KUALA LUMPUR: The government is expected to announce electricity tariff adjustments for the second half of the year (2H2023) in the immediate future.
Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said users could take a cue from the stabilising coal and gas prices in 1H2023 to gauge the trend for electricity tariffs in the second half.
The 2H2023 adjustments, through the Imbalance Cost Pass-Through (ICPT) mechanism, will stretch from July 1 to Dec 31 this year as the government reviews the ICPT every six months.
Nik Nazmi’s statement came after Prime Minister Datuk Seri Anwar Ibrahim’s announcement on doing away with electricity subsidy for high income group or T20.
He added that the targeted subsidy would be based on the market trend for coal and gas prices.
“You can reflect market prices of coal and gas to see the trend of electricity tariffs. Now the prices have stabilised from previous years,” he told reporters after launching Asean green hyrogen conference 2023 here today.
On green hydrogen, Nik Nazmi said it could potentially become the main green energy source in the country other than solar energy to accelerate the use of renewable energy (RE).
Despite the challenge of scaling up green hydrogen, he said the ministry was hoping to have more industry players with the latest technology to bolster the adoption of green hydrogen and lower the cost.
“We are ramping up the effort to bolster RE in the country. The recent implementation for targeted subsidy for electricity is to make way for the country to move towards utilising RE fully,” he added.
In his speech when launching the conference, Nik Nazmi said Malaysia accounted for 0.2 per cent of the global bunkering industry.
The country, he added, has the potential to develop and become a hub for hydrogen supply with strategic locations for international shipping.
He said based on International Renewable Energy (IRENA), the demand for fuel for international shippingwould be at 1,060 petajoules (PJ) by 2050, with 60 per cent coming from hydrogen and its derivatives such as ammonia and methanol.
“Green hydrogen is a relatively new source and for it to be considered seriously in the RE game, both demand and supply for it have to be stimulated.
“Investments will be needed for infrastructure to reduce the cost of production and ensure that hydrogen can be accessed by the masses especially consumers just as easily as petrol,” he said.
Asean green hydrogen conference is a closed door conference that gathers industry experts, policymakers, investors, and key stakeholders from the Asean region.
Over 200 participants are expected to attend with 44 speakers from diverse profiles and expertise to discuss sustainable energy solutions.
