The event underscores Malaysia’s critical role in the regional energy landscape, while also engaging with the broader ASEAN perspective 

by HIDAYATH HISHAM 

SOUTH-EAST Asia’s power and energy professionals came together at the recent Enlit Asia Malaysia 2024 conference to address the region’s energy challenges. 

The event provided a collaborative platform where industry stakeholders, including regulators, policymakers and private sector leaders, discussed the ongoing energy transition, focusing on balancing energy security, affordability and sustainability. 

Against the backdrop of a fast-growing energy market, the event underscored Malaysia’s critical role in the regional energy landscape while also engaging with the broader ASEAN perspective. 

A panel discussion titled “ASEAN Energy Transition: Driving Collaboration and Innovation” was held with panellists from Tenaga Nasional Bhd (TNB), Sarawak Energy Bhd (SEB), Energy Commission, Malakoff Corp Bhd and GE Vernova (Asia). 

They discussed Malaysia’s role in leading the energy transition across the ASEAN region, touching on critical issues such as renewable energy (RE) adoption, regional cooperation and sustainable energy growth. 

Malaysia is moving at a very good pace forward to the energy transition with the launch of the energy arc, says Megat Jalaluddin (pic: MEDIA MULIA)

Malaysia’s Energy Future and Regional Collaboration 

TNB president and CEO Datuk Megat Jalaluddin Megat Hassan began by outlining Malaysia’s progress in transitioning to cleaner energy sources. 

He said Malaysia is moving at a very good pace forward to the energy transition with the launch of the energy arc. 

“We can project now that the country’s capacity demand by 2050 will be triple from the current capacity that we have,” he said. 

Megat Jalaluddin explained that Malaysia must be prepared to produce more electricity in anticipation of tripling energy demand by 2050. 

This increase in demand illustrates the urgency of developing sustainable energy solutions and Malaysia is taking steps to meet these future needs. 

He also pointed out that Malaysia’s energy transition is not happening in isolation as other ASEAN countries are experiencing similar increases in energy demand. 

Megat Jalaluddin underlined the importance of regional collaboration through the ASEAN power grid, which would link the national grids of different countries and enable them to share resources. 

“With the ASEAN power grid in place, the potential of us sharing resources, growth and economic benefit will be greater, not only for each country but for the whole region,” he said. 

By connecting the national grids, countries would be able to share electricity and make better use of RE resources, which would improve energy access across the region and help each country grow economically. 

The ASEAN power grid would also allow countries to tap into RE sources from one another, maximising efficiency. 

For instance, Malaysia and Vietnam have access to hydropower, while Malaysia and Indonesia have an abundance of solar energy due to favourable weather conditions. 

Meanwhile, countries like Singapore, which have higher energy demand but fewer natural resources, could benefit from this shared grid. 

This setup would ensure that all countries in the region could access clean, reliable and affordable energy, driving the overall energy transition in South-East Asia. 

RE and Sustainable Growth in South-East Asia 

SEB CEO Datuk Sharbini Suhaili elaborated on the significant changes that have occurred in the energy industry over the past decade, mainly driven by climate change, environmental challenges and innovations in technology. 

“We are made up of around 25,000 islands. We have 700 million people and a very wide area of about 4.5 million sq km and different countries in South-East Asia are at different phases of development,” he said. The geography of South-East Asia creates unique challenges for the region’s energy transition.

Countries like Indonesia and the Philippines, which consist of thousands of islands, face difficulties in delivering energy to remote areas. 

This geographic diversity also means that each country is at a different stage in its development, making it harder to have a one-size-fits-all approach to the energy transition. 

Sharbini also pointed out that RE sources, such as hydropower and wind power, are often located far from the regions where energy demand is highest. This presents a challenge in delivering power efficiently. 

He echoed Megat Jalaluddin’s remarks about the importance of regional collaboration through the ASEAN power grid. 

“There will be no transition without interconnection in this part of the world,” he said. 

By creating a connected power grid across South-East Asia, countries can share their RE resources more efficiently, making it easier and cheaper for everyone to access clean energy. 

SEB has been leading efforts to drive this regional collaboration. Sharbini said the company has already connected parts of Malaysia to Indonesia through the Borneo grid, a major achievement in regional cooperation. 

“We have connected to West Kalimantan in 2016 and hopefully by the end of the year or next year we will be connected to Sarawak. We are discussing with Brunei, Singapore and TNB on subsea cables to Peninsular Malay- sia,” he added. 

By expanding this grid to include more countries, the region can work together to create a more sustainable and resilient energy system. 

Sharbini also emphasised the need for strong political support and enabling policies to ensure the success of the ASEAN power grid. 

“We need political will, for all governments to work together and enable policies to make sure that all these private sectors can deliver,” he said. 

He added that the private sector will play a critical role in building and maintaining the infrastructure needed for the grid, but they will need supportive government policies to make it happen. 

With the right policies in place, South-East Asia can build a power grid that enables all countries to share RE and transition away from fossil fuels. 

Malaysia’s RE Goals and Challenges

Energy Commission CEO Datuk Razib Dawood discussed Malaysia’s progress towards its RE targets, with a particular focus on solar energy. 

Malaysia has been working to expand its solar power capacity in recent years and Razib was optimistic about the country’s achievements so far. 

“As of today, I can say that Malaysia will reach a solar photovoltaic (PV) installation of up to 7,000 megawatts soon,” he said. 

This would mark a significant milestone in Malaysia’s RE journey, as solar power is one of the country’s most abundant renewable resources. 

However, Razib was quick to point out that while Malaysia is making progress, there is still a lot of work to be done in South-East Asia as a whole. 

