Latest news with #CorporateRenewableEnergySupplyScheme
The Star
11-07-2025
- Business
- The Star
Tariff reform to reshape power sector
The shift in cost structure is expected to spur demand for renewable solutions. PETALING JAYA: Power and utilities companies are expected to benefit from the upcoming electricity tariff restructuring, with industry analysts forecasting a surge in renewable energy (RE) adoption, grid investment, and energy storage solutions. The shift, effective July 1, 2025, is part of the Regulatory Period 4 (RP4) reforms aimed at reshaping the nation's electricity market towards greater efficiency and sustainability. According to TA Research, the tariff overhaul is likely to generate far-reaching implications across the energy value chain. 'The new tariff schedule is essentially designed to drive load smoothing and improve overall system efficiency, evident by the enhanced time-of-use coverage and rising maximum demand charges – this could in turn catalyse demand for RE and energy storage to reduce grid power consumption, especially during peak hours,' the research house said in a sector update. Electricity users will now be billed based on four distinct components – energy, capacity, network and retail charges – moving away from the previously tiered structure. While domestic consumers are largely insulated through the Energy Efficiency Incentive, an estimated 29% of the 3,300 non-domestic medium voltage users could face higher bills, particularly those with low load factors. This shift in cost structure was expected to spur demand for renewable solutions. 'RE engineering, procurement, construction, and commissioning (EPCC) players such as Samaiden Group Bhd , Solarvest Holdings Bhd , Sunview Group Bhd and Pekat Group Bhd are potential beneficiaries of potentially increasing demand for RE under the new RP4 tariffs and ahead of the upcoming carbon pricing implementation,' TA Research noted. Meanwhile, incumbent utility firms such as Tenaga Nasional Bhd (TNB) and Malakoff Corp Bhd are also poised to benefit. 'Beyond the EPCC players, incumbent utility companies such as TNB and Malakoff are also potential beneficiaries of expanding RE asset portfolios, while TNB specifically is a beneficiary of grid capital expenditure to accommodate higher RE penetration,' the firm added. A key area of opportunity lies in the Corporate Renewable Energy Supply Scheme (Cress), which allows large energy users to directly source RE from private producers. TA Research said, 'At estimated effective rate of 58.98 sen per kilowatt-hour (kWh), we estimate the difference between grid power and Cress will narrow from close to 10 sen per kWh previously to just about two sen per kWh.' The narrowing price gap, combined with the additional green attribute value of three to five sen per kWh, made Cress more attractive under the new RP4 tariff schedule. Furthermore, carbon pricing – expected to be introduced in 2026 – could tilt the economics even further in favour of RE. 'The incremental cost for grid power could further narrow the difference with Cress to sub one sen per kWh, which would further improve the attractiveness of Cress,' it said. TA Research maintained its 'overweight' call on the power and utilities sector, citing demand-supply tightness in the generation market; record-high RE rollout; and expansion in grid capital expenditure to accommodate the energy transition. The research house pegged its target prices for Samaiden at RM1.38, TNB at RM17.30 and Malakoff at RM1.08.
The Sun
06-07-2025
- Business
- The Sun
DayOne Data Centers prioritises efficient use of power and water
JOHOR BAHRU: Global pioneer in digital infrastructure platform, DayOne Data Centers (DayOne) is focusing on optimising its energy and water consumption to support Malaysia's sustainability goals while maintaining high-performance operations as global demand for digital infrastructure surges. DayOne Data Centers Malaysia Sdn Bhd general manager Jimmy Yan said data centres inherently consume a significant amount of electricity and water to power servers and artificial intelligence (AI) systems, and efficiency remains the company's core strategy. 'If you talk about daily consumption, we're looking at a few million litres of water per day. But rather than absolute numbers, we measure efficiency using indicators like power (PUE) and water utilisation efficiency (WUE). 'Our PUE and WUE remain at relatively low levels, and that's a better gauge of performance,' he told Bernama in an interview recently. Johor is expected to host 60% of Malaysia's total data centre capacity by 2030, cementing its role as the digital hub for Southeast Asia, where transformation will be accelerated by the Johor-Singapore Special Economic Zone. Yan said several of DayOne's facilities use 'zero water' cooling technologies to eliminate water dependency, although such systems require higher energy input. 'There's always a trade-off. If you don't use water, you end up using more power. So we try to strike a balance by adopting the most efficient technologies.' The company also emphasises green energy adoption, including rooftop solar installation and collaboration with Tenaga Nasional Bhd through the Corporate Renewable Energy Supply Scheme (CRESS) to source solar energy. The agreement enables DayOne to secure up to 500 megawatts of renewable energy over a 21-year term to support its data centre operations in Malaysia, making DayOne the first company to execute a bilateral energy supply contract under the national CRESS framework. 'Solar does not reduce overall power consumption, but it replaces brown energy with green energy. So we are tackling this on two fronts, reducing waste through efficiency and replacing traditional sources with renewables,' Yan said. As Malaysia positions itself as a regional digital hub, DayOne believes building infrastructure responsibly is crucial. 'We cannot afford to fall behind. Digital infrastructure is a must, and we are making sure it grows in harmony with sustainability,' he said. Headquartered in Singapore, DayOne positions the Singapore–Johor–Riau region as a critical interconnected data centre hub. DayOne has completed its RM15 billion equivalent multicurrency financing, comprising a RM7.5 billion murabahah term financing facility and a US$1.7 billion (RM7.2 billion) offshore term loan facility.
