What are Small Modular Reactors (SMRs)?

1. Small modular reactors (SMRs) are advanced nuclear reactors that have a power capacity of up to 300 MW(e) per unit, which is about one-third of the generating capacity of traditional nuclear power reactors. SMRs, which can produce a large amount of low-carbon electricity, are:

• Small – physically a fraction of the size of a conventional nuclear power reactor.

• Modular – making it possible for systems and components to be factory-assembled and transported as a unit to a location for installation.

• Reactors – harnessing nuclear fission to generate heat to produce energy.

The Challenges and Outlook for BESS Developments in Malaysia

1. The Malaysian National Grid and power systems face numerous challenges in the coming years with an expected rise in electricity load and the integration of more renewable energy (RE) sources. Specifically, Malaysia has set RE capacity targets of 31 % and 40 % by 2025 and 2035, respectively, which will be primarily supported by solar (PV), mini-hydro and biomass.

What you need to know about China’s green energy certificate regime

1. Following China’s release of guidelines for the promotion of GEC, here is what companies should know if they plan to enter the trading market.

2. Citing GEC rules, global law firm Norton Rose Fulbright noted that these certificates serve proof of the environmental attributes of green energy electricity. One GEC unit corresponds to 1,000 kilowatt-hours of green energy power, with a validity period of 24 months.

3. These certificates are being issued by the Qualification Management Center for Electricity Business of the National Energy Administration.

Unveiling the SEA Green Economy Index: Tracking Decarbonization Progress in Southeast Asia

1. To better help Southeast Asian markets track their decarbonization progress, the report unveiled the region’s first SEA Green Economy Index which examines how each country is progressing across five metrics with varying weightage totaling 100% – ambition (20%), progress (25%), roadmap (20%), accelerator (25%), and investment (10%).

2. “The index helps provide an objective snapshot of how each country is performing year-on-year and relative to peers. It shows an overview of areas they are doing well and recognizes where progress is being made. It is important to note that this index is constantly evolving as the region continues to tweak initiatives to fit respective markets’ needs,” said Hardcastle.

3. The index shows that Southeast Asia has made some encouraging moves to reduce greenhouse gas emissions, with Singapore and Vietnam making the most progress over the last year. Eight out of 10 countries have net zero targets, and while they have remained the same as the previous year, more than half of the region’s top emitting corporates have set net zero or emission reduction targets, 15 more compared to 2023. In addition, seven countries have shown progress in adopting renewable energy and electric vehicles, preserving forestland, and enhancing health of cropland soil.

4. Translating ambition to action and results will take time. Southeast Asia is still in early adoption and has the opportunity to capture proven and the most cost effective decarbonization initiatives. In 2024, the region needs to double down on the top 13 investable ideas, leverage on the key accelerators to unlock these ideas and ensure better cooperation among governments, corporates, and investors.

Storing hydrogen from renewable energy and solving the problem through reticular chemistry

1. Few chemicals carry as much hope and aspiration as hydrogen. Over the last few years, the first element in the periodic table has gone from a global buzzword to one of the most promising routes to decarbonizing industry, power generation and transport.

2. As production of the gas using low-carbon resources ramps up around the globe, the vision of a green hydrogen-powered economy faces a number of challenges. Alongside scaling production and lowering costs, one of the biggest challenges is hydrogen storage.

WHY IS HYDROGEN ENERGY STORAGE VITAL?

1. Hydrogen has the potential to address two major challenges in the global drive to achieve net zero emissions by 2050. First, it can help tackle the perennial issue of the intermittency of renewable energy sources such as wind and solar. By converting excess power generated on windy or sunny days into hydrogen, the gas can store renewable energy that can then be dispatched at times of peak demand as a clean fuel source for power generation. Second, hydrogen can replace fossil fuels to decarbonize sectors where electrification alone won’t suffice, such as domestic heating, industry, shipping and aviation.

2. The hitch is that, while an excellent medium for renewable energy storage, hydrogen itself is hard to store.

3. This is because it has a low volumetric energy density compared to other gases — such as natural gas — meaning it takes up significantly more space. Also, hydrogen has a boiling point close to absolute zero and requires cryogenic storage. And while it does not typically corrode storage containers, it can cause cracks in metals under certain conditions.

4. Here are four hydrogen storage solutions that could help address these challenges, as mapped out by Hydrogen Europe.

China’s Belt and Road Initiative turns away from coal

1. Ambitious, contentious and big spending, China’s Belt and Road Initiative (BRI) is 10 years old. In that time, China has splashed more than US$1 trillion on overseas infrastructure projects. 

2. Power markets in developing economies have been major beneficiaries. But the rapid growth in much-needed generation capacity has also shone the spotlight on the initiative’s environmental impact and raised critics’ hackles over levels of indebtedness among poorer nations. 

