Malaysia's Renewable Energy Could Remain Cheaper than Grid Electricity

Dow Jones10-14

0513 GMT - Renewable energy supply could remain significantly cheaper than grid electricity, supporting stronger demand over the next two years, TA Securities analyst Hafriz Hezry says in a note. The national grid access charge has been raised to 0.18 ringgit/kWh from 0.14 ringgit previously. Even so, renewable electricity is estimated to cost 0.54 ringgit/kWh, about 19% less than grid electricity for data centers after factoring in projected January 2027 surcharges, he says. About 3.1 GW of renewable energy projects have been registered, potentially generating 12 billion ringgit-14 billion ringgit in solar project construction work, he adds. TA Securities maintains an overweight rating on Malaysia's power and utilities sector, pegging Samaiden and Tenaga Nasional as potential beneficiaries of the rollout of renewable projects.

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