In Short : Masdar, Abu Dhabi’s renewable energy company, has signed a historic $8 billion deal with the Malaysian government to develop up to 10 gigawatts of renewable energy projects in the country. This landmark agreement aims to accelerate Malaysia’s transition to clean energy, reduce carbon emissions, and boost its renewable energy capacity significantly. Masdar’s expertise and financial commitment are set to play a crucial role in advancing Malaysia’s renewable energy sector, making significant strides towards a sustainable and low-carbon future for the nation. This collaboration highlights the global effort to combat climate change by investing in large-scale renewable energy projects.
In Detail : UAE-based clean energy company Masdar has signed an agreement with Malaysian Investment Development Authority (MIDA) to invest $8bn for up to ten gigawatts (GW) of renewable energy projects.
To include ground mounted and rooftop solar, floating solar, onshore wind and battery energy storage systems, the agreement marks a major milestone in Malaysia’s pursuit of sustainability.
Having announced its Hydrogen Economy & Technology Roadmap earlier this month, the Malaysian government has revealed its goal for hydrogen to be the cornerstone of a new energy economy in the country.
The roadmap also outlined Malaysia’s plan to achieve a sustainably energy mix by promoting the use of hydrogen in energy storage and as a fuel in combined cycle gas turbines.
To address domestic consumption, energy security, sustainability of international energy trading and decarbonisation, the plan calls for further investments in hydrogen technologies.
Malaysia’s latest agreement with Masdar aims to also support the country’s National Energy Transition Roadmap directly, which targets an increase in the current installed renewable capacity goal from 40% in 2040 to 70% by 2050.
“Ahead of the UAE hosting COP28, it further demonstrates Masdar’s and the UAE’s commitment to supporting countries across the world, decarbonising economies at home and abroad, for a just and inclusive energy transition,” commented Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President-Designate.
As part of its Green Agenda – 2030, the UAE has laid out its long-term plan to achieve the goals of sustainable development in the country and make its economy more environment-friendly.
This includes an aim to increase its GDP by 4-5%, increase its exports by about AED 24-25bn ($6.5-6.8bn) and reduce the country’s emissions to less than 100 kilowatt hours.
“The UAE – particularly through Masdar – has set a commendable example in its national pursuit of sustainability, with its recognised leadership in clean energy, low-carbon and nature-based solutions,” said Senator Tengku Datuk Seri Utama Zafrul Aziz, the MITI Minister.
“As such, we welcome Masdar’s potential investment of up to $8bn, with a capacity of up to 10GW in Malaysia’s renewable energy sector.”
This was echoed by Datuk Wira Arham Abdul Rahman, CEO of MIDA, who said that the partnership underscores MIDA’s commitment to drive positive change and embrace the transition towards a more sustainable future.
“MIDA has proactively and enthusiastically engaged with industry partners in the country to foster innovation and cultivate solutions that are aimed at reducing carbon emissions,” he added.
Launched in 2006, Masdar aims to reach 100GW and one million tonnes of green hydrogen production by 2030.