economies.
It will be produced in collaboration
with the World Bank and the World
Economic Forum (WEF) and released
at the WEF’s Special Annual Meeting
2021 in Singapore in late May.
“Taken together, the projects we
are announcing reflect our commit-
ment to lead the global clean energy
transitions at a critical time. We want
to address the challenge of climate
change with sustainable, resilient
and secure energy systems,” said Dr
Birol. — @green
January-February, 2021 | @green 19

BERJAYA EnviroParks Sdn Bhd

BERJAYA Energies Sdn Bhd

The Bukit Tagar Sanitary Landfill (BTSL) developed by Berjaya

EnviroParks is the premier sanitary landfill in Malaysia and one of the
largest and most advanced engineered sanitary landfill in South East Asia.

BTSL is classified as a Level 4 landfill under the government’s technical

guideline for Sanitary Landfill Design and Operation published by the
Ministry of Housing and Local Government.

With 120 million metric tonnes of air space capacity for municipal solid
waste and other non-toxic waste, BTSL is capable of providing over 65
years solution for solid waste management in Klang Valley. Berjaya
Energies, a subsidiary of Berjaya EnviroParks, is currently participating
under SEDA’s Feed-in Tariff (FiT) programme to generate 10MW
Renewable Energy by harnessing the methane rich landfill gas.

Berjaya EnviroParks Sdn Bhd

Berjaya Energies Sdn Bhd
09-03 & 09-05, Level 9, East Berjaya Times Square, No. 1 Jalan Imbi, 55100 Kuala Lumpur
Tel: +603-2688 6333 | Fax: +603-2688 6332 | E-mail: enquiries@kbenviro.com.my
www.kbenviro.com.my

AMITA BERJAYA Sdn Bhd

Sustainable Resource Management Centre

Amita Berjaya is licensed by the Department of Environment Malaysia for

the management and transportation of Scheduled Waste under the
Environment Quality Act 1974.

Amita Berjaya’s pioneering technology achieves sustainability of resources

by adopting the ‘Cradle-to-Cradle’ principle in-line with the government’s
Green Industry Strategic Plan where Scheduled Waste is recycled using
our proprietary co-processing technology and know-how for use in the
cement industry.

Amita Berjaya Sdn Bhd

09-04 & 09-06, Level 9, East Berjaya Times Square, No. 1 Jalan Imbi, 55100 Kuala Lumpur
Tel: +603-2688 6333 | Fax: +603-2688 6332 | E-mail: enquiry@akbk.com.my
www.akbk.com.my

20 opinion
Is winning an
auction a good
thing?
Auctions are preferred tool to award renewable
energy projects around the world
T
he year 2020 gave tribute to Robert Wilson
and Paul Milgrom on their work on auctions’
theory. Their work demonstrated how auction
designs can yield different outcomes, and spe-
cifically, the role information – or lack thereof
– can play in shaping a buyer’s bidding strategy.
Power
Could this be applicable in Malaysia’s solar
tenders where forward projection curves are
Point used on solar panel prices? Outcomes are likely
skewed to bidders with information that overestimates the
value of the solar panel prices.
By Ir KEVIN HOR As a result, the winning bidder may lose out and get stuck
having to complete a project that is not worth it. Things only
worsen when the selling price of the product/commodity
offered at the auction is variable.
Auctions have been used as the preferred tool to award
renewable energy projects worldwide. They have proven to
be a handy tool to reduce procurement costs of renewable
energy and help reveal their actual costs simultaneously.
With near-zero apparent setback to governments when
they employ such procurement strategies, there is often a
disparate self-serving interest for the procuring party to
bewitch the “winner’s curse” on participants.
Despite knowing that being too aggressive has its draw-
backs, most participants, however, are still bound by the fear
that there will always be an entity that imperfect information
will cause the bid to be overtly aggressive, leading them to
be disqualified in the auction.
A hint of this phenomenon may be visible in project
developers’ delays in completing the Large Scale Solar 1
and 2 projects.
Recent renewable auctions in India and Brazil had
employed the simultaneous bid multi-round auction
design where bid prices of previous rounds are shared
@green | January-February, 2021
anonymously among bidders so that bidders can be more
confident in their bidding.
Proponents of this methodology claim such a design allow
participants to gain information from other participants’
evaluations. It gives them the confidence to bid aggressively.
At the same time, the government has also been keen to
promote the New Enhance Dispatch Agreement (NEDA).
Future large scale renewable energy tenders could con-
sider a combination of multiple interlinked offers or offers
with a range of installed capacity or a project with various
energy volume commitments, the remaining volume being
sold on the wholesale market.
Recent experience in Portugal and Germany could
provide new insights into how auctions could be opera-
tionalised in Malaysia.
In August 2020, Portugal organised PV auctions for
700 MW of grid connection capacity. The auction was for
standalone grid projects with capacity ranging from 10 to
110 MW where the winner would be awarded based on the
lowest price criteria.
While on the onset this may not seem innovative, the
auction was different as it put three various support schemes
in direct competition with each other as participants were
free to choose any of the following methods to develop their
financial models:
1. A classical Power Purchase Agreement (PPA),
2. An ex-ante fixed premium to be paid by the project to
the Portuguese government for the rights to connect the
project on the merchant market without energy storage,
and
3. An ex-ante fixed premium to be paid by the project to
the Portuguese government for the rights to connect the
project on the merchant market with energy storage,
a battery with one-hour storage of 20 per cent of the
installed PV capacity.
Fixed tariff option
In all cases, the awarded solar plants will receive their
primary revenues from their production’s daily sale to the
wholesale market as any other plant operating in their
market.
In the Fixed Tariff option, the awarded solar plant will
have to pay back to the National Electrical System any rev-
enues that exceed the awarded Fixed Tariff. It will receive
from the National Electrical System the lost revenues in case
the average Daily Market Price they received is lower than
the awarded Fixed Tariff.
In the Malaysian context, at first glance, it is likely that
one’s assumption to be that Scheme 1 to be oversubscribed
as it is as per status quo and it provides for indeed in the
project receivables.
Scheme 2 may attract more experienced developers with
no takers for Scheme 3.
You may be surprised to learn that despite the complexity
of Scheme 3 and the uncertainties in the scheme’s revenues,
it was this scheme that attracted the most interest among
bidders.
More than 69 per cent of the winning bids were from
this category. This was followed by Scheme 2 garnering 25
per cent of the winning submissions and finally Scheme 1,
which only attracted one per cent of the bidders.
The Portuguese authorities were anticipating the need
for a subsidy for Scheme 3. But the premium level turned
out to be negative, meaning that, to access the grid injection
points, the project developers will pay a fee to the Portuguese
government.
Staying true to an auction’s intention, one would imagine
that the winners are the project developers. However, the
biggest winner would have been the Portuguese government
itself, who are to be paid by the project developers for the
rights to connect their solar PV projects to the grid while
taking a full merchant exposure.
At the same time, Germany had initiated a test auction
which allowed for combined technologies projects. Auction
participants bid for an ex-ante premium and the winners are
the ones offering the lowest ex-ante premium.
Participants generate their revenue from their projects
from energy sold under the open market price and the
ex-ante premium in €/MWh. From the 677 MW of project
awarded, 394 MW were combined technology projects
which still had a lower ex-ante premium to be paid by the
government as compared against the traditional 20-year
PPA.
Standalone solar projects also had a lower ex-ante
premium. This again shows that developers are no longer
afraid of market risk and complicated solutions with many
uncertainties. — @green
Kevin Hor is a registered professional engineer as well as
a registered electrical energy manager.
January-February, 2021 | @green

opinion 21

Building blocks
at a scale not only active users but also active creators. We
must start minting them immediately, at scale.
As Tiit Paananen of Skype, one of Estonia’s born unicorns,
previously noted: “Your capability not only to use but also

for Malaysia 5.0

to create IT components will give you a competitive edge”.
Notably, Estonia has been introducing programming and
coding to children as young as seven years old for more than
a decade by now. Not surprisingly, the country is one of the
leaders in terms of the number of unicorn companies born.
The active creator approach must be prioritised over a
mere user of technology approach starting from the primary
Humans must be trained to excel at something school level. A great emphasis should be placed on teaching
programing logic, building algorithms, functional program-
which will remain out of AI reach for at least some ming, object- and service-oriented programming (even at
time to come the elementary level).
These are essential tools to learn, understand and eventu-

