THE government is committed to helping the development and growth of the nation’s renewable energy industry, Deputy Finance Minister I Ahmad Maslan said.

He added that this will include the injection of RM5 billion to support sustainable development projects.

“The government has also provided RM2 billion in Budget 2023 to support the green and sustainable energy sector, including financing projects or start-ups that use green technology or low-carbon practices,” he said at the Sungai Slim hydropower station in Sungai Slim, near Tanjung Malim, today.

Ahmad said the green technology financing scheme (GTFS) will receive RM3 billion until 2025 and the scope of financing has been expanded to more sustainable projects, such as small hydropower stations and electric vehicles.

He said the government recognises development for net zero carbon or “net-zero emissions” by 2050 and hopes for more private sector participation.

“This includes participation from G Capital Bhd (GCAP) and Perak Hydro Renewable Energy Corporation Sdn Bhd (PHREC).

“We know that this resource is a resource that does not involve raw materials that fluctuate in price and thus increased costs,” he said.

GCAP, through PHREC, is the concession holder to construct small hydroelectric power plants in Perak across 49 rivers, with a total estimated capacity of 286MW, in addition to several small hydroelectric power plants with a capacity of 26MW to be developed in Pahang.

With an investment of RM4.5 billion, GCAP said the hydroelectric station project is expected to generate income of at least RM12 billion from the date of commercial operation.

GCAP said to date, there are three small hydroelectric power plants with a capacity of 29MW in Perak already in operation and Tenaga Nasional Berhad (TNB) is the customer, through a renewable energy purchase agreement.

“Now, the mission of the concession is to develop the remaining hydroelectric power plants with a capacity of 257MW in Perak and 26MW of hydroelectric power in Pahang.

“A total of 110MW feed-in-tariff incentive has been approved and the remaining 118MW has been planned with a pre-qualification study and a complete power system, ready for bidding,” GCAP said. – Bernama, April 13, 2023.