Barnama
06-07-2025
- Business
- Barnama
DayOne Data Centers Prioritises Efficiency In Energy, Water Usage
REGION - SOUTHERN > NEWS By Hasnah Jusid JOHOR BAHRU, July 6 (Bernama) -- Global pioneer in digital infrastructure platforms, DayOne Data Centers (DayOne), has focused on optimising its energy and water consumption to support Malaysia's sustainability goals while maintaining high-performance operations as global demand for digital infrastructure surges. DayOne Data Centers Malaysia Sdn Bhd general manager Jimmy Yan said data centres inherently consume a significant amount of electricity and water to power servers and artificial intelligence (AI) systems, and efficiency remains the company's core strategy. bootstrap slideshow 'If you talk about daily consumption, we're looking at a few million litres of water per day. But rather than absolute numbers, we measure efficiency using indicators like power (PUE) and water utilisation efficiency (WUE). 'Our PUE and WUE remain at relatively low levels, and that's a better gauge of performance,' he told Bernama in an interview recently. Johor is expected to host 60 per cent of Malaysia's total data centre capacity by 2030, cementing its role as the digital hub for Southeast Asia, where transformation will be accelerated by the Johor-Singapore Special Economic Zone. Jimmy added that several of DayOne's facilities use 'zero water' cooling technologies to eliminate water dependency, although such systems require higher energy input. 'There's always a trade-off. If you don't use water, you end up using more power. So we try to strike a balance by adopting the most efficient technologies,' he said. The company also emphasises green energy adoption, including rooftop solar installation and collaboration with Tenaga Nasional Bhd through the Corporate Renewable Energy Supply Scheme (CRESS) initiative to source solar energy.
The Sun
29-06-2025
- Business
- The Sun
Balancing innovation and responsibility
MALAYSIA is racing toward a digital future – one powered by a booming data centre industry projected to consume over 20 GW of electricity by 2040, as forecast by the Ministry of Energy Transition and Water Transformation (Petra). This explosive growth is unlocking vast economic potential but also highlighting the way that Malaysia must balance the demands of a thriving digital economy with the environmental challenges it brings. According to Deputy Investment, Trade and Industry Minister Liew Chin Tong, Malaysia's data centre industry has witnessed substantial growth, with investments totalling RM184.7 billion from 2021 to December 2024 thanks to the increasing demand for cloud computing, artificial intelligence (AI), and digital services. Our proximity to Singapore, which imposed a moratorium on new data centres due to resource constraints, has further enhanced Malaysia's appeal. Local communities, particularly in Johor and Selangor, are seeing new employment opportunities and infrastructure development as global players establish operations in these regions. Reuters reported that the investment made by one of the world's largest technology companies in Malaysia is expected to generate approximately US$10.9 billion in new revenues over the next four years and create more than 37,000 jobs, demonstrating the sector's potential to drive national growth. The economic benefits are clear. Faced with significant opportunities for growth, it's all the more important that we carefully consider our responsibilities to the wider community, and the impacts on the places we live and work. The impact that data centres pose to the environment needs to be carefully managed. Malaysia's Ministry of Energy Transition and Water Transformation has projected that electricity demand from data centres, which require continuous power and extensive cooling systems, will reach 7.7 GW by 2030 and could surge to 20.9 GW by 2040. To mitigate these issues, the government has implemented several forward-looking initiatives. The National Energy Transition Roadmap (NETR), introduced by the Ministry of Economy, aims to achieve 70% renewable energy capacity by 2050, an ambitious leap from the current 25%. Additionally, the Corporate Renewable Energy Supply Scheme (CRESS) allows data centre operators to source energy directly from green power producers, bypassing the national grid. The significant amount of water required to cool data centres have also raised alarms. The National Water Services Commission (Suruhanjaya Perkhidmatan Air Negara/SPAN) warns that unchecked water usage by data centres could contribute to a water crisis. In response, several strategies have been adopted to manage water consumption. Water Usage Effectiveness metrics help track and promote efficient water management practices within data centres while companies have collaborated with state-owned entities to develop recycled water supply schemes, reducing reliance on potable water. There is also growing interest in alternative cooling technologies, including immersion cooling, which can significantly lower both water and energy consumption. These are important strategies, and it is critical that we continue to build on this work to ensure that we are balancing our economic growth with the urgent need for environmental stewardship. We know that collaboration between public and private sectors is an essential part of ensuring responsible growth of any sector, so it's great to see that the government has taken a proactive stance in regulating and guiding the development of data centres. The Ministry of Investment, Trade, and Industry's guidelines outline best practices for energy and water efficiency, safety, scalability, and the adoption of smart technologies. Environmental Impact Assessments are