3. Can BRI power sector projects be judged a success? Does its record on sustainability conflict with decarbonisation goals? Can Western efforts to counter China’s influence succeed? 

Can European renewables still turn a profit?

1. The European Union’s ambitious renewable energy target mandates at least 42.5% of EU energy consumption to come from renewable sources by 2030. For that to happen, developers need positive returns on their renewables investments.

2. With technology costs not evolving as hoped, where will the sources of project profitability come from instead?

7 Btpa of carbon capture needed to meet net zero by 2050

 1. Urgency is needed to meet the seven billion tonnes carbon capture (Btpa) required to meet net zero goals in 2050.

2. Energy efficiencies, renewables and alternative fuels will not be enough to meet net zero by 2050.

3. We need a huge amount of carbon to be captured out of our industries and the power sector to decarbonise the last miles that can’t be easily reached by green electrification or alternatives. 

4. Right now, we are on track to meet our base case scenario, which forecasts 2 Btpa of CO2 capture and removal by 2050 – though this corresponds to a  2.5 degree global warming scenario. For net zero by 2050 and a 1.5 degree compliant scenario we would need 7 Btpa. To come close, we need to get shovels in the ground quickly.

Five trends to watch for in the electrolyser supply chain

 1. The electrolytic hydrogen sector is rapidly expanding, with over 85 Mtpa of projects announced and cumulative factory announcements exceeding 218 gigawatts of electrolyser capacity by the end of Q3 2023

2. In the ever-evolving landscape of renewable energy, the burgeoning electrolytic (green) hydrogen sector has made remarkable strides. Over 85 Mtpa of electrolytic hydrogen projects have been announced. This surge in electrolytic hydrogen has brought focus to the electrolyser supply chain, which will need to expand at an unprecedented pace to meet anticipated demand. By the close of the third quarter in 2023, cumulative factory announcements had already surpassed 218 gigawatts of electrolyser capacity.

3. As this sector matures and gathers momentum, profound transformations across the electrolyser supply chain are coming. From product design and operational strategies, to enhancing overall profitability – a shift in paradigms seems inevitable – heralding an exciting era of upheaval and innovation in the electrolytic hydrogen ecosystem.

Driving the energy transition: the EV and batteries outlook

1. Forecasts for the global electric vehicle market show there will be 44 million EVs on the road by 2030. Despite the move to de-carbonise the road transport market, the upfront costs of an EV is still prohibitive to the driver. 

2. To lessen this cost burden for consumers, governments have been offering modest tax credits and purchase subsidies. While these subsidies will give some relief in the short-term, the longer term consideration is focusing on the costs of raw materials and ensuring a protected and uninterrupted stream of battery raw materials (BRMs).

FDI in renewable energy: A success story

 1. The Covid-19 pandemic has accelerated the transition to net zero, making renewable energy a growing attraction for FDI.

2. The race to achieving net-zero emissions is a reality by now across industries and geographies. The timing is just right for investment in renewable energy and other sources of alternative power to bloom, as the sector has matured.

3. According to GlobalData’s FDI Projects Database, foreign direct investment (FDI) into greenfield renewables and alternative power projects has grown by 40% in the period between 2019 and 2021, going from 444 projects worldwide in 2019 to 789 in 2021.

4. Provisional data for 2022 shows that trend is being upheld with a total 811 projects in the period from January to October.

 

Carbon Border Adjustment Mechanism (CBAM)

1. Starting from 1 October 2023 designated imported goods from outside the European Union (EU) will fall under new EU regulations: the Carbon Border Adjustment Mechanism (CBAM). Referred to as CBAM goods. CBAM will be gradually implemented. From 1 October 2023, you will need to report on these goods, and from 1 January 2026, there will be a registration and payment obligation. This page provides you with more information on this matter.

2. CBAM is a price adjustment applied to imports into the EU for designated goods based on their CO2 emissions in the production process outside the EU. The aim of CBAM is to prevent the risk of carbon leakage. Also, by encouraging the reduction of emissions by operators in third countries (countries outside the EU), global carbon emissions should be reduced.

3. CBAM is an EU regulation and part of the 'Fit for 55' package. The goal of this package is to reduce greenhouse gas emissions in the EU by at least 55% by 2030.

4. Currently, the EU operates a system where producers within the EU have to purchase emission allowances for the CO2 emissions of their products (EU Emissions Trading System, EU ETS). The CBAM price adjustment ensures that these producers no longer face a competitive disadvantage when importing from third countries with lower climate standards.

TNB to invest additional RM35 bil over 2025-2030 to beef up grid for energy transition

1. Tenaga Nasional Bhd (TNB) plans to deploy an additional RM35 billion between 2025 to 2030 towards upgrading Malaysia’s power grid, to ensure the infrastructure does not become an obstacle in the nation’s energy transition (ET) endeavours.

