Malaysia races to go green as Iran war squeezes oil supply

Malaysia is doubling down on renewables to secure its energy future, its deputy prime minister has said, as the government scrambles to mitigate the fallout from an escalating energy crisis triggered by the Iran war.Tehran all but shut access to the Strait of Hormuz last month in retaliation for the US and Israel’s attacks, disrupting a key energy chokepoint through which about 25 per cent of global seaborne oil trade and nearly a fifth of global liquefied natural gas exports pass – much of which is destined for Asia.The conflict sent Brent crude prices soaring to as high as US$120 a barrel, with prices averaging above US$100 over the past month as Asian economies raced to find alternative sources to shore up rapidly dwindling supply to feed their energy-intensive industries and hundreds of millions of consumers.In such an environment, energy security is no longer optional“In such an environment, energy security is no longer optional – it is a strategic national priority,” Malaysian Deputy Prime Minister Fadillah Yusof said on Tuesday while launching a solar energy project supplying power to US semiconductor firm Micron.“Therefore, we must continue to strengthen our position by developing stable, domestic and sustainable energy sources to ensure long-term resilience.”Malaysia’s government earlier said it had sufficient crude oil supply to last through May, but warned the country would enter a “very critical period” afterwards, with industries already reporting shortages in oil-derived raw materials used in everything from plastics to medicines and medical devices.Solar panels are seen at the Malaysia" class="entity-link entity-organization" data-entity-id="118501" data-entity-type="organization">University of Technology Malaysia’s campus in Kuala Lumpur. Photo: ShutterstockFadillah, who also oversees the country’s energy transition portfolio, said the crisis showed the need for Malaysia to ramp up green energy generation and develop large-scale battery storage systems to boost renewable energy supply into the national grid.Malaysia had 12 gigawatts of installed renewable energy capacity as of last year, driven primarily by solar installations, he said.The minister called for more joint-venture projects between public and private corporations, such as the two newly completed solar farms, to speed up renewable energy adoption.Engineers walk along a rooftop with solar panel arrays installed in this still from a video shared by Solarvest Group. Photo: Instagram/solarvestgroupThe farms were jointly developed by Solarvest Holdings, the country’s largest solar power company, and national grid operator Tenaga Nasional at a combined cost of 300 million ringgit (US$75.4 million). Together, they represent Malaysia’s largest public-private renewable energy project to date.The two facilities are set to provide a combined 60 megawatts of power to Micron’s two facilities in Penang and Johor state via the national grid, as well as to stock exchange operator Bursa Malaysia, Texas Instruments’ semiconductor facilities and NTT Global Data Centres in Selangor.A solar farm in Selangor state. Malaysia’s government aims to raise renewables to 40 per cent of power generation within the next decade. Photo: ShutterstockFadillah said growing renewables’ share of the energy mix would also give Malaysia a decisive edge in attracting hi-tech foreign investment, in line with the government’s target of raising renewables to 40 per cent of power generation by 2035, and 70 per cent by 2050.Further Reading“Malaysia is laying the foundation for a future where energy is cleaner, more secure and more competitive,” he said.