KUALA LUMPUR: Renewable energy (RE) players anticipate 2025 Budget will provide more measures for a favourable environment for RE projects, enabling the industry to scale and significantly contribute to Malaysia's sustainability goals.
Samaiden Group Bhd group managing director Datuk Ir Chow Pui Hee said the industry hopes for improved access to competitive green bonds and financing options, which would help address the significant upfront costs of RE adoption and provide the necessary capital to drive sustainable initiatives.
"Expanding access to low-interest green financing through programmes like the Green Technology Financing Scheme is crucial for reducing the financial burden on investors."
"Specific funds or financing solutions could be established for battery energy storage system (BESS), offering low-interest loans or guarantees for companies investing in energy storage systems," she told Business Times.
Chow also suggested the government consider the continuation of existing incentives and new incentive for capital intensive green investment that are critical components of the nation's strategy to drive the RE growth and support its energy transition.
She said that both Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) should continue to exist and to include more coverage, like capital grants or subsidies for BESS projects, particularly for pilot projects or large-scale energy storage initiatives that demonstrate innovative applications.
Similar to programmes available for electric vehicle purchases, Chow said a cash rebate incentive could be introduced for environmental, social, and governance (ESG) initiatives in renewable energy.
According to her, this would motivate companies to integrate sustainability practices into their operations, directly aligning with the government's green goals.
At the same time, she said the 2025 Budget needs to emphasise stringent ESG reporting standards to encourage greater transparency and accountability among industry players.
"These measures could drive boards to be more proactive in adopting RE practices and integrating sustainability into their corporate strategies," Chow noted.
She also hopes the government will have an allocation of utilities scale projects to foster energy transition.
"The RE sector would benefit from government frameworks that encourage diverse industries to participate in utilities scale or mega projects, helping more sectors, including smaller industries, access renewable power through shared agreements."
"This collective approach could make agreements more attractive to solar power producers, enabling competitive pricing and accelerating renewable energy adoption," she added.