Positive Outlook for Malaysia's Renewable Energy Sector
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Kuala Lumpur, Jan 3 (NationPress) Malaysia's renewable energy sector is on the brink of substantial growth, propelled by government initiatives and anticipated investments, analysts have indicated.
In a recent assessment, Philip Capital reiterated its optimistic perspective on Malaysia's renewable energy landscape, citing ongoing governmental support and potential new funding.
The research firm emphasized the forthcoming Large Scale Solar (LSS5) projects, boasting a 2GW capacity, which are projected to create 7 billion ringgit (approximately 1.56 billion US dollars) in engineering, procurement, construction, and commissioning (EPCC) opportunities.
The recent increase in rooftop solar installations is also predicted to enhance contract prospects for solar EPCC companies. Philip Capital forecasts a remarkable 63 percent growth in sector earnings by 2025, driven by the Corporate Green Power Program (CGPP) and Net Energy Metering 3.0 (NEM 3.0).
As the future unfolds, the momentum generated by national energy transition initiatives and contract allocations is expected to maintain a strong interest in the sector, as noted by the research house.
Meanwhile, Maybank Investment Bank expressed its optimism for Malaysia's renewable energy sector in its latest report, highlighting the strong earnings visibility stemming from current and future projects, according to Xinhua news agency.
It anticipates earnings recognition from the CGPP projects, expected to complete by the end of 2025, which will underpin sector growth. The anticipated LSS5 projects are likely to further strengthen order books and sustain robust growth beyond 2025.
Maybank also pointed out the National Energy Transition Roadmap (NETR) as a pivotal force for renewable energy advancement in 2025.
Additionally, advancements regarding Malaysia's first utility-scale Battery Energy Storage System (BESS) are on the horizon, with a planned 400MWh capacity. These initiatives underscore the sector's growth trajectory and its significance in Malaysia's energy transition.
Hong Leong Investment Bank Research has also conveyed its positivity towards Malaysia's energy transition in its recent report, buoyed by the thriving data center industry and long-term renewable energy objectives.
It underscored the NETR's ambition of achieving 70 percent renewable energy capacity by 2050, necessitating 637 billion ringgit in investments, or 24.5 billion ringgit annually starting in 2024.
Hong Leong stressed the urgent need to synchronize renewable energy development with the escalating energy requirements stemming from data centers. To accommodate the data center surge, it is estimated that 35GW to 40GW of renewable energy capacity, predominantly solar, will be essential.
