The need to switch to renewable energy

Climate scientists have long warned us that global warming is accelerating due to the continuous rise of greenhouse gas emissions such as carbon dioxide into the earth’s atmosphere.

Unless quick action is taken to reduce or stop such emissions, global temperatures will continue to rise, resulting in irreversible damage to our natural habitat.

Josef-Fell ... ‘There’s a need to switch fast to renewable energy to mitigate the impact of rising fossil-fuel cost.’

Many governments are convinced of the urgency to develop strategies that could help alleviate global warming by incorporating climate protection strategies into their economic models.

Hans-Josef Fell, a German parliamentarian and spokesman for the country’s green energy policy, believes that the world economy needs to switch from a fossil-fuels based energy to renewable energy in order to achieve sustainability.

Fell was recently in Malaysia to give a speech at the inaugural Energy Expert Series organised by Malakoff Corp Bhd as part of the company’s community partnership programme.

“The price of fossil fuels (including coal, oil and natural gas) will continue to rise over the years, and these resources are fast depleting due to rising demand for them, and what’s more, these resources are not replenishable,” Fell explains.

“So, there’s a need to switch fast to renewable energy to mitigate the impact of rising fossil-fuel cost on the economy, as well as avert the negative implications of depleting mineral resources, on top of (reducing) carbon emission,” he adds.

The main appeal of renewable energy, which can be derived from naturally replenishable resources such as solar, wind, hydro, wave and geothermal heat, is that it does not cause pollution.

In Malaysia, this theme of sustainability has become increasingly important.

Take, for instance, the incorporation of green technology into the Energy, Green Technology and Water Ministry as well as the launch of the National Green Technology policy last year.

As it currently stands, however, electricity generation in Malaysia is still largely dependent on fossil fuels - coal, oil and natural gas account for around 85% of total electricity generation in the country, while renewable resources make up only around 1%.

According to Ahmad Hadri Haris – the renewable energy advisor to the Energy, Green Technology and Water Ministry, the target is to increase the usage of renewable energy to at least 9% of total electricity generation in Malaysia by 2020.

Hadri is also the chief technical advisor of the Malaysian Building Integrated Photovoltaic (MBIPV) project.

Towards this end, the Malaysian Renewable Energy Act, or RE Act, is currently being drafted by the ministry.

The bill is expected to be tabled in Parliament in October.

“The RE Act is the foundation of promoting renewable energy in the country,” Hadri explains.

But Fell emphasises that an RE Act should be more than just a policy.

“A detailed action plan is also needed,” he says.

The RE Act will incorporate all the critical factors that will ensure the success of the renewable energy sector in the country, according to Ahmad Hadri. These include guaranteed access to the power grid for private producers of renewable energy and high feed-in tariff rates to produce attractive returns on investment and a fixed tenure for those rates in order to provide certainty to investors.

The feed-in tariff rates and duration proposed to the Government vary according to the type of renewal resources.

For instance, wind would command a rate of 23 to 35 sen per kilowatt for 21 years, biomass 24 to 35 sen per kilowatt for 16 years and solar at RM1.25 to RM1.75 for 21 years.

The objective is to ensure a rate of return on investment in renewable energy of between 5% and 13%. It is understood that if the RE Act were to be passed by Parliament within this year, feed-in tariffs for renewable energy would be implemented by 2011.

Feed-in tariffs is a concept aimed at reducing long term cost barriers for the public to work alongside the Government to achieve energy security, mitigate climate change and energy autonomy, while spurring new economic activities.

“Renewable energy deserves much more focus, and there must be serious commitment by all parties, including consumers and individuals, to make our energy green,” says Malakoff chairman Tan Sri Abdul Halim Ali.

He adds that green policies are no longer just “feel good” concepts, but are real issues that we must embrace. “Promoting green energy is not only socially responsible, but it is also commercially and economically viable,” Abdul Halim reckons.

Based on projections by experts, Ahmad Hadri says the renewable energy sector could provide at least RM70bil worth of business revenue for the private sector, and could potentially generate tax revenue of at least RM1.76bil for the Government by 2020.

Another economic and social benefit arising from the renewable energy sector is job creation. Experts have estimated that at least 52,000 jobs could be created from the construction, operation and maintenance of renewable energy plants by 2020.

By The Star Online.

Posted in: News