A
ally see the modular and complementary nature of the 4IR
frontier technologies such as blockchain, AI, IoT and many
s Malaysia’s visionaries begin to champion more to come.
Malaysia 5.0 initiative, the stumbling question
is whether we will have sufficient human SHAKEN, By imbuing this healthy modular thinking, we can pro-
duce individuals who can become visionaries of the tech
capital at every level to successfully carry this
initiative into the future.
NOT STIRRED future — the backbone of the country’s economic growth and
prosperity, who can clearly see how revolutionary technolo-
Malaysia 5.0 initiative is inspired by Soci- BY Margarita gies can be applied specific socio-economic problems and
ety 5.0, a concept proposed by the Japanese Peredaryenko elevate the human life. And this is the essence of Society 5.0.
government and wholeheartedly embraced Strengthening programming logic and modular thinking
by its entire nation back in 2016. Even before would also enhance the desired human skills like imagina-
Japan, few other countries introduced similar national tion, synthesise the conceptual ideas and eventually create
plans, including, for example, Estonia (e-Estonia), Germany knowledge and sound judgment.
(Industrie 4.0), and Singapore (Smart Nation).
Importantly, simultaneously adopting these plans, the Transcending the humanities/sciences divide
above countries initiated rigorous educational system To produce justly balanced individuals who can apply sci-
reforms seeing education as the critical success factor. ence and technology innovative solutions to the real-world
Analysing educational system changes introduced by socio-economic problems, there should be no room for seg-
these countries a few critical and conspicuously common regation of the humanities and math and science subjects.
trends can be discerned. The first is focus on developing Even though the Malaysia education system has become
human strengths. The second is the very early inclusion of stream-less since 2020, the students can still freely decide
4IR elements into the curriculum. The third is transcending The higher which subjects, STEM/non-STEM to take. Therefore, this
the humanities/sciences divide. does not remove the barriers between subjects and disci-
progression of plines effectively.
Focus on human strengths
In the context of this discussion, it is somewhat errone-
knowledge is The approach is to have a standard, well-balanced set of
subjects, STEM, and non-STEM, which all students must
ous that the early AI systems were built on the principle of wisdom, which can take up until the university level. Even at the university level,
memorisation, pattern matching, and knowledge recall,
which was soon shown to be a weak approach.
make the best and perhaps, at least for the first few years of education math,
data science and tech should be made compulsory.
The machine’s attempt to find a solution to a problem most proper use of Some of Singapore universities, for example, go as far as
that was not previously encoded into its memory would
lead to a combinatoric explosion. As such, the machines
knowledge, sensing making the computational thinking, statistics, and program-
ming essential requirement regardless of major, humanities
were taught how to independently create their own rules the universal laws or science.
of data interpretation.
Why is it then that even when the machines are taught
and relationships This approach will also help increase job mobility which
is not actually a problem or some undesired effect of 4IR but
creativity, we still test students’ ability to simply recall stretching beyond somewhat the innate and, in fact, desired characteristic of
knowledge in our curriculum? In the era of google-search
and copy-paste culture, the highest levels of Bloom’s tax-
the known models or 4IR reality.
Developing justly balanced individuals, all prepared and
onomy should have disproportionally greater importance seeing the unseen.” equipped for this extremely fluid and dynamic reality will
for the purpose of curriculum development. Humans must reduce unemployment and underemployment problem.
be trained to excel at something which will remain out of All the above changes in the education system are crucial
AI reach for at least some time to come. and have to be made immediately if we want to succeed in
The higher progression of knowledge is wisdom, which Malaysia 5.0 as other nations’ experience indicates.
can make the best and most proper use of knowledge, sens- Let us rephrase it that time, and 4IR tide wait for no man.
ing the universal laws and relationships stretching beyond When it comes to education, any small change today or a
the known models or seeing the unseen. delay to make such a change is truly felt and amplified, as
This unseen will remain inaccessible to AI, which is an exponent of time, years down the road.
trained on the physically available data. Therefore, the focus Given the speed of development brought about by science
of education from the very early age should be on ethics, and technology innovations, every minute of procrastination
complex communication, teamwork, creativity, ability may cost us years of falling behind. — @green
to see non-obvious links between the concepts, ability to
synthesise and produce knowledge, not just consume it. Dr Margarita Peredaryenko is Chief Research Officer
This kind of training will eventually supply not knowl- at EMIR Research, an independent think tank focused on
edge - but wisdom -workers who would be in the ultimate strategic policy recommendations based on rigorous research.
demand of Society 5.0.
Early inclusion of 4IR
elements into curriculum
When we say that 4IR elements must be introduced in the
school curriculum, we must also ensure that correct “ele-
ments” are presented starting from the primary level.
It is a self-deception to think that we are familiarising
children with 4IR by merely introducing them to the use of
technologies or allowing them to play, even though educa-
tional, computer games in class. Introduction to 4IR needs
to be taken more seriously.
A user of technology approach might be sufficient for
society 4.0 or information society. However, it is clearly an
inferior approach to transit to a community comprising indi-
viduals who can skillfully navigate in 4IR reality—Malaysia
5.0 as envisioned.
Suppose we want to have equitably shared prosperity
and avoid the concentration of powerful technologies in the
hands of few. In that case, the nation will need to produce

