There has been significant progress in the key initiatives outlined under the National Energy Transition Roadmap (NETR). To recall, the first and second phases of the NETR were launched in July and August last year. The NETR is structured into two parts. The first part highlights 10 flagship catalyst projects and impact initiatives centered around six energy transition levers: energy efficiency, renewable energy (RE), hydrogen, bioenergy, green mobility, and carbon capture, usage, and storage (CCUS). The second part details the comprehensive roadmap, which includes 50 initiatives across these six energy transition levers and five enablers. Refer to the details in our previous article.
- NETR Launch – Steps towards Sustainable Green Economy
- NETR Launch – Steps towards Sustainable Green Economy (Part 2)
It has been a full year since the launch of NETR and we are seeing commendable progress. In particular, the recent launch of the Corporate Renewable Energy Supply Scheme (CRESS) is crucial for advancing the third-party access (TPA) mechanism, which is essential for promoting fair competition among RE producers and could significantly boost domestic RE capacity expansion. Also, the Energy Exchange Malaysia (ENEGEM) is also rolled out to drive energy exports to Singapore. ENEGEM acts as the marketplace to sell green electricity through a bidding mechanism operated by a single buyer Finally, various solar power projects are being actively rolled out, while feasibility studies on biomass clustering, as well as co-firing of ammonia and hydrogen, are currently underway. Note that the initiatives listed here are not exhaustive.
According to the NETR’s projection, by 2050, 70% Renewable Energy (RE) capacity will be dominated by solar at 58% of total installed capacity, followed by hydro and bioenergy at 11% and 1%. This indicates substantial potential for continued earnings growth among solar companies, particularly for Engineering, Procurement, Construction & Commissioning (EPCC) players and asset owners. Separately, Tenaga Nasional Berhad (TNB) is a key sector beneficiary, with its Transmission & Distribution (T&D) arm driving NETR through stable infrastructure. Long-term capex spending on upgrades will expand its Regulated Asset Base (RAB), supported by rising energy demand. Also, Independent Power Producers like Malakoff may see new gas plant expansions in the future following their retirement of existing coal plants.
Identify investment opportunities – Phillip Managed Account for Retirement (PMART) and Phillip Managed Account (PMA) ESG
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