KUALA LUMPUR: Malaysia's booming renewable enery (RE) sector has attracted the first Taiwanese energy player as GreenRock Energy teams up with Solarvest Holdings Bhd to accelerate the development of green energy solutions in both countries.
Solarvest, Malaysia's largest public listed solar company by market value, and GreenRock Energy, a major RE player in Taiwan, are targeting to achieve 1.0 gigawatts (GW) of RE projects in Malaysia in the next five years.
The Malaysian energy market is actively transforming to achieve its green energy development goals.
Earlier this year, the government launched the LSS5 large-scale solar programme with a total of 2.0 GW of RE capacity, marking the largest solar project in history.
The initiative complements the National Energy Transformation Policy, which encompasses a variety of green energy developments such as energy efficiency, RE zones and green hydrogen, all aimed at reducing carbon emissions and achieving a low-carbon nation by 2040.
Under its RE roadmap called MyRER to decarbonise the electricity supply sector, the government aims to increase RE installed capacity from 23 per cent (8.5 GW) of total mix in 2020 to 31 per cent (12.9 GW) by 2025 and 40 per cent (18 GW) by 2035.
The RE installed capacity targets will help cut electricity sector carbon emissions by 45 per cent in 2030 and 60 per cent in 2035.
To further support the nation's ambition of becoming a regional RE hub, the government also plans to adopt a Third Party Access (TPA) mechanism and establish an RE trading centre. These initiatives will enable the export of cross-border RE and accelerate the energy transition in Southeast Asia.
Malaysia: A gateway to Southeast Asia
GreenRock Energy sees Malaysia as a strategic gateway to expanding its green energy footprint across Southeast Asia, according to Solarvest.
"Recognising Malaysia's supportive government policies and the region's growing demand for renewable energy, GreenRock will leverage its collaborations with local companies and governments to strengthen its regional technical and project management capabilities.
The partnership, it added, marks a milestone for a Taiwanese company entering the Malaysian RE market.
"Through this collaboration, GreenRock Energy anticipates an advancement in its regional expansion by leveraging Solarvest's strengths in Malaysia and the Southeast Asia market, thereby driving the region's energy transformation and sustainable development.
"GreenRock Energy is optimistic about Malaysia's green energy prospects and is committed to leading the energy revolution in creating a low-carbon future," it added.
As of March this year, Solarvest achieved 1.2 GW of project track record regionally, with 440MW of projects under construction and 348MW of solar assets, representing its leadership position and extensive experience in the region.
Solarvest provides comprehensive services, including solar development, design, applications, construction, operation, maintenance, and asset management.
Besides Malaysia, Solarvest has actively developed renewable energy businesses in six other Asian countries namely Taiwan, Singapore, the Philippines, Vietnam, Thailand and Indonesia.
In Taiwan, Solarvest is collaborating with GreenRock Energy on large-scale agrivoltaic and aquavoltaic projects, targeting a total of 500MW of projects.
Meanwhile, Kenanga Research said the bright outlook of the RE market in Malaysia is underpinned by the government's strong commitment towards RE.
The firm likes Solarvest for the export potential of RE and improved commercial viability of solar power projects on falling solar panel prices and its strong market position, execution track record, clientele and value proposition of its PV system financing programme.
Solarvest also boasts strong earnings visibility backed by a sizeable outstanding order and tender books, and recurring incomes from a growing portfolio of solar assets, Kenanga Research added.