22 opinion
OUR HOUSE IS ON FIRE ...
... yet, we are adding fuel to the FIre with massive fossile fuel subsidies
House on fire
We are not doing any favour by giving significant
subsidies to fossil fuels
O
ver the last four decades, it has become
increasingly clear climate change not only
is caused by humans but also constitutes an
existential threat to humanity.
Climate change is caused by greenhouse
gas emissions, which climate scientists
giv agt say must be cut in half by 2030 to not pass
the threshold of irreversible catastrophic
climate change.
By GREGERS REIMANN Metaphorically speaking, our house has caught fire,
and swift action is required to save it from burning to the
ground. In a normal scenario, firefighters would immedi-
ately be called to quickly put out the fire with large water
quantities.
In the context of climate change, however, we have been
very slow to call the firefighters. Not only is our house still
increasingly on fire – as evident by the accelerating rate
of global greenhouse gas emissions – but we have actively
been adding fuel to the fire by giving significant subsidies
to fossil fuels, a major source of greenhouse gas emissions.
In fact, the International Monetary Fund has calculated
that the annual post-tax fossil fuel subsidies in 2017 cor-
responded to a staggering 6.5 per cent of the global GDP
(or US$5.2trillion).
It is high time that the global fossil fuel subsidies are
removed and that a “polluter pays” principle is imple-
mented for greenhouse gas emissions by introducing
carbon taxation. The carbon tax should be set to a value
that matches the Social Cost of Carbon (SCC), so it becomes
commensurate with the adverse effects of greenhouse gas
emissions on human health and the environment.
A carbon tax will cause carbon-intensive products to
become comparatively more expensive than the environ-
mentally friendly alternatives, shifting the market in a
green low-carbon direction. The smart thing about carbon
taxation is that the prices across the society will be affected
proportionally to their individual carbon footprint.
As such, carbon taxation is universally applied fairly
and robustly and is not prone to special interest lobbyism.
In Southeast Asia, Singapore is the first and only nation
to implement a carbon tax. The Singapore carbon tax is
set at SG$5 (US$3.7) per ton of greenhouse gas emissions,
expressed as a ton of carbon dioxide equivalents (tCO2e).
Singapore plans to increase the rate by 2023, and right-
fully so, most yardsticks’ current carbon tax is meagre. The
World Bank, for example, recommends US$40/tCO2e as
the minimum social cost of carbon.
@green | January-February, 2021
Source: Cartoon by Bjorn Bull Hansen
C
H
E
A PETROL
P
Likewise, the Paris Agreement recommends using a
range of US$40-80/tCO2e to achieve climate targets. A
much higher cost of US$417/tCO2e was determined in
a recent large global study published in Nature Climate
Change (2018).
In reality, however, only a limited number of countries
have implemented a carbon tax of the recommended
US$40/tCO2e or higher. Even in the European Union,
which is seen as a global leader in legislating for transition-
ing into decarbonised society, the carbon market price is
currently only at US$33/tCO2e.
Only a handful of countries have implemented higher
national carbon taxes, such as France (US$50/tCO2e),
Switzerland (US$96/tCO2e) and Sweden (US$127/tCO2e).
A commonly heard argument against implementing a
carbon tax - or environmental taxation in general - will
hurt low-income families by reducing their disposable
income. The opposite is true if carbon taxation is imple-
mented as a simple “Fee and Dividend” scheme.
Championed by the Citizens’ Climate Lobby, the
monthly national carbon tax revenue is paid out as a
monthly dividend in equal proportions to all citizens in
this scheme.
Low-income families will typically experience a net
economic gain, as the monthly dividend payout likely will
be significantly higher than their monthly carbon taxes
expenses due to the lower consumption and spending
power of low-income families.
In other words, if applied along the lines of the Fee
and Dividend scheme, carbon taxation can gain instant
approval and popularity among the low-income segment
of the population and become a political win.
Another commonly heard argument is that carbon
taxation hurts the competitiveness of businesses. Differ-
ent taxation policies can help alleviate this problem, such
as a Carbon Border Tax Adjustment (CBTA) imposed on
imported goods from countries without carbon taxation.
Moreover, energy-intense domestic industries can be
given time to adjust by granting them a tax credit that is
gradually phased out. It is also worth mentioning that push
for carbon taxation sometimes come from the industry itself.
Case in point, the Confederation of Danish Industry, rep-
resenting 18,000 companies, has for the past two decades
regularly pleaded with the Danish government to impose
more strict domestic energy efficiency requirements. Why?
Because looking ahead, they know the impending Climate
Crisis will spur global demand for energy-efficient and
climate-friendly solutions.
Strict domestic environmental standards will force
businesses around the country to develop climate-friendly
products while staying relevant and competitive on the
global market. It’s an excellent strategic business decision
to pursue low-carbon solutions.
Last year, the Chief Economist of the World Bank, Joseph
Stiglitz, stated that the climate crisis is our “third world war
and needs a bold response because we cannot afford not
to act, as our civilisation is at stake”. Let’s make the global
implementation of a carbon tax one of those actions. — @
green
January-February, 2021 | @green
Environment-friendly mobility
Use of fossil fuel for electric power generation and transport are
the ‘worst offenders’ for carbon emissions
Lal‘s
Chat
T
By G. LALCHAND
he Covid-19 pandemic impacted so
many aspects of life that it seems to be
creating a whole new world on this
planet.
Although its impact on the global
society and economy has been mainly
negative, it has also encouraged posi-
tive results. Air and water pollution is
reduced mostly by reducing anthropo-
genic activities, which have been heavily dependent
on the combustion of fossil fuels that spew global
warming (or carbon) emissions into the atmosphere.
Use of fossil fuel for electric power generation
and transport are the “worst offenders” for these
emissions. Even before the pandemic, the global
community had reduced fossil fuels, particularly coal
and oil, for power generation, transport and other
industrial services.
Thus, most initiatives to reduce carbon emissions
have been directed at decommissioning the older
coal-fired power plants and stopping the continued
development of coal-fired power plants, including
the so-called clean(er) coal ultra-supercritical power
plants.
Malaysia too (at least TNB) has committed to not
developing more coal-fired power plants beyond
2030.
The next most apparent “culprit” of carbon emis-
sions is the transport sector. This sector is based on
internal combustion engine (ICE) power systems
using liquid fossil fuels such as petrol and diesel
(including bio-fuels) and moving towards NG (natu-
ral gas), CNG (compressed natural gas), biogas, and
hydrogen for use as gas or with fuel cells to generate
electricity.
Rail transport has long been mostly electrified
globally as being the most convenient and cost-
effective form of motive power for such systems. Even
urban road transport was electrified in the past with
electric trams and buses. However, these forms of
urban transport lost their advantage over time for
various reasons.
However, the introduction of hybrid electric
vehicles (HEVs) from the 1990s, BEVs (battery
electric vehicles) and hydrogen fuel cell vehicles
(FCVs) promises the most drastic paradigm shift for
motorised road transport to reduce carbon emissions
from this sector.
This is helped further by the proliferation of EEVs
(energy-efficient vehicles) that promises reduced
emissions through the design of higher efficiency
ICE engines.  HEVs, especially those without “plug-in-charging”,
Electric motor power systems and drive trains are
indisputably more efficient than the ICE and hybrid
vehicles as they have fewer moving parts that reduce
friction losses and not have to dissipate unused ther-
mal energy that fuel combustion produces.
Moreover, they also need much less supplemen-
tary oil use such as for lubrication and cooling.  position of having predominantly fossil-fuelled
Consequently, the world has seen the explosive
promotion of “battery electric vehicles (BEVs)” this
century, especially with Elon Musk’s iconic Tesla
brand.
Most mainstream and new entrants in the automo-
tive sector, anticipating an EV boom, have jumped on
the bandwagon to produce BEVs.  in operation and under construction or planned
Notwithstanding the high-profile promotion of EVs
and the double-digit growth rates of their produc-
tion volume and sales, they still form a small portion
(estimated to be only about one per cent) of the global
Comparing Electric Emissions to Petrol Cars
Electric car's emissions can vary from similar to average petrol cars
to less than half those of the best petrol hybrids.
We show this by accounting for the difference in vehicle manufacturing
emissions and then calculating the equivalent petrol vehicle emssions
in terms fuel economy, MPGUS. Presented in this way the results
more intuitive, allowing us to compare electric car emissions with
conventional vehicles in a more familiar metric.
Figure 1
Figure 2
Malaysia is in the complex
power generation (around 96 per cent in 2019 as
shown in the Suruhanjaya Tenaga Outlook 2019
extract) in the peninsula where the promotion
of EVs is most prevalent, while Sarawak has the
largest share of non-fossil fuel power generation
due to its vast large hydroelectric power plants
for construction.
Figure 3
opinion 23
road vehicle population.
Nevertheless, EVs and HFCVs are seen as an essen-
tial tool to help reduce global warming emissions
from the road transport sector.
An important point to note is the definition of “EVs”,
as some reports include HEVs (whether the mild
hybrids or PHEVs) which supplement their energy
use with battery recharging using the grid-supplied
electricity from the power plants that feed the grid. So,
are such “EVs” really low-carbon emission vehicles? 
The electricity used to recharge the batteries for
EVs & PHEVs in most countries is predominantly
from fossil fuels. However, some countries like Costa
Rica, Iceland, and Norway produce virtually 100 per
cent of their electricity from RE sources.  
While nuclear-powered electricity generation
qualifies as low carbon emission, it is not universally
accepted due to its perceived radioactive related
hazards. 
The charts (Fig 1) show a comparison of the
carbon emissions from conventional ICE vehicles
and EVs, under different power generation systems
and the ICE efficiency grades.
So, are EVs really “clean”? Let us look at some
issues of BEVs, as indicated in the reports below (Fig
2).
A healthy urban environment
We have to consider the different power generating
systems’ primary energy mix in comparing the com-
parative emissions from ICE, HEV, BEV and HFCV
powered road transport vehicles to assess their con-
tribution to carbon emission reduction endeavours.
The issue of hydrogen fuel cell vehicles is still in its
infancy but could be significant in the future. 
It was ironic that a former Chief Secretary of
KeTTHA (Ministry of Energy, Green Technology and
Water) included this slide (Fig 3) in his presentation
on Planning for Sustainable Energy to UTM on May
17, 2017.
Sarawak exploits hydrogen (using low-cost
hydroelectric energy to generate hydrogen through
electrolysis) for its experimental hydrogen fuel cell
buses and a planned LRT system. 
Notwithstanding the content above, which appears
to be against over-hyped promotion of EVs in Malay-
sia, electric mobility for public transport such as
MRT, LRT, Monorail & electric buses (BEV) for intra
urban public transport (as BRT, bus rapid transit)
deserve strong support due to their zero tailpipe
emissions, even if they may be less cost-effective
than fossil-fuelled buses such as diesel (including
bio-diesel) and CNG.
Polluting emission reduction in urban areas
is an important civil desire for a healthy urban
environment. 
Malaysians must surely be aware of the clean air,
especially in the Klang Valley during the long holidays
(pre-Covid 19), when a large portion of the Klang
Valley residents “balik kampong”. That eliminated
the heavy vehicle emissions during the week-long
holidays. 
Realistically, extensive use of EVs and PHEVs is not
the only cost-effective avenue for Malaysia, and the
global community to reduce carbon emissions from
the transport infrastructure.
and EEVs may be the most cost-effective options to
reduce carbon emissions from the motorised road
transport sector. — @green

