Malaysia recently launched the Corporate Green Power Programme (CGPP), a renewable energy initiative that allows corporate consumers to virtually purchase solar energy from solar developers. This is achieved through the use of virtual power purchase agreements, or Corporate Green Power Agreement. This alert explains the mechanism of CGPP and sets out the potential investment opportunities and benefits to corporate consumers, particularly those with plants and factories that have high energy usage.
On 7 November 2022, the Energy Commission issued an information guide for the Corporate Green Power Programme. The CGPP aims to promote the adoption of green energy amongst corporate companies in Malaysia through the use of virtual power purchase agreements which is also known as the Corporate Green Power Agreement. The CGPP is open for application starting from 7 November 2022 until 6 February 2023.
The Malaysian Government has introduced the Corporate Green Power Programme to encourage the adoption of green electricity amongst corporate companies in Malaysia. This new initiative will be in addition to existing initiatives such as the net energy metering scheme, self-consumption schemes and the green electricity tariff programme to bolster Malaysia’s renewable energy agenda and promote carbon reduction.
On 7 October 2022 the Malaysian Minister of Finance tabled the Budget 2023 which covers the following 3 agendas, each supported by the agenda’s individual core focus and strategies:
• Responsive Budget – to expand fiscal policy
• Responsible Budget – to ensure financial sustainability of the Government
• Reformist Budget – to implement reforms and enact policies that could adapt to new norms
The comprehensive list of objectives within the Budget 2023 among others, is to strengthen economic recovery post COVID-19 and numerous incentives and action plans had been laid out to achieve these objectives. This alert focuses on the Budget 2023 highlights that would have an impact on the projects and infrastructure industries in Malaysia.
The Malaysian Government had, on 19 September 2022, launched the National Energy Policy 2022-2040 (“NEP”) with the following objectives:
• Enhancing macroeconomic resilience and energy security
• Achieving social equitability and affordability
• Ensuring environmental sustainability
In order to achieve these objectives, numerous action plans have been developed and laid out in the NEP and this client alert aims to provide an overview of the Low Carbon Aspiration 2040 initiative and highlight key action plans that would be of interest to all types of investors and companies intending to comply with environmental, social and governance requirements.
The Malaysian Ministry of Housing and Local Government has announced that the request for proposal (RFP) for a waste-to-energy project in Sungai Udang, Malacca (“WtE Project”) will be released on 18 February 2021. Consistent with the previous RFP for the waste-to-energy project located in Bukit Payong that was issued in August 2020, the WtE Project will be carried out on a public-private partnership basis. We understand the WtE Project is near to a current sanitary landfill and the driver is to reduce waste disposal rate at the landfill.
The WtE Project is the second of the six proposed waste-to-energy projects that the federal government of Malaysia is planning to develop by 2021.
The Malaysian Ministry of Housing and Local Government had on 27 July 2020 issued an announcement for the request for proposal (“RFP”) for a waste-to-energy project in Bukit Payong, Johor on a public-private partnership basis (“WtE Project”). The WtE Project is one of the 6 expected waste to energy projects that the federal government of Malaysia is planning to develop by 2021.