Malaysia's Renewable Energy Demand Likely Resilient Despite Higher Charges
Dow Jones10-15
0117 GMT - Malaysia's renewable energy demand could remain intact despite a higher grid access charge, says Hong Leong IB analyst David Ng in a note. The higher charge of 0.18 ringgit/kWh, up from 0.14 ringgit/kWh appears slightly negative for renewable energy developers. However, demand for renewable energy is expected to be supported by data centers seeking to cut carbon emissions and hedge against potential increases in electricity tariffs, he reckons. Near-term opportunities are expected to come mainly from existing projects in the pipeline, as the tight end-2028 completion deadline may limit the scope for new projects, he adds. Hong Leong maintains an overweight rating on Malaysia's renewable energy sector.
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