SPEECH BY
YB DATO’ SRI PETER CHIN FAH KUI
MINISTER OF ENERGY, GREEN TECHNOLOGY AND WATER
AT THE PENJANABEBAS DINNER 2011
FRIDAY, DECEMBER 16, 2011, 8.00 PM
JW MARRIOTT KUALA LUMPUR

Dr. Ong Peng Su
President, PenjanaBebas

Y.Bhg Datuk Ir. Ahmad Fauzi Hasan
Chief Executive Officer
Suruhanjaya Tenaga

Senior Officials from Ministries and Government Agencies

Council Members, PenjanaBebas

Dato’-Dato’, Datin-Datin,

Distinguished Guests,

Ladies and Gentlemen,

A very good evening to all of you.

1.    It gives me great pleasure to be present here this evening for the PenjanaBebas Dinner 2011. I thank the Association for inviting me once again to this celebration between PenjanaBebas and its business partners and key stakeholders. This get-together is certainly a great opportunity for me to meet many of you who play a key role in the country’s energy sector.

2.    As all of you are well aware, the Government launched the Economic Transformation Programme (ETP) in September 2010 to transform our nation into a high income economy by 2020. Under the ETP, there are 12 National Key Economic Areas (NKEAs) and the Oil, Gas and Energy (OGE) Sector is one among them as it is a key component of the Malaysian economy, since it contributes approximately 20 per cent of the country’s GDP.  Within this OGE Sector, 12 Entry Point Projects have identified that are based on 4 thrusts. One of the fundamental guiding thrust for the energy sector is “Building a Sustainable Energy Platform for Growth”.

3.    What this means is that Malaysia must diversify its energy resources and also honour its commitment to lower carbon emissions by 40% in terms of emissions intensity of GDP by 2020, as announced by the Honorable Prime Minister, YAB Datuk Sri Najib Tun Razak in Copenhagen in 2009. This will require that environmentally friendly and fuel efficient technologies need to be employed in the power generation sector. Also, greater emphasis should be placed on the development and promotion of non-fossil sources of energy. Although these efforts under supply side management will have a direct impact on green house gas emissions, all of us – the Government, the private sector and the general public must also embrace energy efficiency measures to ensure that we collectively conserve the finite resources that we have. Without such concerted efforts, the country will be more susceptible to the volatility of the global energy market.

Ladies and Gentlemen,

4.    Let’s be cognizant of the fact that it is impossible for us to sustain the “cheap” energy through Government subsidies. Our domestic fossil resources will be depleted very quickly if we do not work together to use it more efficiently. In this regard, the Government is taking a holistic view to ensure that the nation has a sustainable energy sector by restructuring the Malaysian Electricity Supply Industry (MESI) based on the 9 reform initiatives that has been identified by the study that was commissioned by Khazanah Nasional Bhd and the Government.

5.    I am sure there are many of you here who have had the opportunity to discuss on some of these reform initiatives with MyPOWER Corporation, the dedicated company that has been set up by the Government and which reports directly to my Ministry on developing these reform packages. In creating a sustainable MESI, the Government strongly believes in transparency and engagement with all stakeholders to ensure the success of these reform initiatives. I am happy to note that one of the initiative’s that has already been implemented resulting from the work of MyPOWER is the extraction of unintended gains by IPPs resulting from increase in gas prices.

6.    As for the electricity industry structure post 2016, i.e. post-expiry of the 1st Generation IPPs, we need to identify an appropriate model for the country. It must be agreed that the move to a market structure is inevitable starting with an open competitive bidding for capacity, which then can be followed by a partial bidding system for energy before embarking on a full-fledged market system. This will of course entail the strengthening of the existing regulatory framework, expansion of the existing functions of the regulator as well as changes to the legal framework. Further discussion will be held with all stakeholders to see the direction we will take. Therefore, I would like to urge everyone to look at the bigger picture while discussing the best options objectively in order to create a sustainable electricity supply market for our country.

Ladies and Gentlemen,

7.    Before I conclude, I would also like to commend PenjanaBebas for its CSR initiative – the Green Schools Campaign in which five schools were installed with 5kWp grid-connected photovoltaic systems. I am pleased to have had the opportunity to launch the solar energy programme at the previous PenjanaBebas Dinner in 2009 and subsequently witness the commissioning of the system in Sekolah Menengah Kebangsaan Lutong, Miri early this year. More importantly, I am delighted to note that the Association, in partnership with my Ministry, will be expanding the Green School Campaign in the coming year to another 30 schools. Syabas!

8.    Malaysia, like any other country, will have to steer our economy towards a more sustainable model, particularly our natural resources and impact on the environment. There is a lot of opportunity for “green” to be a part of our economy including our energy sector. However, I do realise that there will be adjustments for all of us if we are to fully embrace green technology especially during the transition period. It is never going to be easy but I am confident, if all of us, the Government, the private sector including members of PenjanaBebas, and the Rakyat work together, we will be able to achieve what we set out to accomplish.

9.    Let me once again thank PenjanaBebas, for inviting me to this important industry-wide dinner. I am pleased with the strong rapport between the industry and my Ministry, as it is important for all of us to work together for the good of the country. I sincerely hope this good relationship that we have will continue to be enhanced in the future.

Thank you and enjoy the rest of the evening.