KUALA LUMPUR: Maybank Investment Bank Reserch is encouraged over recent comments by the Minister of Energy, Science, Technology, Environment, and Climate Change (MESTECC) on fuel costs and taxes.
The Minister was quoted as saying that she was not in favour of raising tariffs for the green agenda due to the difficulties caused to the poor. She had added that a carbon tax was not in the pipeline.
Maybank Investment noted that the Net Energy Metering (NEM) scheme will be improved where produced electricity will be theoretically sold back to the grid at the customer's net tariff.
This would enhance savings to small-scale generators of solar energy.
It added that a lease concept has been introduced where leasors can install solar panels for interested vustomers at no upfront cost.
Furthermore, there will be a new round of tender for large-scale solar plants in 2019.
The research house has a hold call on energy major Tenaga Nasional Bhd
with a target price of RM16.
"With high coal prices throughout 2H18, the upcoming 1H19 tariff review would again serve as a litmus test for the pass-through mechanism," it said.
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