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Supply Agreement Renewable Energy Malaysia

As Malaysia continues to embrace renewable energy, supply agreements are becoming increasingly important. With the Malaysian government making a firm commitment to reduce greenhouse gas emissions by up to 45% by 2030, the renewable energy industry is set to see a significant upturn in investment.

To support this growth, renewable energy supply agreements are being put in place, to ensure a reliable source of clean energy is readily available to businesses and industry. In this article, we explore what renewable energy supply agreements are and how they work in Malaysia.

What are Renewable Energy Supply Agreements?

Renewable Energy Supply Agreements (RESAs) are contracts entered into between a renewable energy producer and an energy consumer. The agreement stipulates that the producer will supply energy to the consumer, typically from a renewable source, for a fixed term, often ranging from 10 to 20 years.

The primary purpose of an RESA is to provide a reliable and predictable source of energy to the consumer, while also supporting the development and growth of renewable energy. This is because the producer benefits from a long-term revenue stream, which allows for investment in new projects and infrastructure.

How do RESAs work in Malaysia?

In Malaysia, the Energy Commission (EC) has been tasked with regulating the renewable energy industry and ensuring the country meets its commitments to renewable energy development. This includes managing the licensing and permits required for renewable energy producers, as well as overseeing the RESAs that are put in place.

RESAs in Malaysia are governed by the Renewable Energy Act 2011 and the Renewable Energy Regulations 2014. These regulations specify the terms and conditions that must be included in an RESA, such as the pricing structure, the capacity of the energy supply, and the duration of the agreement.

One of the key benefits of RESAs in Malaysia is that they allow businesses and industries to reduce their carbon footprint while also providing a stable and predictable source of energy. This is particularly important for industries such as manufacturing, which require a high level of energy input and typically have a significant carbon footprint.

In addition, RESAs also provide a boost to the Malaysian economy by supporting the development of renewable energy projects and infrastructure. This creates job opportunities and generates revenue for the government, while also helping to meet Malaysia`s renewable energy targets.

Conclusion

As Malaysia continues to embrace renewable energy, supply agreements are becoming an essential component of the energy industry. By providing a reliable and predictable source of clean energy, RESAs help businesses and industries reduce their carbon footprint while also supporting the growth of renewable energy projects and infrastructure.

The Malaysian government is committed to meeting its renewable energy targets, and RESAs will play a vital role in achieving this goal. As such, businesses and industries that are looking to reduce their carbon footprint and secure a reliable source of energy should consider entering into a renewable energy supply agreement.