24 opinion
Hype v Substance
Sustainability: an early career working definition
O
perationally, the idea of “sustainability”
is hard to define. It doesn’t help that it’s a bit
CAPTAIN of a moving target, from the early environ-
PLANET
mental movement’s resource conservation
goals to the 1987 Brundtland Report defini-
tion for economic development to today’s
consumer-facing buzzword.
By Kavickumar So, what does it mean, then, to be a “sus-
Muruganathan tainable professional”? Herein lies the issue:
the breadth and depth of sustainability issues mean that
hiring a sustainability professional has to be contextualised
in the industry’s nature. But gaining the experience neces-
sary can be inaccessible to many seeking to enter it.
Now, the sustainability wave has gained significant
momentum. It is an in-thing. Services for the field have
expanded — the number of sustainability events and forums
have quadrupled over the last couple of years.
Simultaneously, the size of the profession itself has
grown, and it continues attracting even more talent.
Millennials are deeply passionate about sustainability
issues, and even mid-career professionals are keen to make
a transition and jump onto the sustainability bandwagon.
Graduates, soon-to-be graduates and midcareer profes-
sionals have taken to various ways in gaining a foothold in
the sustainability space. Some have sought internship roles
in companies, while others have begun setting up their
own non-profit groups and startups offering sustainability
solutions.
That group makes it a point to attend sustainability
events and conferences to network with sustainability
professionals and seek job opportunities.
However, the amount of interest in the field certainly
outweighs the number of jobs out there. Over the years,
we have seen more sustainability roles opening up, but not
at the rate of the demand of many who are keen to enter
the industry.
These include in-house, advisory (consultancy) and
business development roles. The major issue? Junior
sustainability roles are few and far between.
However, the amount of interest in the field certainly
outweighs the number of jobs out there. Over the years,
we have seen more sustainability roles opening up, but
not at the rate of the demand of many who are keen to
enter the industry. ”
@green | January-February, 2021
Most early roles in the field require at least 2-3 years
of working experience. So where does that leave fresh
graduates who have just come out school with their first
university degree?
Having been in the industry for about eight years, I
remain steadfast and take it as my responsibility in set-
ting aside some time to mentor soon-to-be graduates. The
million-dollar question on every graduate’s lips remains:
what does it take to get into the sustainability space?
Possess first degrees
in environmental science
Many I had spoken with possess first degrees in environ-
mental science, environmental engineering and ecological
studies, to name a few. There were some whose subject
matter expertise lies in finance and business.
These are all implicitly relevant skills sets required in
the field, and they should not disadvantage an individual
seeking a job in the sustainability field. But this usually
tends to be when hiring takes place in a siloed manner,
and general human resources (HR) lack knowledge of
sustainability.
In Southeast Asia, at least, I have not come across a
basic honours degree programme specific to sustainability.
This leaves an individual who is deeply passionate about
sustainability in a quandary.
On the flip side, I am always left wondering if sustain-
ability can ever be comprehensively taught through a single
degree programme. Based on my professional career thus
far, I don’t think there can ever be an all-encompassing
program to teach sustainability.
Sustainability needs sensitisation; sustainability
requires you to be on the ground. This, I will come to later.
A significant part of the problem is that many recruiters
and talent acquisition specialists typically go for commu-
nications or PR professionals to fill sustainability roles.
Sustainability is not about creating hype. It is about
substance; making measurable impact. This is especially
important in organisations where sustainability roles have
not existed previously.
Hire the wrong candidate, and your sustainability pro-
grammes and initiatives might derail and be perceived
as greenwash campaigns in the eyes of the public and
non-governmental organisations (NGOs).
Sustainability requires intrinsic passion and an inner
drive to create change. It requires humility and a sharp
listening ear, willing to accept diverse views and even
completely oppose your inner values.
Sustainability is not about pushing your weight. It is
about being as inclusive as possible. Sustainability is not
about sitting in offices, having copious amounts of meet-
ings, developing policies and programs and cascading
them downwards.
It’s about having boots on the ground, engaging and
socialising with communities that face socio-economic
issues. Sustainability requires a profound understanding
of sensitivities. (It also requires acknowledging that you
would not necessarily be paid on par with your peers in
the IT and financial industries.)
Enter the industry
For those wanting to enter the industry, I would like to offer
my humble advice. There is no harm starting off on a low
base. Join an NGO or even be part of a startup. Learn the
ropes, read diversely and walk the ground to understand
the real issues.
Adopt long-term views on issues. As with any job, do
your homework on the company and pick your boss before
choosing your career. The last thing you would want is to
have is someone impeding your progression and shutting
down your ideas.
On a system-wide level, we must start recognising a job
in an NGO sector and one from the corporate sector to be
of equal standing. Both jobs can and are equally rewarding.
The learnings from both sectors are complementary and
mutually reinforcing.
While pay scales may differ, the learnings and intrinsic
job satisfaction from working with an NGO should be
valued and treasured as much. Human resource manag-
ers must also cast their nets wider to consider candidates
from the NGO sector for potential hires. At the same time,
university programmes must also prepare students to
implement sustainability in their work regardless of if it’s
specifically environmental.
As a sustainable professional, I want my peers in
sustainable and non-sustainable jobs to be a part of the
systems change. To do that, we need to change a few things
first. – @green
Kavickumar Muruganathan is a sustainability professional.
 January-
february, 2021

Save our elephants

Rampant illegal logging giving rise
to human-beast conflicts p28

Menraq to the fore

Orang Asli forest patrol makes giant
leaps in saving Malayan Tiger p29

Cleaning our rivers

The Ocean Cleanup prepares for series production
of interceptor in Malaysia p28-29

Just stop it!

