KUALA LUMPUR (Nov 10): Environmental impact assessments alone could take up to three years in Malaysia, underscoring the challenges renewable energy faces to meet rising demand.
Lengthy approval process is among several hurdles that could delay project implementation, according to Sustainable Energy Development Authority Malaysia director of strategic planning division Nor Azah Masrom. Construction could take another two years, she noted.
Other challenges included land acquisition, financing and grid connection requirements, she said.
Nor Azah was speaking during a panel discussion at Bursa Malaysia's Sectoral Series: Powering the AI Era — Watt Next? The comments come as Malaysia seeks to expand its renewable energy capacity to feed power-hungry data centres.
Tenaga Nasional Bhd (KL:TENAGA), the country’s national electric utility firm, is now supplying power to 36 data centres, with dozens more in the pipeline.
Nor Azah also pointed to local authority fees, which developers might not have fully accounted for during the initial planning stages, potentially adding to project costs. She did not disclose a figure of how much is typically incurred by developers.
She said early coordination between developers and relevant agencies, as well as proper project planning and risk assessment, are important to ensure projects could secure financing and be completed on time.
Technical capabilities were another priority, with workers needing training in renewable energy installation, design, commissioning and maintenance.
Renewable energy for those integrating artificial intelligence will also require additional monitoring, and there will be extra costs for water quality and soil improvement in highly sensitive areas, she flagged.
Nor Azah said the ability to translate planned projects into those that are financed, connected to the grid and commissioned would be crucial to expanding the country's renewable energy pipeline.
The comments were made during a panel discussion titled Powering Malaysia’s Digital Economy: Renewable Energy and Data Centre Roadmap, which was moderated by Bursa Malaysia head of carbon markets Dr Wei-nee Chen, and featured Energy Commission director of market regulation and planning division Rumaizi Abdul Halim and Malaysian Investment Development Authority director of business services and regional operations Noorzita Mohamad Nor as speakers.