KUCHING: Sarawak Energy is committed to furthering national sustainability goals and participating in the carbon credits and renewable energy certificates (RECs) market to support the country’s transition towards a low-carbon future.
At the second installment of the Malaysia Carbon Market Forum (MCMF) in Kuala Lumpur, Sarawak Energy Strategy and Corporate Development senior vice president Dr Chen Shiun spoke on the role of carbon credits and RECs in reducing carbon emissions and supporting Malaysia’s shift to a low-carbon energy system.
During the session titled ‘Taming the Dragon: The Role of Environmental Attributes in Energy Transition’, Dr Chen highlighted how carbon credits and RECs are essential for certifying renewable energy generation.
“The Sarawak government’s Sarawak Energy Transition Policy (SET-P) unveiled at the 2024 Asia Pacific Green Hydrogen Conference is set to further boost energy transition with its key focus areas under which include renewable energy, hydrogen, energy efficiency, green mobility, synthetic fuels, bioenergy, oil and gas, as well as carbon capture, utilisation, and storage (CCUS),” he said.
Dr Chen detailed Sarawak Energy’s projects, including Southeast Asia’s first integrated hydrogen production plant and refuelling station, a 50 megawatt floating solar farm at Batang Ai Hydroelectric Plant, and plans for expanding large-scale solar installations.
He also highlighted the successful completion of Bursa Carbon Exchange’s (BCX) inaugural auction of RECs in June this year, which featured RECs generated from Sarawak Energy’s Murum Hydroelectric Plant (HEP).
“The company has sold over five million RECs to date, a substantial increase from 15,000 sold in 2020 and from when the company first launched its RECs in 2019.
“Sarawak Energy aims to continue growing these numbers by expanding REC sales and exploring new renewable energy projects,” he said.
As carbon credit and REC markets grow in Malaysia, Dr Chen noted the evolution of these markets reflects a growing commitment to sustainability across industries, as companies recognise the importance of integrating environmental responsibility into their operations.
“Sarawak Energy’s introduction of the state’s first REC at the Sustainability and Renewable Energy Forum (SAREF) 2019 was pivotal. We were the first utility in Malaysia to do so and since then, the adoption of our RECs has been steadily increasing as corporations align their operations with sustainability goals,” he said.
He expressed optimism about the future of Malaysia’s REC market, with expectations of diverse renewable energy sources coming into play and more businesses engaging in sustainability.
“The government initiatives, such as the Green Technology Tax Incentive introduced by the federal government in 2014, have further supported this growth,” he said.
As part of the Sarawak government’s Post Covid-19 Development Strategy (PCDS) 2030, Sarawak Energy is continuing to actively invest in renewable energy, particularly hydropower, as a key growth driver.
The PCDS targets include maintaining a 60 per cent renewable energy capacity mix by 2030, reducing carbon dioxide (CO2) emissions by 600,000 tons annually through electrification of the mobility fleet, and generating over 15 per cent income from foreign markets, including power exports.
Meanwhile, the forum also saw the launch of Malaysia Carbon Market Association (MCMA), of which Sarawak Energy is a founding member.
The MCMA has been established to facilitate and accelerate the development of the Malaysia carbon market through inputs towards the formulation of national carbon market policies, talent capability building and strategic collaboration with domestic and international carbon market participants.
