PUTRAJAYA: The government has agreed to lift the ban on the export of renewable energy (RE) to enhance Malaysia's green economy policy.
Economy Minister Rafizi Ramli said this would allow local companies in the RE sector to benefit from cross-border renewable energy export.
"The cabinet, in principle, has agreed to lift the ban, subject to the methods on how the electricity exchange system will be developed.
"This will benefit local companies in the renewable energy sector through cross-border renewable energy export," he told a joint press conference with Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad here today.
The ban was previously implemented by the government under former prime minister Tan Sri Muhyiddin Yassin's administration.
It was criticised by many, including former Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin, who is strongly against it.
Yeo had said the ban would only make the country less friendly to investors and hinder the creation of jobs in the green technology.
Meanwhile, Rafizi said through the Renewable Energy Strategic Development proposal presented to the cabinet on May 3, the government had agreed to increase the capacity of RE up to 70 per cent by 2050.
He said the expansion of the capacity would allow surplus RE capacity to be exchanged across borders with neighbouring countries through a mechanism determined by the government.
"If we stick to the current plans (on the development of renewable energy in the country), we will reach only 35 per cent of capacity by 2050.
"Hence, a review would be done to establish the direction of renewable energy development in the country after taking into account the current trends and increasing demands in the industry."
He said the cabinet had agreed to accelerate the installation of solar energy systems in government buildings, which will see RM50 million in electricity bill savings.
"Aside from accelerating the RE industry, this will also be the government's long-term investment to reduce electricity bills in government premises."
At the same time, Nik Nazmi said the increase in the RE capacity in the electricity supply system was anticipated to require new investments amounted to RM637 billion until 2050.
This includes investments in renewable energy generation sources and the strengthening of grid infrastructure.
"The details of the costs and investment values involved, as well as the implications to tariff electricity consumers, will be examined by Natural Resources, Environment and Climate Change Ministry."