TANJUNG MALIM: The government is committed to helping the development and growth of the renewable energy industry in this country, said Deputy Finance Minister I Datuk Seri Ahmad Maslan.

He said among the assistance given was the injection of RM5 billion in funds to support sustainable development projects.

"The government has also provided RM2 billion in Budget 2023 to support the green and sustainable energy sector, including financing projects or start-ups that use green technology or low-carbon practices," he said during his working visit to the Sungai Slim Hydro Power Station in Sungai Slim, near here, today.

Ahmad said in addition, the Green Technology Financing Scheme (GTFS) will be implemented with an increase in allocation totalling RM3 billion until 2025 and the scope of financing has been expanded to more sustainable projects, such as Small Hydro Power Stations and EVs (electric vehicles).

He said the government recognises development involving net zero carbon or "net-zero emissions" by 2050 and hopes for more participation from the private sector.

"This includes participation from G Capital Berhad (GCAP) and PHREC (Perak Hydro Renewable Energy Corporation Sdn Bhd). We know that this resource is a resource that does not involve raw materials that fluctuate (uncertainty) in price and does not involve increased costs," he said.

GCAP through PHREC, is the concession holder in Perak for 49 rivers for the construction of small hydroelectric power plants with a total estimated capacity of 286.1 Megawatt (MW), in addition to several small hydroelectric power plants with a capacity of 26 MW to be developed in Pahang.

With an investment of RM4.5 billion, GCAP in a statement informed that the hydroelectric station project with a capacity of 300 MW is expected to generate income of at least RM12 billion from the date of commercial operation.

According to GCAP to date, there are three small hydroelectric power plants with a capacity of 29 MW in Perak that are already in operation and the electricity produced is channeled to Tenaga Nasional Berhad (TNB) through a renewable energy purchase agreement (REPPA) that has been signed.

"Now, the mission of the concession is to develop the remaining hydroelectric power plants with a capacity of 257.1 MW in Perak and 26 MW of hydroelectric power in Pahang.

"A total of 110 MW Feed-in-Tariff Incentive (FiT) has been obtained for approval (to sell to the national grid) and the remaining 118.2 MW have been planned with a pre-qualification study and a complete power system, ready for bidding of the Sustainable Energy Development Authority (SEDA) under the FiT Scheme," according to the statement. .

-- BERNAMA