CM urges more factories to switch to green energy
Meeting environmental, social and governance (ESG) standards should be incentive enough for companies to adopt solar energy without relying on state grants, says Penang Chief Minister Chow Kon Yeow.
“It is the company’s corporate social responsibility (CSR) and they are complying with their ESG commitment themselves.
“Their customers also want to know that they are meeting ESG standards, so I think that is a good incentive in itself,” he said after launching phase two of a solar installation project at Renesas Semiconductor (Malaysia) Sdn Bhd in Bayan Lepas, Penang.
Chow said while the state government did not offer specific incentives or grants for solar panel installations, financial assistance was available.
“We have the SHIFT Enable Climate Mitigation Fund, a collaboration between Penang Green Council and Alliance Bank.
“Sometimes companies require funding and the fund enables small and medium enterprises (SMEs) to adopt ESG practices,” he said.
Launched in April, the fund helps manufacturers, particularly SMEs, in financing decarbonisation and ESG initiatives.
On the Renesas project, the semiconductor manufacturer completed its rooftop solar panel installation in Bayan Lepas earlier this year.
The company is mbarking on its second phase, involving the construction of solar panel canopies over about 200 parking bays.
Tenaga Nasional Bhd chief retail officer Datuk Kamal Arifin A. Rahman said the rooftop installation cost about RM2mil and was implemented under a zero-capex financing model through GSPARX Sdn Bhd.
This setup allows businesses to instal solar panels with zero upfront capital cost.
“The factory does not have to pay anything upfront.
“We fund the installation and recover the capital expenditure through the electricity savings generated.
“We expect to recover the investment in less than 10 years, after which the savings will benefit Renesas,” he said.
Kamal added that the project supported Malaysia’s broader renewable energy agenda.
“It supports the country’s net-zero commitment by 2050.
“We are also working towards having renewable energy contribute between 30% and 35% of the national energy mix by 2035,” he said.
Renesas internal manufacturing sites global head Ooi Heng Ee said the company would invest RM1bil in Malaysia over the next two years, creating about 200 high-value jobs in the semiconductor and artificial intelligence industries.
He added that the company was advancing its smart factory initiatives through automation, digitalisation, artificial intelligence and advanced analytics to improve productivity and sustainability.
Ooi said the rooftop solar panels completed earlier this year would reduce carbon emissions by about 3,264 tonnes annually.
He said the new solar carpark project would offset another 720 tonnes of carbon dioxide a year – equivalent to preserving more than 32,000 trees.
Chow described Renesas as an important player in Penang’s electrical and electronics industry, with its ongoing investments strengthening the state’s position as a high-value manufacturing hub.
He added that renewable energy currently accounted for about 6% of Penang’s energy mix under the Penang Energy Framework, with the state targeting 10% by 2030 before setting higher goals.