PEKA President Puan Sri Shariffa Sabrina Syed Akil
says they are against REE mining in Kedah as they are still
mitigating the damage caused by similar activities
in Perak not too long ago p26-27

Neodymium is a rare earth element. The crystals

are precipitated from a solution on a microscope
slide and photographed in polarised light.
26 cover story @Forest | January-February, 2021

Don’t even
think about it
Kedah REE mining venture raises environmental
and health concerns

P
By Khirtini K Kumaran

ertubuhan Pelindung
Khazanah Alam Malaysia
(PEKA) did not pull any
punches in voicing out
against Kedah’s proposed
rare earth element (REE)
mining.
PEKA president Puan Sri
Shariffa Sabrina Syed Akil PEKA president Puan
said they were against such activities as Sri Shariffa Sabrina Syed
they were still mitigating the damage Akil.
caused by REE mining in Perak decades
ago.
“The new and latest method being
campaigned and lauded by the Kedah
MB has not been tested to prove it was
eco-friendly,” said Shariffa.
“We should not allow the mining
to be approved. The economic returns A truck at a rock quarry in Malaysia.
versus environmental destruction, water
pollution, radioactive contamination and
loss of biodiversity will not be worth it.”
Shariffa was perplexed why Kedah
was in such hurry when the big and
developed nations were being very Energy and Natural
careful about REE extraction in their Resources Minister
country. Datuk Dr Shamsul Anuar
Concerns over REE mining and its Nasarah.
impact on the environment and health
surfaced when Kedah Menteri Besar
Muhammad Sanusi Md Nor announced
the State had appointed a company to
conduct mineral exploration.
The State had reached an agreement
with a Kuala Lumpur-based joint venture
company to mine for REE said to be
found in abundance in parts of the State.
Sanusi claimed the REE reserves were
worth RM62 billion.
“The REE was not radioactive and was
found in Sik, Ulu Muda and Baling, and
I hear in some parts of Lenggong, Perak Kedah MB Muhammad
too. It has been common knowledge to Sanusi Nor.
geologists for the past 20 years,” he said
on Dec 2, 2020. economic source for the country,” said as the Mineral Development Act
Following the announcement, Shamsul. 1994, Geological Survey Act 1974,
Penang urged the federal government to “The SOPs will include the entire Environmental Quality Act 1974,
prevent REE mining in Kedah to protect process from mining to the handling Industrial Co-ordination Act 1975 and
the water supply of Perlis, Kedah and of wastes, shutting of mining sites and mineral enactment in respective states.
Penang. manufacturing processes.” Based on a survey conducted by the
Several NGOs and environmental He added the SOPs were also Mineral and Geoscience Department
groups were also steadfastly against the supported by relevant laws such under the 11th Malaysia Plan, the
State’s venture.
Energy and Natural Resources
Minister Datuk Dr Shamsul Anuar
Nasarah responded that Putrajaya would
not allow REE without proper testing PEKA: Pertubuhan Pelindung Khazanah Alam
(PEKA) Malaysia is an NGO established in

Advocating
and technical approvals, and more so, if 2010 by environmentalist Puan Sri Shariffa
it affected forest reserves. Sabrina Syed Akil, who also serves as its
Shamsul’s ministry is responsible president.