mandatory for projects with significant ecological implications to ensure new data centres consider and mitigate environmental impacts. Government incentives, including potential tax breaks, also encourage green practices such as renewable energy integration, advanced cooling systems, and efficient water usage. Beyond government action, industry stakeholders are actively contributing to responsible practices within the data centre ecosystem. The YTL Group 2024 Sustainability Report highlighted that YTL Green Data Centre Park in Johor integrates advanced technologies and energy-efficient designs including solar-powered infrastructure, advanced cooling systems, and rainwater harvesting systems to minimise environmental impact while ensuring high performance. With an expected capacity of 500MW, the park stands as a regional benchmark for balancing technological advancement with environmental responsibility. We have also seen leading global data centre providers focusing on energy efficiency to meet their carbon neutrality goals and investing in rooftop solar panels and virtual power purchase agreements for solar farms. Addressing the dual priorities of economic development and environmental sustainability requires a multi-pronged approach. One potential solution is the development of responsible data centre certification programmes. By creating a national certification that evaluates facilities on their energy efficiency, water usage, and carbon emissions, the government can incentivise more sustainable choices. Another opportunity lies in regional collaboration, where Southeast Asian nations work together to share technologies, regulatory best practices, and renewable energy resources. Investment in research and development is also crucial. Government grants and private sector initiatives can support the creation of advanced cooling systems, AI-driven energy management, and water recycling innovations tailored to Malaysia's tropical climate. Lastly, transparent reporting and environmental accountability must be prioritised to ensure measurable progress and public trust. Malaysia stands at a pivotal crossroads: the path forward must blend innovation with responsibility. By fostering collaboration across government, industry, and academia, Malaysia can lead Southeast Asia not just in digital capability, but in responsible digital leadership. Achieving this vision will require actionable policies, measurable standards, transparent reporting, and shared accountability.
The Sun
16-06-2025
- Business
- The Sun
Global interconnectedness under strain amid rising geopolitical tensions
KUALA LUMPUR: Global interconnectedness is under strain due to rising uncertainties, eroding the predictability, reliability and stability of existing global trade and economic systems, said Prime Minister Datuk Seri Anwar Ibrahim. Speaking at the Energy Asia 2025 today, he said geopolitical tensions, retaliatory tariffs and disrupted supply chains have shaken the foundations of these systems, with the fragility most evident in the energy and climate sectors. 'Rather than fostering collaboration, we are witnessing polarising policy shifts driven by strategic competition, even as energy security remains out of reach for many,' he said in his keynote address at the Energy Asia 2025 opening ceremony here today. Elaborating on the equitable energy transition for Asia, he said the region must determine and articulate a clear and coherent financial architecture that inspires investor confidence and mobilises greater capital flows into renewable energy projects. 'This is critical, given that in 2023, Southeast Asia attracted only two per cent of global clean energy spending, a stark contrast for a region endowed with immense potential in renewable energy,' he added. Zooming in on Malaysia, Anwar said that Malaysia is working to address the gap in the renewable sector through policies such as the Corporate Renewable Energy Supply Scheme (CRESS), which allows companies to procure clean energy via the national grid under a third-party access model. 'Efforts are also underway to incentivise green investment through mechanisms such as the Green Technology Financing Scheme, he added. Touching on the critical pillar that advancing energy transition lies in upgrading electricity grids, Anwar affirmed that ASEAN has taken a significant step by accelerating the ASEAN Power Grid (APG) initiative through an enhanced memorandum of agreement and the establishment of a dedicated APG financing facility network. 'This will enhance cross-border funding flows and bring us closer to a truly integrated regional energy market,' he said. Anwar also stressed that improving efficiency and reducing emissions in existing energy systems must remain a key focus, despite the challenges posed by the continued dominance of fossil fuels, which still account for nearly 80 per cent of global energy supply. He said the global energy transition must be rooted in equity, cautioning that decarbonisation strategies that ignore the needs of the poor and vulnerable could risk deepening inequality. 'Ensuring universal access to affordable, reliable energy is not just a moral imperative; it is foundational to a just energy transition. Energy security, therefore, must go beyond supply stability to include social justice and inclusive access,' he said. Anwar highlighted that this approach is particularly critical for Asia, where energy security remains a prerequisite for progress. 'As the region prepares for its economic renaissance, the path to net zero must recognise that renewable energy can be complemented by emissions-abated oil and gas. This balanced approach ensures affordable access to energy, which is essential for raising living standards,' he said.
