Malaysia Wants to be the Region's Green Energy Hub

 From: Innovation Norge, 2009

Malaysia is keen to become the centre for green energy in the region.

The solar power sector is earmarked by the Malaysian Industrial Development Agency (Mida), the foreign investment agency in Malaysia, as a new source of growth for the economy. To promote investment in this sector, Mida offers incentives for companies embarking on this business in Malaysia.

 

Up till June 2009, Malaysia has attracted more than RM 12 billion in investments from the solar photovoltaic industry through foreign direct investments. The following foreign players have set up their production facilities in Malaysia:

• Q-Cells AG from Germany is setting up a cell production plant in Selangor (in central-west of the peninsular) with a total capacity of 520 MWp.
• First Solar Inc., from the USA - production from its four plants in Kulim, Kedah (in north-western of the peninsular) is expected to reach 790 MW of solar module by late 2009, representing more than 70% of First Solar's worldwide capacity.
• SunPower Corp., also from the USA, is setting up its solar cell fabrication plant in Melaka, in south-western of the peninsular. The plant will be able to produce up to 1.000 MW of solar power modules when completed in 2010.

Green Initiatives are Catching Up PoliticallyMalaysia's energy demand may reach the equivalent of 74 million tonnes of oil a year by 2020, while electricity usage growth could be as high as 6,1% annually.
Ensuring the sustainability of energy supply is important, as underined in the 9th Malaysia Plan, a 5-year development plan that will end in 2010 (the 10th Malaysia Plan will take effect in 2011). From inculcating an energy-efficiency culture to designing buildings that optimise energy usage, the Malaysian Government will be adopting measures to reduce wastage by enhacing energy efficiency.
The newly established Energy, Green Technology and Water Ministry is now making a stand to promote green technology. The National Green Technology policy, which was launched this July, is set to promote low carbon technology and ensure sustainable development. Also, an Energy Efficiency Master Plan is being worked out by the Ministry to meet its mandate. Collaboration with overseas universities on green technology will also be explored.
...and CommerciallyPerak, a state in north-western peninsular, will become the first state in Malaysia to adopt the Power Purchase Agreement (PPA) for solar energy. Expected to be implemented in 2011, PPA, a financial scheme first introduced in the USA - allows users capital-free access to solar equipment over a long-term contract to buy electricity at a fixed price lower than that charged by utility companies. The Red Solar (M) Sdn Bhd, the local company behind this PPA arragement, targets to produce 100MW of PhotoVoltaic cells per annum by 2011.
On the construction industry's front, the Malaysia Institute of Architects (PAM) and Association of Consulting Engineers Malaysia (ACEM) has developed the Green Building Index this January, which incorporates recognised practices in environmental design and performance that will serve to promote environmentally-friendly buildings in Malaysia.
A property-developing company in Malaysia, Sime Darby, has embarked on developing Energy Efficiency (EE) and sustainable townships. 13.200 houses currently under construction in its two townships will be equipped with EE building materials, such as solar power heating and energy-saving light bulbs.

Source: theStar, New Straits Times, Corporate websites of Q-Cells, First Solar and SunPower