for a greener
for ensuring mining activities and The acronym, PEKA, means sensitive in the
management of natural resources were Malay language and reflects PEKA members’
conducted sustainably. attitude and commitment toward its cause
Shamsul shared on Dec 9 that his
ministry was drafting standard operating
procedures (SOPs) on mining the
Malaysia of preserving, conserving and protecting
the natural environment and all its various
biodiversity.
non-radioactive rare earth elements PEKA Malaysia was formed with the
(NR-REE) to ensure sustainable mining. vision to save the oldest rainforest with all its
“Many efforts have been made to biodiversity from extinction, as part of the total
realise the potential of natural resources, living environment for people, and its mission
including NR-REE for it to be a new is to be a force in ensuring the preservation,
January-February, 2021 | @Forest
Neodymium is a rare earth element. The
crystals are precipitated from a solution
on a microscope slide and photographed in
polarised light.
country’s mineral resources were
estimated to be worth RM4.11 trillion,
which includes metals, non-metals and
energy minerals.
From the estimate, Shamsul said
NR-REE resources in Malaysia
amounted to 15.188 million metric tons
with a value of around RM741 billion,
and most are found in Kedah, Perak,
Terengganu, Kelantan, Pahang, Johor.
protection and conservation of the natural
environment.
“Protection and preservation of forest
is PEKA’s primary focus as we believe that
without forest, there will be no other life
whether directly or indirectly in the scope of
tropical countries such as Malaysia,” Shariffa
shared with @Forest.
With regards to the Malaysian public’s level
of awareness when it comes to environmental
issues and conservation efforts, she said:
“It is increasing as the public in Malaysia is
experiencing long-term man-caused disasters
directly from logging, mining and other
activities.”
However, she noted the process of
The 1982 Bukit
Merah radioactive
pollution incident
in Bukit Merah of Kinta
District in Central Perak
is one of Malaysia’s
most controversial
environmental issues,
involving Asia Rare Earth
Sdn Bhd (ARE), a rare-
earth extracting company.”
Past REE related incidents in Malaysia
fuels environmental concerns
While the minerals themselves are
generally harmless and not radioactive,
the actual processing of the elements can
be rather dangerous.
Given the ecological destructions and
radiation pollution the mining activity
poses, along with Malaysia’s experience
with REE mining incidents, there are
growing environmental and health
concerns about the REE venture in
Kedah.
The 1982 Bukit Merah radioactive
pollution incident in Bukit
Merah of Kinta District in Central Perak
is one of Malaysia’s most controversial
environmental issues, involving Asia
Rare Earth Sdn Bhd (ARE), a rare-
earth extracting company.
ARE failed to safely dispose the
industrial waste containing radioactive
thorium hydroxide, exposing workers
and the neighbouring community to
ionising radiation. It resulted in several
birth defects and leukaemia cases among
the 11,000 people living in Bukit Merah
and Papan, Perak.
Bukit Merah also stands as the site of
the largest radiation cleanup yet in the
rare earth industry, and it is still ongoing.
Fast forward to 2010s, and another
REE incident surfaced involving an
Australian rare earth mining company,
Lynas Corporation Ltd. (Lynas).
The development of rare-earth
processing plant in Gebeng, Kuantan,
called the Lynas Advanced Materials
Plant (LAMP), which became one of the
largest rare earth processing plants in
the world, led to international activism
and claims of environmental and social
injustice.
A 2014 study by UKM found the
thorium radioactivity concentration
in Lynas’ water-leached purification
(WLP) stream of wastes to be close to
eight times higher than the regulatory
exemption limit. — @Forest
awareness to eco-activism is slow and the
public is also of the opinion that NGOs will be
able to solve the problems by protesting.
“Public must realise that without their
support or if they remain indifferent, NGOs will
fail.”
According to PEKA, apart from
logging, other environmental issues in
Malaysia include uncontrolled reclamation,
coal-fired power plants, micro dams, fresh/
saltwater sand mining, imports of toxic plastic,
slow change from unrecyclable plastic to
eco-friendly materials, renewable energy
transformation, sea and freshwater pollution
as well as over-fishing by local and foreign
vessels.
cover story 27
Datuk Ir Jaseni Maidinsa.
REE mining will
endanger water supply
The Kedah Menteri Besar’s approval of largescale mining
permits in Ulu Muda will jeopardise water supply in three
northern Malaysian States and endanger water supply for a
combined population of 4.2 million people.
According to a recent Astro Awani report, Kedah
Menteri Besar Muhammad Sanusi Md. Nor said his State
administration had approved a permit for a company to
explore large-scale mining of minerals referred to as “rare
earth elements” (REE) in Ulu Muda, Sik and Baling.
The Ministry of Environment and Water (KASA), the
Ministry of Natural Resources and Energy (NRE) and the
National Security Council (MKN) must work together to
stop this dangerous venture immediately.
Sanusi has conveniently forgotten that Ulu Muda is the
largest and most important water catchment area in the
Northern Corridor Economic Region (NCER).
In a statement, Datuk Ir Jaseni Maidinsa, CEO of PBAPP
and PBA Holdings Bhd, said large-scale mining operations
in the 163,000-hectare Greater Ulu Muda Forest Complex
would involve large-scale land clearing wherever the
minerals are found.
“The fallout from cutting down trees, flattening hills,
establishing huge quarries and digging into the earth will
be monumental destruction in the rainforest environment.
Mining will also adversely affect Sungai Muda, a strategic
raw water resource,” said Jaseni.
Permanent damage and high-risk
There is no way to conduct large-scale mining enterprises
in Ulu Muda without decimating rainforests that catch the
rainwater which flows into Sungai Muda as raw water. In
this sense, Ulu Muda is the first link in the NCER water
supply value-chain that meets the water needs of the people
and businesses in Perlis, Kedah and Penang.
About 70 per cent of Perlis’ raw water and 96 per cent of
Kedah’s raw water originate from Ulu Muda. More than 80
per cent of the raw water that PBAPP abstracts from Sungai
Muda, at the Lahar Tiang Intake in Penang, daily originates
from Ulu Muda.
Ulu Muda cannot continue to function as a primary
natural water catchment area for 3 NCER States if its
rainforests are cut down, its hills are flattened and its
landscape is scarred by mining operations. The potential
damage is likely to be permanent.
As such, mining REE in Ulu Muda will inevitably
put water supply services for three States in peril. It will
endanger water supply, an essential public service for 4.2
million people. Thousands of businesses seeking to survive
and revive their operations during this Covid-19 global
pandemic will be burdened with unnecessary risks.
In the case of large-scale mining, the threat is not limited
to a shortage of raw water from Ulu Muda. The quality of
the raw water from this river will also be compromised.
Large-scale mining operations will generate large
amounts of toxic waste, debris and polluted earth, leading
to the following:
• Disastrous environmental and health impact
• Difficult to dispose by-products
• Pollute and contaminate surface water systems in the
Muda River Basin
Jaseni stressed KASA, NRE and MKN must ensure that
Kedah does not jeopardise the water supply security of the
NCER States of Perlis, Kedah and Penang, which contribute
about RM147.8 billion in 2019 and the livelihood of 4.2
million people.
28 CONSERVATION
Save our elephants
Rampant illegal logging giving rise to human-beast conflicts
T
he rampant illegal
logging activities
in Kelantan and
poaching have been
identified as among
the reasons elephants
leave their habitat.
State Wildlife
director Ady Ermanty
Haniff Mohamed Hanif said other
factors included the opening of
smallholdings, the construction
of dams and conflicts such as
poisoning.
The jungles of Kelantan hold
an estimated 220 elephants, and they are a
threatened species due to all these factors,
and their population is getting smaller.
He said the elephant population in
Kelantan is divided into herds according
to the districts, namely Jeli, Tanah Merah,
Kuala Krai, Gua Musang and Machang.
He said the pressure of a dwindling
habitat has given rise to human-elephant
conflict in the villages and plantations.
ENVIRONMENT
Cleaning our rivers
The Ocean Cleanup prepares for series production
of interceptor in Malaysia
T
he Ocean Cleanup, the
Dutch non-profit developing
advanced technologies to
rid the oceans of plastic,
and Konecranes recently
announced that MHE-
Demag is the chosen partner
to design, manufacture, and
service The Ocean Cleanup’s
Interceptor to extract plastic from rivers
before entering the ocean.
This is an important step as the non-
Ady Ermanty said the
department had taken several
measures such as setting up an
electric fencing system to solve
the problem.
“The electric fencing system
was introduced in 2009 to
confine the elephants to their
habitat and reduce conflict with
humans.
“The 31.8 km fencing was
set up in three conflict areas,
namely Kampung Sungai Rual
and Kampung Batu Melintang
in Jeli as well as Pos Pasik in Gua
Musang at a cost of RM1.8 million.
“The fence will prevent the animals
from encroaching into smallholdings and
villages,” he added.
Ady Ermanty Haniff also said that
Perhilitan caught 16 elephants in Kelantan
this year and relocated them to Taman
Negara and State forest reserves straddling
the borders of Kelantan, Terengganu and
Pahang.
Interceptor on Klang River,
Karl Tilkorn, Senior Vice profit organisation prepares to tackle the
President, Industrial world’s 1000 most polluting rivers.
Cranes and Products, In Malaysia, five per cent of river
Asia Pacific. basins are considered severely polluted
@Forest | January-February, 2021
WWF-Malaysia
relaunches Sabah
landscapes programme
World Wide Fund for Nature-Malaysia (WWF-Malaysia)
relaunched its conservation programme in Sabah, which focuses
on a holistic approach towards environmental protection and
conservation, through the landscapes approach.
The newly-minted Sabah Landscapes Programme (SLP)
combines conservation and sustainable development by integrating
forest protection, wildlife and rivers, with Roundtable on Sustainable
Palm Oil (RSPO) certified oil palm production and restoration of
ecological corridors and riparian reserves.
The SLP aims to support Sabah’s existing policies to protect 30
per cent of its rainforest by 2025 and maintain 50 per cent forest
covers, and attain 100 per cent RSPO certification by 2025 through
the jurisdictional approach.
The programme relaunch was kick-started by a virtual talk on
Dec 3, 2020, via WWF-Malaysia’s Facebook Live, “Nature Talks:
What is a Landscape? Introducing Sabah Landscapes Programme”
where the speakers shared the conservation approach and what it
meant for forest and wildlife protection in Sabah.
The speakers were Dr Robecca Jumin (Head of Conservation
Sabah, WWF-Malaysia), Dr Glyn Davies (Senior Advisor, WWF-
Malaysia) and Dr Faisal Mohd Noor (Sabah Landscapes Programme
Leader, WWF-Malaysia).
“I believe this holistic approach will help us further the
conservation work that we have already been doing for the past
three decades,” said Dr Robecca.
Moderated by Sheelasheena Damian (Policy Analyst, WWF-
Malaysia), the 60-minutes live session also coincided with the launch
of SLP’s webpage: www.wwf.org.my/sabahlandscapes.
SLP is an integration of the former Living Landscapes
Programme and Sabah Terrestrial Conservation Programme.
Through the landscapes approach, SLP builds on three pillars:
• Protect (protection of forests, wildlife and watershed),
• Produce (production of sustainable palm oil and timber), and
• Restore (restoration of degraded habitats and ecological
corridors).
The SLP will focus on three priority landscapes: Tawau, Tabin and
Lower Sugut. Also, SLP will subsequently enhance conservation
efforts in Kalabakan, Central Forest and Ulu Padas-Nabawan.
“It is SLP’s vision that by 2030, Sabah’s biodiversity, ecosystem
services and agricultural systems are valued, protected and
responsibly managed, are climate-resilient and bring benefits to both
people and nature,” said Faisal.
While engagement with various stakeholders including
government, private sector, businesses and communities is vital
to the landscapes approach, Faisal stressed communities living
within the targetted landscapes are one of WWF’s most prominent
stakeholders.
“They (communities) are often marginalised by conventional
conservation approaches. On the other hand, a landscape
approach has considerable potential to meet social and
environmental objectives from the ground up while also contributing
to state and national environmental commitments,” he said.
WWF will also seek to engage with communities in the identified
landscapes to share its proposed intervention measures there and
receive input and feedback from those on the ground. They can be
