Following the launch of National Energy Transition Roadmap (NETR) Part 1 on 27th July 2023 which outlines 10 flagship catalyst projects under 6 energy transition level, the government launched the NETR Part 2 on 29th August 2023 with a suite of targets, enablers and initiatives for energy transition under a Responsible Transition pathway.
The NETR Part 2 expands and upgrades national targets from existing policies such as the National Energy Policy 2022-2040.
Notably, it introduces new national targets for bioenergy, hydrogen and carbon capture, utilization and storage.
Hydrogen?
Hydrogen?
It sets natural gas as a transition fuel which will contribute 56% of national energy demand followed by renewables (23%, up from 4% in 2023) and oil (21%, down from 35% in 2023) in 2050.
In addition, it reiterates no new coal fire plant and being close to fully phasing-out coal for power generation by 2050 driven by natural retirement timelines of existing plants.
The national targets highlighted in the NETR are further broken down into key milestones which translate into potential investment opportunities in different phases under the 6 energy transition levers.
Specifically in renewable energy, the NETR expands the interim RE share of installed capacity target to 52% from 41% in 2040, but delays the 31% target from 2025 to 2030.
In summary, the NETR is critical for Malaysia to navigate the complexity of energy transition on a large scale at all fronts, shifting the nation from a traditional fossil fuel-based economy to a high-value green economy.
In line with our national aspiration to be net zero as early as 2050, the targets, enablers and initiatives for energy transition outlined in the NETR set the national commitment and pathway on energy transition over the next three decades, which the government may review to capitalize on new and emerging technologies moving forward.
Comments from Analysts 👀:
RHB Research: "We believe TNB is one of the key beneficiaries of the NETR – largely from the potential earnings upside from higher T&D assets (including wheeling charges) and a potential strong ramp-up in its domestic RE presence. TNB also appears to be the biggest winner in the recently awarded corporate green power programme (CGPP)."
CGS-CIMB Securities: "TNB remains one of our top picks and key beneficiary of the National Energy Transition Roadmap (NETR)."
~ End ~
Follow our active FB page via
Follow our Crowdfunding FB page via
Follow our e-wallet FB page via
No comments:
Post a Comment
Finance Malaysia Blog appreciates your comment. Cheers!