Kuala lumpur: Penang is making steady progress in its renewable energy transition, with clean energy now contributing about six per cent of the state's energy mix. Chief Minister Chow Kon Yeow expressed confidence in increasing the share of renewable energy to 10 per cent by 2030 under the Penang Energy Framework, alongside improving energy efficiency by 25 per cent by the same year.
According to BERNAMA News Agency, Chow stated, "We are confident of achieving our 10 per cent target, and once we reach it, we will set even higher ambitions to accelerate our clean energy transition." This statement was made during the launch of Phase 2 of the Solar Project Installation at Renesas Semiconductor (Malaysia) Sdn Bhd. The state views renewable energy projects undertaken by industry players as crucial in supporting its sustainability agenda. Renesas' latest solar installation demonstrates how businesses can enhance competitiveness while contributing to environmental sustainability.
The project includes a solar-panel car park installation expected to generate renewable electricity for the company's daily operations and reduce carbon dioxide emissions by about 720 tonnes annually. This supports both the company's environmental, social and governance (ESG) commitments and the state's climate goals. Chow emphasized that the Renesas installation would improve energy efficiency, lower operating costs over time, and create long-term value for businesses while reinforcing Penang's position as a leading hub for sustainable manufacturing and high-value industries.
The state government supports industries in adopting sustainable manufacturing practices through the Penang Green Industry Programme (PGIP) and the Sustainable and Holistic Industry Forward Transformation Enable (SHIFT Enable) initiative. These initiatives provide access to the Climate Mitigation (CM) Fund, helping companies, particularly small and medium enterprises (SMEs), strengthen ESG practices and improve carbon management.
Chow also noted that while the state government does not offer specific incentives for companies investing in renewable energy installations, it has partnered with Alliance Bank to establish a CM Fund initiative. This helps SMEs obtain financing for ESG-related projects and advance their sustainability journey.
Meanwhile, Tenaga Nasional Bhd (TNB) chief retail officer Datuk Kamal Ariffin highlighted that the approximately RM2 million project was implemented under a zero-capital expenditure (capex) model. This allows Renesas to install the solar system without upfront capital expenditure. The installation was financed through a partnership between TNB and GSPARX Sdn Bhd, with the investment to be recovered through energy cost savings over a projected period of less than 10 years.
Kamal added that the project is part of Renesas' total 10-megawatt (MW) solar installation programme, supporting the country's commitment to achieving net-zero carbon emissions by 2050 and increasing the share of renewable energy in the national energy mix to between 30 and 35 per cent by 2035.
Renesas Internal Manufacturing Sites global head Ooi Heng Ee stated that the company had implemented similar solar projects at its facilities in Kedah and Kuala Langat in collaboration with TNB. These initiatives reflect the company's commitment to ESG principles and sustainable manufacturing across its operations in Malaysia.
Ooi further mentioned that the company had previously completed the installation of rooftop solar panels across its manufacturing facilities, which are expected to reduce carbon dioxide emissions by about 3,264 tonnes annually. The solar panel car park project marks the next phase of the company's sustainability journey, and upon completion, it is expected to further reduce carbon dioxide emissions by 720 tonnes annually, equivalent to preserving more than 32,000 trees each year.