2. This is on top of the national utility giant’s RM54 billion non-ET investment allocation for the grid over the same five-year period.

3. This means that TNB plans to invest a total of RM90 billion into Malaysia’s grid in the coming five-year period. This is nearly double the RM46 billion the group allocated for 2018-2024. which comprises RM40 billion for non-ET and RM6 billion for ET.

Tariff and Imbalance Cost Pass-Through (ICPT) implementation for the period of 1st July – 31st December 2023

1. Imbalance Cost Pass-Through (ICPT) implementation for the period of 1st  July – 31st December 2023 are as follows:

2. Domestic customers are not subjected to ICPT implementation.

3. Surcharge of 5.39 sen/kWh for all commercial and industrial customers.

4. The decline of Natural Gas Price has reduced the ICPT surcharge quantum from 8.19 sen/kWh in January 2023 to 5.39 sen/kWh effective 1st July 2023.

GET-ting to Know Malaysia’s Green Electricity Tariff (GET)

1. Businesses and consumers today are living in a time where being part of the clean energy revolution is becoming increasingly easier and more affordable. A few years ago, participating in the movement meant sourcing your own technology, such as solar panels, and installing them in your yard or rooftop.

2. Fast-forward to today, we see a clear diversification – and democratisation – of clean energy vehicles, ranging from government-led initiatives to private sector tools. As the clarion call to join the sustainable energy revolution grows louder, it’s evident that there is a need and demand for greater inclusion and public participation.

3. Enter the Green Electricity Tariff, or GET, is an initiative by the Government of Malaysia, introduced in 2022 to serve as a driver for this purpose. In a nutshell, this innovative tariff allows consumers to purchase green electricity generated from renewable energy, directly from utilities. It’s a great initiative for consumers or businesses interested in being part of the sustainable energy value chain without extensive investment. Here, Energy Watch explores seven interesting facts about the GET that you should know.

Malaysia's National Energy Transition Roadmap (NETR)

 1. Malaysia launched its National Energy Transition Roadmap (NETR) on July 27, 2023 with a strong focus on transforming the economy and creating potential business opportunities in the energy sector. Phase 1 of the NETR unveiled 10 flagship catalyst initiatives that aim to attract investments and generate job opportunities while reducing CO2 emissions by over 10 million tons annually.

Implementation of Imbalance Cost Pass-Through (ICPT) Rates for the Period of 1 July 2023 to 31 December 2023

1. On 23 June 2023, the Government of Malaysia announced a total subsidy allocation of RM5.2 billion for the next ICPT implementation period from 1 July 2023 until 31 December 2023 to protect ~99% of TNB customers in Peninsular Malaysia from the impact of higher fuel costs which accounts for 65% of the electricity bill.

2. In electricity bill, ICPT is a mechanism that is approved by the Government and implemented since 2014 to reflect changes in the cost of electricity generation, specifically fuel costs every six (6) months. For reference, the electricity tariff schedule in Peninsular Malaysia is unchanged since 2014.

Renewable hydrogen production uses old tech in novel way

1. Using deep sea platform technologies to take advantage of stronger winds than those blowing closer to shore was first conceptualized in the 1970s during the energy crises. At that time, the first wind power engineering program in the United States addressed Congress, saying that turbines could eliminate the country’s reliance on imported energy.

2. William Heronemus, a professor of engineering from the University of Massachusetts envisioned offshore wind turbines generating electricity that could power seawater electricity for the storage of that energy as renewable hydrogen fuel.  It took about fifty years, but that vision is now in development from several angles.

3. Projects developing platform technologies for massive wind turbines have become commonplace and are well underway, broadening the access offshore wind has to the stronger winds that blow over deeper waters.

Energy storage technology: three trends to watch

 1. Energy storage market dynamics are shaping the evolution of battery formats, components and production

2. Rapid growth in deployments is making the energy storage system (ESS) sector the new competitive battlefield for battery manufacturers. Whether diversifying from the electric vehicle (EV) market or focusing specifically on ESS, it’s an attractive opportunity to capitalise on a strong outlook over the next decade.

Joint Committee on Climate Change (JC3) aims to align CCPT practices by year-end

1. In a joint statement today, Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) said supporting the credible, consistent and reliable implementation of the Climate Change and Principle-based Taxonomy (CCPT) continues to be one of the key priorities of Committee on Climate Change (JC3), which is a platform established to pursue collaborative actions for building climate resilience within the Malaysian financial sector.

2. The JC3 aims to substantially complete further work to align practices in the implementation of the Climate Change and Principle-based Taxonomy CCPT by the end of 2023.