Energy sector players call for new financial initiatives to support renewable energy

KUALA LUMPUR, Oct 19 (Bernama) – Energy sector players have called on financial institutions in the country to offer better financial support to the renewable energy (RE) industry given its huge potential going forward.

TNB Renewables Sdn Bhd managing director Mohd Yusrizal Mohd Yusof praised the huge availability of financing options in the market but is hoping that the structure of financing and rates could be revisited.

Investors and bankers need to look at more innovative and creative ways to structure better financial rates, said Mohd Yusrizal at the Business Foresight Forum 2022, organised by the Securities Industry Development Corporation here today.

He was one of the speakers during a session titled ‘Investing in Future Renewable Energy’, alongside Malaysia Photovoltaic Industry Association president Davis Chong and Gentari Sdn Bhd head of utility scale, RE Malaysia, Zulkifli Salim.

On other challenges, Chong suggested that the Securities Commission (SC) establish a task force on climate change and financial disclosure to emulate similar implementation in many advanced countries’ capital market regulations.

“This will enforce all listed industry players in the capital market to really push the environmental, social, and governance (ESG) compliance faster,” he said.

He added the current volatility in the foreign exchange market also posed risk to the industry, as a large percentage of the total cost for the purchase of equipment in solar projects was mainly denominated in the US dollar.

In the same session, moderator Abdul Razib Dawood, the chief executive officer of the Energy Commission, proposed the setting up of a green bank and sustainable funds to finance green projects in Malaysia.

-- BERNAMA