Virtual Power Purchase Agreement (VPPA)

1. The Introduction Of Virtual Power Purchase Agreement (VPPA) Into The Malaysian Renewable Energy Industry

2. To understand how VPPA works, it is helpful to firstly establish how a Power Purchase Agreement ("PPA") works in our current ecosystem. In Malaysia, we are more than familiar with how conventional PPAs operate with it being established in Malaysia since the mid-1990s. 

3. Generally, PPA is an agreement between a solar power producer ("SPP") and Tenaga Nasional Berhad ("TNB") as the distribution licensee for the sale and purchase of electricity generated by the SPP. The electricity produced by the SPP's solar photovoltaic ("solar PV") would be physically transmitted into the local grid (owned by TNB) and such electricity would then be sold by TNB to end users/consumers3.

4. Furthermore, Net Energy Metering Scheme ("NEM") was introduced in 2016 which allowed consumers to enter into direct PPA with SPPs/investors. Under NEM, investors install and operate solar PVs (which are owned by the investors) on the consumers' premises and the electricity produced can be sold (via a PPA) directly to the consumers at a rate agreed between both parties with excess electricity sold to TNB4.

5. VPPA on the other hand, also known as Synthetic PPA, differ from the conventional PPA as it does not actually concern the transmission of the physical energy (electrons) produced by the solar PVs. As its name suggests, the supply of electricity is done virtually rather than physically. In other words, consumers continue to receive their electricity from local utility providers and the SPP will continue to sell electricity which they produce to local utility providers.

Industry 5.0: towards a collaborative manufacturing environment

1. In just a decade, Industry 4.0 has revolutionized the day-to-day operations of many companies in the manufacturing sector. Thanks to the technological advances that have emerged over the last few years, these organizations have been able to increase their efficiency and productivity. Now experts are opening the door to a new concept: Industry 5.0. 

2. Manufacturing is one of the biggest drivers of the European economy. Proof of this is that, between 2009 and 2019, it accounted for around 20% of the EU’s GDP. Moreover, according to 2020 data, it is a sector that employs more than 35 million people.

3. Yet, while European industry has decades of experience and is one of the most competitive in the world, it is exposed to an increasingly complex and volatile geopolitical and economic landscape. It is these constant challenges that push it to continually innovate, to further improve its efficiency at different points in the value chain; to be more flexible to the changing demands of the global consumer, and to work to maintain its leadership as a global benchmark for quality.

4. To a large extent, this innovation effort is reflected in the intensive use of new technologies, essential tools for automating, interconnecting and optimizing industrial processes. Indeed, the fourth industrial revolution represents the sector’s ambition to adopt and implement technological advances to cope with an increasingly changing world and economy.

5. Now, after a decade in vogue, it seems that what we know as Industry 4.0 is clearing the way for a new concept that goes beyond pure technological change in the factory. We are referring to Industry 5.0, a vision that is beginning to gain prominence and that has come to place, at the center of the industrial revolution, its capacity to have a positive impact on society.

UK-Malaysia 2023 Trade and Investment Trends

1. The UK has been investing in Malaysia for the past 60 years, in fact, it was the leading FDI investor in Malaysia for its initial several years after independence. However, by the mid-1980s, for numerous reasons, the UK was overtaken by Japan (focused on the electronics industry) and Singapore (increasing trade linkages) in FDI investment. These FDI trends have accelerated in today’s rapidly evolving multi-polar greening world, led by technology and digitization. 

2. Within the past decade, not only has UK interest in FDI in Malaysia declined, three of the UK’s largest companies have made significant exits. Conversely, Malaysia has become an increasingly active investor in the UK over the past decade and is currently leading two of the UK’s leading infrastructure projects. In spite of these developments, both countries house large, international businesses which combined with their financial markets can assist both countries in developing future growth. 

Cambodia SDG Investor Map launched to accelerate sustainable development

1. New market intelligence tool identifies 15 Investment Opportunity Areas guiding the private sector to focus on SDG priority sectors that could benefit from expanded financing options.

2. The Cambodia SDG Investor Map, a market intelligence tool that identifies viable Investment Opportunity Areas aligned with the Cambodia Sustainable Development Goals (SDGs), was launched by the Royal Government of Cambodia (RGC), United Nations Development Programme (UNDP) with the support of the Centre for Impact Investing and Practices (CIIP) established by Temasek Trust.