Penang On Track To Achieve 10 Pct Renewable Energy Target By 2030 – Chow
GEORGE TOWN, July 28 (Bernama) -- Penang is making steady progress in its renewable energy transition, with clean energy now contributing about six per cent of the state’s energy mix.
Chief Minister Chow Kon Yeow said the state was confident of increasing the share of renewable energy to 10 per cent by 2030 under the Penang Energy Framework, while improving energy efficiency by 25 per cent by 2030.
“We are confident of achieving our 10 per cent target, and once we reach it, we will set even higher ambitions to accelerate our clean energy transition,” he said when launching Phase 2 of the Solar Project Installation at Renesas Semiconductor (Malaysia) Sdn Bhd here today.
He said renewable energy projects undertaken by industry players were crucial in supporting the state’s sustainability agenda, adding that Renesas’ latest solar installation demonstrated how businesses could strengthen their competitiveness while contributing to environmental sustainability.
The project features a solar-panel car park installation that is expected to generate renewable electricity for the company’s daily operations while reducing carbon dioxide emissions by about 720 tonnes annually, supporting both the company’s environmental, social and governance (ESG) commitments and the state’s climate goals.
Chow said the Renesas installation would improve energy efficiency, lower operating costs over time and create long-term value for businesses while reinforcing Penang’s position as a leading hub for sustainable manufacturing and high-value industries.
He said the state government continued to support industries in adopting sustainable manufacturing practices through the Penang Green Industry Programme (PGIP), with its Sustainable and Holistic Industry Forward Transformation Enable (SHIFT Enable) initiative providing access to the Climate Mitigation (CM) Fund to help companies, particularly small and medium enterprises (SMEs), strengthen ESG practices and improve carbon management.
“Today's project by Renesas is an excellent example of how industry can support the state's sustainability agenda. It shows that renewable energy investments strengthen business competitiveness while contributing to environmental sustainability,” he said.
Chow said the state government did not provide specific incentives for companies investing in renewable energy installations, but had partnered with Alliance Bank to establish a CM Fund initiative to help SMEs obtain financing for ESG-related projects and accelerate their sustainability journey.
Meanwhile, Tenaga Nasional Bhd (TNB) chief retail officer Datuk Kamal Ariffin said the approximately RM2 million project was implemented under a zero-capital expenditure (capex) model, allowing Renesas to install the solar system without upfront capital expenditure.
He said the installation was financed through a partnership between TNB and GSPARX Sdn Bhd, with the investment to be recovered through the energy cost savings generated by the system over a projected period of less than 10 years.
Kamal said the project, which forms part of Renesas’ total 10-megawatt (MW) solar installation programme, supports the country’s commitment to achieving net-zero carbon emissions by 2050 and increasing the share of renewable energy in the national energy mix to between 30 and 35 per cent by 2035.
Renesas Internal Manufacturing Sites global head Ooi Heng Ee said the company had also implemented similar solar projects at its facilities in Kedah and Kuala Langat in collaboration with TNB as part of its nationwide sustainability strategy.
He said the initiatives reflected the company’s commitment to ESG principles and sustainable manufacturing across its operations in Malaysia.
Ooi said the company had earlier completed the installation of rooftop solar panels across its manufacturing facilities, which are expected to reduce carbon dioxide emissions by about 3,264 tonnes annually.
He said the solar panel car park project marked the next phase of the company’s sustainability journey and, upon completion, is expected to reduce carbon dioxide emissions by a further 720 tonnes annually, equivalent to preserving more than 32,000 trees each year.
-- BERNAMA