PUTRAJAYA: The renewable energy (RE) capacity in the country’s electricity supply is targeted to reach 70 per cent by 2050 to create new economic opportunities for the nation and attract multinationals, especially RE100 companies, to operate here, said Economy Minister Rafizi Ramli (pix).

RE100 is a global initiative involving companies that are committed to 100 per cent RE across their operations.

Rafizi said the Cabinet on May 3, 2023, agreed for the RE capacity target to be raised to 70 per cent by 2050 under the RE Strategic Development Roadmap after studying the memorandum on the RE Strategic Development Road Map and Trade Policy tabled.

As of last December, the installed capacity for RE in the nation’s power supply stood at 25 per cent, he said at a joint media conference with Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad here today.

Rafizi said that the RE capacity increase would enable the cross-border trade of any excess capacity with neighbouring countries through a mechanism to be developed and determined by the government via a cross-border electricity exchange system under the RE Trade Policy.

“The establishment of an electric power market system to conduct cross-border RE trade will put Malaysia ahead as a regional RE centre,” he said.

Rafizi said the setting of the new target for RE capacity and energy mix will boost transition towards RE by 11 times from 2023 to 2050, easing the electricity cost for the people in the long term after the completion of the power generation transition to RE.

He said the Cabinet also approved the acceleration and enhancement of solar power system installation at government buildings to give direct benefits in terms of electricity cost savings to ministries and government agencies.

“A total of RM50 million has been allocated to instal solar infrastructure on roofs and government facilities nationwide in the six-month period towards year-end, and a larger allocation will be provided for this purpose under the next development expenditure,” he added.

Meanwhile, Nik Nazmi said efforts to increase the RE capacity would require new investments estimated at RM637 billion up to year 2050.

This includes investments in RE generation resources as well as the strengthening of the grid infrastructure, he added. -Bernama