channelled through contactslp@wwf.org.my. — @Forest
and 42 per cent polluted – leaving only
53 per cent classified as ‘clean’.
The Ocean Cleanup introduced the
Interceptor in 2019 and piloted one of
January-February, 2021 | @Forest
Menraq to the fore
Orang Asli forest patrol makes giant leaps in saving Malayan Tiger
M
By PEARL LEE
enraq, a Jahai Orang
Asli forest patrol unit,
roams Malaysian
rainforests to keep
poachers away and
detect snares in a bid
to protect wildlife,
especially the Malayan
Tiger.
The wildlife conservation team focuses
on the Royal Belum State Park in Perak,
one of the most diversified wildlife
hotspots globally. It is the last bastion of
an untouched, pristine forest.
Menraq, or ‘our people’ in the Jahai
language, is making big leaps to ensure
the survival of the tiger species in Royal
Belum while uplifting their community
through wages earned from their hard
work.
A brainchild of the Perak State Parks
Corporation and non-governmental
organisation Rimau, Menraq was set up
in 2019 to save the Malayan Tiger.
Speaking to Twentytwo13, Perak State
Parks Corporation director Shah Redza
Hussein said there were 60 to 70 tigers in
the Belum-Temenggor forest area seven
years ago, but there are only 20 now.
The figures were obtained in a study
by the World Wildlife Foundation (WWF)
three years ago.
“Hunters from Vietnam, Cambodia
and Laos come here using visitor visas
the first devices in Malaysia last year in
the Klang River to resuscitate the State’s
polluted rivers and to clear them of
garbage.
Deploying Interceptors on a large
scale is necessary to rapidly address
the urgent problem of ocean plastic
pollution. The Ocean Cleanup is
partnering with MHE-Demag because of
their expertise and worldwide footprint.
Laying the groundwork for global
scaleup, Interceptors 005 and 006
are currently being manufactured
simultaneously at MHE-Demag’s
facility in Klang and are expected to be
completed in May 2021.
Moving forward, MHE-Demag will
handle Interceptor manufacturing,
installation, and maintenance; local
partners will oversee operations, and
The Ocean Cleanup will continue to
act as the technology and best practices
and work as plantation and construction
workers. But they are brought in by
syndicates to poach for wildlife,” said
Shah Redza.
“These poachers will set up big wire
nests aimed at tigers. But other animals
like bears, panthers or porcupines also
become victims. These animals bring in
money, but the poachers hit the jackpot
when they get a tiger.”
Shah Redza’s priority upon being
appointed Perak State Parks Director in
2018 was to ensure poaching was stopped
in Royal Belum.
Although there were forest rangers,
more had to be done to ensure the
Malayan Tiger’s survival.
“Having lived in the forest all their
lives, they (the Jahai) know the forest
better than anyone else.
“The population of 20 will be halved
within 24 months. It will then become
unviable for the Malayan Tiger to
reproduce in such a large landscape
(117,500 ha) as their main food source,
the samba deer, is also being poached.”
The State park worked with WWF and
believed the Orang Asli should play a
more prominent role in the conservation
effort.
The challenge, however, was to ensure
the natives understood conservation from
a modern perspective.
Menraq was set up in 2019 with
five members with initial funding of
RM50,000 from Rimau.
provider as well as lead business
development for upcoming Interceptor
projects.
Founder and CEO of The Ocean
Cleanup, Boyan Slat, remarked: “At the
end of a very challenging year, I am
happy to see series production begin for
the Interceptor.
“This is a necessary step for us
to tackle the global flow of plastic
pollution to our oceans at scale. I believe
Konecranes is well-suited for the job
and I look forward to seeing them build
many more Interceptors in the coming
years.”
The Ocean Cleanup’s Interceptor
was unveiled in late 2019. Three are
deployed in Klang, Jakarta and Santo
Domingo (Dominican Republic).
A fourth Interceptor, in Vietnam, is
expected to be launched early in 2021. —
@Forest
CONSERVATION 29
“They had to show commitment during
training, and they were also screened on
their technical capabilities … if they could
pick up essential reading, read maps,
follow instructions and understand GPS
(Global Positioning System).
“Those selected will go on to patrol
the forest for 10 to 15 days in a month.
They get RM85 a day, and on other days
they can collect bamboo or catch fish to
(Centre) Shah Redza supplement their livelihood.”
(far left) with Menraq Through the scheme, a contribution of
members. RM10 is given to the village community
chest daily for every Menraq member
(Top Right) Menraq who goes on patrol.
members are taught to “This year, we plan to expand the
read maps. Menraq team to 21. This means their
village can earn a minimum of RM2,000
a month.
“The buy-in from the village elders is
very high. Their youth can earn a living,
and there is also income for their village,”
he said.
Shah Redza hailed the programme as a
success.
Poaching in Royal Belum has been
reduced by 90 per cent through joint
efforts by Menraq, Royal Belum forest
rangers and WWF.
“Four years ago, there were hundreds
of snares and traps in Royal Belum. The
team has helped destroy these snares to a
point it has frustrated the poachers,” Shah
Redza said.
“We are forcing them (the poachers)
to reduce their activities. They may have
even given up going into Royal Belum.”
However, they cannot recruit beyond
21 members as funding is paramount to
the programme’s success.
“Rimau sources the funds. We cannot
do so on our own as we are a government
agency,” he said.
Rimau raises money through its
initiatives, including donations from
entities and individuals. — @Forest
Interceptors 005 and 006 being manufactured in Klang.
30 COLUMN
Making Malaysian
agriculture truly
sustainable
Agriculture needs to be made more appealing
M
alaysia’s most tremendous success
in agriculture has been developing
its oil palm value chain, arguably the
most advanced in the world, built over
six decades on the back of a century’s
Pale Blue
experience with management of the
natural rubber industry.
Dot... Although it initially expanded on
land planted with rubber, it also,
unfortunately, developed at the expense of the Malaysian
By KHOO HOCK AUN rainforest and resultant loss of biodiversity.
Oil palm also occupies, as a mono-crop, 75 per cent
of all land used for agriculture. It has edged out other
potential crops, in terms of human resource, and
monopolised agronomic and management talent for at
least two generations. That has left little expertise for
other crops.
While oil palm is a conventional input-intensive
managed crop, compliance with sustainability standards
has mitigated its negative environmental and social
impacts. The opportunity in Malaysian oil palm is now
to advance sustainability credentials as its compelling
strategic competitive advantage.
This would mean reducing its heavy footprint in
The government was Malaysia through high technology applications such
as using drones in upstream plantation agronomy and
expected to table integrated downstream processing: enabling efficient
the 12th Malaysia resource use through precision technologies, optimising
yields through mechanised harvesting methods,
Plan 2021-2025 encouraging total waste and renewable energy utilisation,
in March 2021, exhaustive exploitation of by-products, elimination of
emissions and manifesting an entirely green value chain.
focusing on high But in terms of Malaysian agriculture as a whole,
potential industries it also means the golden crop will need to give way to
diversification with other crops, in need of land and
emphasising the management talent, waiting in the wings for a place under
green agenda. the Malaysian sun.
The government was expected to table the 12th
Undoubtedly, a Malaysia Plan 2021-2025 in March 2021, focusing on
significant focus will high potential industries emphasising the green agenda.
Undoubtedly, a significant focus will be on upgrading the
be on upgrading the agriculture sector through smart and sustainable farming.
agriculture sector Modernising Malaysian agriculture requires the
adoption of new technologies collectively known as
through smart and “Agtech” which can comprise biotechnology, precision
agriculture incorporating remote sensing, drones,
sustainable farming.” robotics, intelligent sensor-based farming, advanced
agricultural engineering and zero-waste processing.
Furthermore, making Malaysian agriculture truly
sustainable requires adopting holistic regenerative
approaches that balance environmental health with
optimal yields. This requires a multidisciplinary approach
which has not yet been brought to bear on the declared
strategies.
Between the government departments, agencies, and
@Forest | January-February, 2021
government-linked companies (GLCs) in the sector,
each mired with their past problems and legacy issues of
failed projects, there is no real champion of high tech or
sustainable agriculture drive the industry forward.
The corporate sector has been decidedly focused
mainly on the commodity crops, especially in rubber, oil
palm and some fruit crops adopting good agricultural
practices which adhere to sustainability standards
catering to market expectations.
Agriculture needs to be made more appealing
Among smallholder farms, usually family-owned
and without depth in management and technology
improvement, even in owner-operated farms, it is
challenging to find well-run ones. Agriculture is hard
work and requires a hands-on approach.
On the other hand, urban dwellers yearn to find patches
of land to do their weekend farming but find a lack of
access to land and resources to do so. There is great
interest in being gentlemen farmers, especially in their
retirement years. Of greater interest is growing organic,
naturally farmed or chemical-free produce, having
their own supply, an additional income stream or just a
healthier lifestyle.
However, organising for modern agriculture faces the
enormous challenge of finding the right people motivated
to initiate, lead and manage high tech agriculture projects
in Malaysia. Invariably the issue of labour will always
crop up. Can high tech modern farms reduce the reliance
on labour? Maybe.
But high tech farms require trained skilled labour, and
there is an even more significant shortage of qualified
personnel.
In North Asia, advances in utilising fertilised farming,
application drones, and vertical farming have succeeded
only in intensive agriculture using high-value inputs for
high-value crops. It may be conceivable that states where
high land costs prevail such as in Selangor, Penang and
Johore, smaller highly intensively cultivated farms may
replace significant commodity crops such as oil palm.
A great compensator for the rural-urban drift is
modern-day communications and 5G technology. As this
facility is rolled out to rural areas, more may be persuaded
to reside there and resist urban life’s temptations,
especially given the higher costs of living. The youth
is a prime target group to make agriculture attractive
again and communications technology infused with big
data analytics, and artificial intelligence has a role to
play mostly with dashboard driven farm management
applications.
Opportunities in high-value crops and
meeting domestic demand
Every now and then certain new high-value crops are
touted for their export potential such as durians and
gaharu (oud). In durians, growers can find interested
buyers in markets abroad in both fresh/frozen and
processed form. If growers can complete the value chain,
margins are much higher, such as durian and durian-
derived products in China.
The domestic demand for fresh vegetable, fruit,
floriculture, herbal and livestock produce is ever-present,
made more critical now with concerns over food security.
Given a population of 34 million with a substantial food
import bill of USD 12 billion (approximately RM 50
billion) annually, there are significant opportunities to
grow crops to meet domestic demand in areas such as
dairy, cocoa, sugar, beef and seafood.
Agriculture produce usually builds on their domestic
market success before realising export potential. Typically
supply chains built around hypermarkets can support
contract farms for fresh produce. However, investors need
to see a solid track record of growth in a sector that may be
subject to all manner of risks.
The most critical shortcoming is the lack of a coherent
Agtech ecosystem for cultivating entrepreneurial
leadership, attracting severe investment, management
and technical capacity building in Malaysia to foster
high-tech and sustainable agriculture.
The Covid-19 pandemic downturn has spurred the
government to allocate US$85 million (RM350 million) for
subsidising micro agro-food production and to encourage
urban farming. But if the above-stated issues are not
addressed, these funds will basically be give-aways to the
community for farming projects that might not be viable
nor sustainable in the long run. — @Forest
Khoo Hock Aun believes in encouraging thought
leadership in sustainability innovation and achieving a
fundamental green ethos shift in the business community.
January-February, 2021 | @green 31