ASEAN countries have set a collective target to ensure that 23% of the region’s energy comes from renewable sources by 2025, but as of 2022, only 15.6% of energy in the region is renewable. 

“As of last year, 2023, RE counted only 15.6% of total primary energy supply, indicating the scale effort required to achieve the 2025 goal of 23%,” he said. 

The heavy dependency on coal, oil and natural gas complicates the transition to RE while maintaining a reliable energy supply, Razib says (pic: TMR)

This gap shows that countries need to accelerate their efforts if they are to meet the region’s RE targets. 

One of the biggest challenges in this transition is the region’s reliance on fossil fuels, particularly coal, oil and natural gas. 

“This heavy dependency on coal, oil and natural gas complicates the transition to RE while maintaining a reliable energy supply,” Razib added. 

Many ASEAN countries rely on fossil fuels for most of their energy needs and shifting away from these sources presents significant challenges. 

It requires massive investment in renewable infrastructure, as well as careful planning to ensure that the energy supply remains stable during the transition. 

Despite these challenges, Razib remains optimistic, pointing to the progress made by individual countries, including Malaysia. 

In the power sector, RE now accounts for nearly 34% of the installed capacity in the region. 

This progress is encouraging, but the region will need to continue investing in renewable projects if it is to meet its 2025 and 2050 goals. 

Economic and Environmental Opportunities in the Energy 

Transition 

Malakoff CEO Anwar Syahrin Abdul Ajib discussed the balance between short-term profitability and long-term sustainability in the context of the energy transition. 

The leading independent power producer in Malaysia, has traditionally relied on coal for a significant portion of its energy generation. 

However, the company is now investing in cleaner energy sources to align with Malaysia’s sustainability goals. 

“Our focus is predominantly in the area of generating power to be supplied to the grid,” he said. 

Malakoff is investing in Combined Cycle Gas Turbine (CCGT) plants, which are more efficient and produce fewer emissions than traditional coal-fired plants. 

Anwar Syahrin highlighted some of the company’s current projects aimed at reducing its reliance on coal, such as waste-to-energy plants and co-firing, a process in which biomass is burned alongside coal to reduce carbon emissions. 

“We are investing and accelerating in the CCGT plants because I think that is very important for us to have a solid base in terms of income stream so that we can reinvest back into other forms of energy generation,” he said. 

Some of Malakoff’s current projects aims at reducing its reliance on coal, such as waste-to-energy plants and co-firing, says Anwar Syahrin (Source: malakoff.com)

By diversifying its energy portfolio and investing in cleaner technologies, Malakoff is aiming to balance the need for profitability with the push for sustainability. 

Technology will play a key role in accelerating the region’s energy transition.

Asia Gas Power GE Vernova CEO Ramesh Singaram explained how advances in technology are enabling countries to decarbonise while maintaining economic growth. “When you electrify the system, you enable more decarbonisation technology to come in,” he said.

The electrification of industries and homes is an essential step in reducing carbon emissions, but it needs to be done in a way that supports economic growth and provides affordable energy for all. 

Ramesh also emphasised the importance of the ASEAN power grid, which will allow countries to share RE resources and optimise energy production across the region. 

“By connecting the region through a unified grid, countries can share their surplus available energy, making the most of geographical and resource complementarities,” he said. 

The power grid would allow countries with surplus RE, such as hydro or solar power, to share that energy with other countries that might be experiencing shortages. 

This would not only improve energy security but also drive down costs, making clean energy more affordable for consumers. 

The Role of Policy and Regulation 

The panellists stressed the importance of strong government policies and regulatory frameworks to ensure a smooth transition to RE. 

Razib discussed how Malaysia is working to create policies that support RE development, including a third-party access framework that encourages more private investment in clean energy projects. 

By opening up the energy market to third-party investors, Malaysia is hoping to accelerate the development of RE infrastructure. 

Razib also pointed out the importance of balancing the different goals of the energy transition — environmental sustainability, energy affordability and energy security. 

“We are not going to compromise one against the other. Neither are we going to fight between these objectives. A government will strive to get the right balance,” he said. 

This means ensuring that the shift to RE does not come at the cost of a reliable energy supply or result in steep price increases for consumers. 

The government must work closely with the private sector to strike a balance between these competing priorities. 

Similarly, Megat Jalaluddin stressed the importance of a just energy transition. 

He explained that TNB is focused on ensuring that the energy transition benefits all stakeholders, from consumers to employees. 

“We have to provide the customers the opportunity for green energy consumption at the least cost,” he said. 

This approach, known as “stakeholder capitalism,” ensures that everyone has a role to play in the transition to clean energy. 

A Path Forward for Energy 

The discussions at the Enlit Asia Malaysia 2024 plenary demonstrated the enormous potential for South-East Asia to lead the global energy transition. 

The panellists agreed that collaboration between countries, strong government policies and the right technologies are key to making the transition work for everyone. 

The development of the ASEAN power grid will be a critical step in this journey, allowing countries to share RE resources and reduce their dependence on fossil fuels. 

“At the end of the day, it is all for environmental sustainability,” said Megat Jalaluddin. This sentiment was shared by the other panellists, who agreed that the energy transition is not just about economic growth but about creating a better, more sustainable world for future generations.

With the right policies in place and a commitment to regional collaboration, South-East Asia is well-positioned to lead the world in clean energy innovation. 

The journey towards a sustainable and secure energy future has just begun, and the steps being taken today will shape the future of energy for decades to come. 

• This article first appeared in The Malaysian Reserve weekly print edition