KUALA LUMPUR: Clean energy company Gentari is optimistic over the government's support in Budget 2025 in accelerating clean energy adoption.
In his commentary on the Budget, Sushil Purohit, CEO of the PETRONAS-owned firm, said the new allocation of over RM300mil to the National Energy Transition Facilitation Fund will boost efforts in driving solar and hydrogen initiatives.
"Notably, the budget’s support for projects such as the Kenyir Hybrid Hydro Floating Solar and Green Hydrogen Hub in Terengganu under the NETR, a collaboration between PETRONAS and TNB, highlights the government’s commitment to advancing large-scale renewable energy and hydrogen projects," he said.
Additionally, Sushil said the continued efforts by the government will contribute towards expanding investments into clean energy projects, particularly for hydrogen and EV charging networks.
"Gentari welcomes the ongoing EV incentives, including tax breaks for locally assembled EVs and subsidies for electric motorcycles, which are crucial for increasing the rate of adoption.
"Additionally, the introduction of a carbon tax on industries such as metal, steel and energy by 2026 is a significant step that will encourage industries to invest in clean energy solutions to lower their carbon footprint."
He said to further accelerate progress, initiatives such as green bonds, concessional financing, and expanded tax incentives for early-stage projects could help lower barriers to entry.
These, along with policies to stimulate demand for clean energy, would complement non-fiscal measures aimed at speeding up infrastructure development, such as streamlining regulatory processes to reduce project approval times and setting industry standards for EV charging networks.
"In Malaysia, like other countries, policies and roadmaps to drive the clean energy transition will continue to evolve.
"In this, taking a more progressive and transparent approach will be crucial for fostering a more competitive energy sector and positioning Malaysia as a preferred destination for clean energy investments.
"By providing a stable and predictable policy environment, Malaysia can attract and retain investments, driving innovation and growth in the clean energy sector."