CENERGI ASPIRES TO LEAD THE REGION IN

CARBON REDUCTION AND SUSTAINABLE ENERGY

“Developing Cenergi is also actively venturing

into corporate solar power
sustainable energy” purchase agreement (SPPA)
offered to commercial and industrial
Since its inception, Cenergi has been customers through installation and
firmly holding on to its principles of operation of solar PV systems on
sustainability and carbon reduction by the rooftops of their premises.
investing and developing in Through this business model, our
sustainable energy projects. Cenergi customers will be able to generate
deploys a two-fold strategy in its effort and consume sustainable solar
to reduce carbon emission: through energy on-site at zero upfront
renewable energy and energy capital and operational risks.
efficiency. Currently, Cenergi is developing
Its renewable energy business arm rooftop solar assets of 6.3 MWp
involves in generation of sustainable installed capacity through corporate
energy through development and SPPAs with local and multinational
operation of renewable power plants, companies.
which include projects like grid-connected
biogas power plants, large scale solar
farms and corporate rooftop solar
systems, and development and operation
of biomass pellet plants for production of
sustainable fuels. On the other hand, its
energy efficiency business arm focuses on
reducing energy consumption by
implementation of energy savings
measures and upgrading of less efficient
electrical equipment at commercial and
industrial buildings. Our value proposition Cenergi is the largest grid-connected palm oil mill effluent (POME) biogas
is proven by our capability and experience developer and operator in Malaysia
in successful delivery of these sustainable By end of 2020, Cenergi will own 16 Cenergi projected to double the total installed
energy projects from conception up to the operating sustainable energy assets, capacity of its renewable energy assets in the
operation and maintenance throughout comprising renewable energy power plants next few years, in an effort to position itself as
the concession period of 20-25 years. with installed capacity of 23.7 MW, energy among major supporters towards achieving
efficiency projects with total contract value the national goal of 20% renewable energy

“ Cenergi has over RM 45 Million and biomass pellet capacity in the national energy mix.
production plant of 1 ton per hour. Majority Having already established a strong foothold
offset over a of these assets are financed through in Malaysia’s sustainable energy industry,
million of sustainable Islamic Financing. In recent Cenergi is now seeking further strategic

carbon dioxide years, Islamic Financing instruments such collaborations and opportunities to promote
as Islamic Medium Term Notes and Green and explore innovative business models and
equivalent ” Sukuk have been gaining ground in cutting-edge innovations that will drive an
financing renewable projects impactful change in the local sustainable
energy
We started our journey in 2013, and today especially for Malaysia's Feed-In Tariff and energy industry.
Cenergi is the largest grid-connected palm Large Scale Solar (LSS) programs.
oil mill effluent (POME) biogas developer To date, Cenergi has offset over a million of
Reach out to us to participate in responsible
and operator in Malaysia. All our biogas carbon dioxide equivalent, and this number
and sustainable energy projects:
plants have been developed and are being is expected to grow considering our strong
info@cenergi-sea.com
operated internally by our dedicated biogas pipeline, which consists of over 10
wwww.cenergi-sea.com
engineering, construction, project renewable energy power plant projects
management and O&M teams. currently under development and
construction. @cenergisea
32 @green | January-February, 2021