Renewable energy may generate RM70 billion of business

KUALA LUMPUR: Some RM70 billion worth of business could potentially be generated from renewable energy plants by 2020 as a result of the national renewable energy policy, said Ahmad Hadri Haris, the national project leader of the Malaysia Building Integrated Photovoltaic (MBIPV) project.

“This can generate a tax income of some RM1.75 billion to government,” he said.

He was speaking at Malakoff Corp Bhd’s Energy Expert Series held here on Monday, April 12. In addition, Ahmad Hadri said the renewable energy sector could create at least 52,000 jobs in the construction, operation and maintenance of renewable energy plants.

The MBIPV project is a national holistic policy programme by the government, supported by United Nations Development Programme (UNDP), Global Environment Facility (GEF) and the private sector, to develop a sustainable and cost-effective local market for grid-connected PV applications.

Previously, Ahmad Hadri was involved in the development of national energy efficiency policy for the government and was the chief technical adviser to UNDP on a development programme for solar PV.

The MBIPV project is under the auspices of the ministry of energy, green technology and water.

Ahmad Hadri acknowledged that the government had not been able to reach the earlier goal set under the Eighth Malaysia Plan for renewable energy to form 5% of the country’s energy mix.

According to him, the key issues affecting the increased use of renewable energy include market failure, arbitrary price setting and the absence of regulatory framework.

“However, it should be noted that for renewable energy, it is not just a policy but there is also a detailed action plan. It will also provide good opportunities to the SMEs, and meet all the requirements under the New Economic Model when it comes to job creation,” said Ahmad Hadri.

He added that a Malaysian renewable energy bill was currently being drafted by the energy, green technology and water ministry, and was expected to be tabled in parliament with the approval of the cabinet by the later part of this year.

The speaker at April 12’s event was Hans-Josef Fell, a member of the German Bundestag (parliament) who noted that the Renewable Energy Sources Act in Germany has created more than 150,000 jobs in just a few years.