Government to Boost Renewable Energy Capacity for Data Centres

Kuala Lumpur: The government is committed to gradually and systematically increasing the renewable energy (RE) capacity mix in the national electricity supply, as access to green electricity is deemed a "pre-requisite" for data centre development and ensuring that RE needs for these centres can be met. Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir emphasized that this initiative would not significantly impact the overall energy supply or lead to substantial cost implications for electricity users.

According to BERNAMA News Agency, Akmal Nasrullah outlined a strategic plan during the Dewan Rakyat's question-and-answer session. In response to Datuk Ali Anak Biju's (PN-Saratok) query about measures to meet the renewable energy demands of data centres and the potential effects on future tariffs, he stated that the government aims to increase the share of green electricity from RE sources to 31 percent by 2025, 40 percent by 2035, and 70 percent by 2050.

The minister expressed confidence that these goals can be achieved through various programmes, including Feed-in-Tariff (FiT), large-scale solar (LSS), Net Energy Metering (NEM), Self-Consumption (Selco), New Enhanced Dispatch Arrangement (NEDA), Corporate Green Power (CGP), and Green Electricity Tariff (GET). Additionally, the Corporate Renewable Energy Supply Scheme (CRESS) programme has been introduced to facilitate corporate companies, including data centres, in accessing green electricity directly from RE generators.

This new arrangement allows data centres to obtain the necessary green electricity by utilizing utility grid network services and paying an access fee. This fee would help cover some costs associated with strengthening the electricity supply system and grid network. Akmal Nasrullah noted that this approach is vital to mitigating the impact of tariff hikes on general electricity users, as the cost of enhancing the grid network to support data centres is substantial.

In addressing a supplementary question from Datuk Seri Hasni Mohammad (BN-Simpang Renggam) regarding the development of electricity generation in Johor, Akmal Nasrullah indicated that there is currently no need for such development, even with the anticipated increase in usage due to data centre growth. He assured that the government would continue to monitor the national electricity supply system and assess developments as needed.