Greenplus Asia June 2020

VOLUME 7 | ISSUE 65 | JUNE 2020 | RM12.00
PP 18355/12/2013 (033744)
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FGV to boost returns
from renewable energy projects
......................................
3 Malaysian cities
paving ways to become smart and sustainable
......................................
Sustainability in
lighting industry
RIDING ON
RENEWABLES
ISSN 2298-6049
65
9 772298 604000

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Vol. 7 Issue 65 | June 2020

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Vol. 7 Issue 65 | June 2020
editor’s note
GREEN RECOVERY
INITIATIVES
It was not the anticipated 2020. It should be the year of triumph, where Malaysia can
stand tall and call itself a developed nation, populated by high-income society. By the
year 2019, Malaysia has succumbed to the fact that Vision 2020 was unachievable.
Towards the end of that year, a new challenge was emerging and it caught Malaysia
and the rest of the world by surprise. The dream year of 2020 turns out to be a
nightmare.
The new strain of corona virus — the COVID-19 — ran amok in the first quarter of
2020 and has the world scrambling for a solution to check this unknown deadly
pandemic. A series of stimulus packages were introduced to promote spending
hence keeping the economic activities moving. As the world economy was also
suffering from the wrath of the virus, the outlook for 2020 looks grim. A recession
is inevitable in 2020. The International Monetary Fund (IMF) said the world is facing
its worst downturn since the Great Depression as shuttered factories, quarantines
and national lockdowns cause economic output to collapse. In its World Economic
Outlook report, the IMF projected that the global economy would contract by 3% in
2020, an extraordinary reversal from early this year, when it forecast that the world
economy would outpace 2019 and grow by 3.3%.
Out of this pandemic, new approaches to business, managing the economy and even
the manner of undertaking the daily routines are taking shape. To recover from the
impact of COVID-19, companies are restrategising. Innovations, effectiveness and
efficiency are now top on the list of things to do to survive in the globalised corporate
world. The COVID-19 presents an excellent opportunity for governments to press
the reset button and reboot their perspective on the approaches and measures of
strengthening the economy. That the world has seen improvements in the air quality
and even water quality of their rivers clearly indicating that some of the current
economic activities are just not friendly enough to the environment.
The Royal Netherlands Meteorological Institute’s recent data obtained via satellite
showed an obvious drop in the average nitrogen dioxide concentrations over Europe
from 13 March to 13 April this year against the same period last year. Paris (France)
saw a dramatic drop of 54%, while Madrid (Spain) and Milan and Rome (Italy) saw
decreases of around 50%. In the case of Malaysia, readings of air quality sensors
owned by Petaling Jaya City Council showed a drop in pollutants released into the air
in Petaling district, where carbon monoxide reduced by 50% to 60%, while suspended
particulate matter tapered down by 20% to 30%. The MCO and suspension of some
economic activities have also resulted in cleaner rivers in certain parts of Malaysia.
The water of Sungai Gombak, Sungai Way and Sungai Kemunsing in the Klang Valley,
as well as Sungai Melaka in Melaka were reported to be clearer and cleaner.
One area which has shown that the green approach is the way to go in economic
stimulation is in the power generation segment. International Renewable Energy
Agency (IRENA) Director-General Francesco La Camera has pointed out that the
world has reached an important turning point in the energy transition. The cheapest
source of new electricity is in solar PV and onshore wind. Coal has lost its top spot.
The IRENA’s s Renewable Power Generation Costs in 2019 Report discovered that
renewable power is increasingly cheaper than any new electricity capacity based
on fossil fuels.
As the world continues its pursuit to break the spread of the COVID-19 pandemic
and finding its cure, it is clear that a green strategy is the way for a global recovery
strategy. The short-term policy action can be aligned with the medium and long-term
energy and climate goals with the use of renewables. As the IRENA director-general
puts it, renewables must be the backbone of national efforts to restart economies in
the wake of the COVID-19 outbreak. A reboot of the traditional system to stimulate
economic growth can contribute greatly towards a green recovery!
Fadzil Ghazali
Adviser
Dato’ Dr. Nadzri Yahaya
nadzri@theplus.my
Chief Executive Officer
Simon Wong
simon@theplus.my
Editor
Fadzil Ghazali
Journalists
Georgina Tan
Anis Shabirin
Adam Aiman Azhar
Columnists
Zaini Abdul Wahab
Kenny Hoo
Sabrina Akil
Nazery Khalid
Kavickumar Muruganathan
Senior Manager,
Business Development
Hasrul Said
Design
The Plus Creative Team
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publisher and editor. While every care is taken
to ensure the accuracy of the articles, the
publisher assumes no responsibility for effects
arising from them.

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Vol. 7 Issue 65 | June 2020
what’s inside
8-11
FGV to boost returns from
renewable energy projects
12-13
TNB subsidiary in
partnership with envision
digital to digitalise
operations of its
LSS project
16-17
3 Malaysian cities paving
ways to become smart and
sustainable cities
22-23
Terengganu loses its
natural heritage!

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Vol. 7 Issue 65 | June 2020
24-26
Renewables increasingly beat even
cheapest coal competitors on cost
28-30
IRENA, ESCAP step up joint efforts to
support Asia-Pacific’s crisis response
32-33
Renewables account for almost three
quarters of new capacity in 2019
34-36, 38
Sustainability in lighting industry

7
It’s not easy to fight the UNSEEN enemy
but we can make it super easy with
#stayathome
THANK YOU FOR ALL FRONTLINERS
YOU ARE OUR
TRUE HEROES

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Vol. 7 Issue 65 | June 2020
COVER STORY
FGVto
boost
returnsfrom
renewable
energy
projects

COVER STORY
9
The COVID-19 pandemic, which took the world
by surprise since late last year, has also placed
most companies in unchartered waters where
new strategies to stay afloat have to be formulated
and immediately deployed.
For FGV Holdings Berhad (FGxV), it is riding on renewable energy
projects as part of its recovery strategy from the COVID-19
pandemic.
Group Chief Executive Officer Dato’ Haris Fadzilah Hassan said the
waste-to-wealth initiative has always been an important element
for FGV’s business in view of the abundant resource derived from
its plantation and mill activities. These include producing biogas
fuels (gas, solid and liquid) to generate power.

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Vol. 7 Issue 65 | June 2020
COVER STORY
“This initiative can be enhanced further as part of the
Group’s recovery strategy post COVID-19. We are
reviewing the initiatives under the segment to come up
with a solid plan that could be executed immediately,” he
said in a statement released in Kuala Lumpur recently.
Haris Fadzilah said among the immediate projects that
FGV could carry out is the power generation business
through its biogas captures at its palm oil mills.
Biogas is utilised as fuel for electricity generation via biogas
engines to supply electricity to National Grid through
Feed-in-Tariff (FiT) mechanism governed by Sustainable
Energy Development Authority Malaysia. Biogas is also
used internally for rural electrification in Sabah generating
electricity to power-up home of settlers in Felda Sahabat,
Felda Cenderawasih and Felda Umas.
Malaysia’s Feed-in Tariff (FiT) system obliges Distribution
Licensees (DLs) to buy from Feed-in Approval Holders
(FIAHs) the electricity produced from renewable resources
(renewable energy) and sets the FiT rate. The DLs will
pay for renewable energy supplied to the electricity grid
for a specific duration. By guaranteeing access to the
grid and setting a favourable price per unit of renewable
energy, the FiT mechanism would ensure that renewable
energy becomes a viable
and sound long-term
investment for companies
industries and also for
individuals.
DLs are companies holding
the licence to distribute
electricity such as Tenaga
FGV Group Chief Executive
Officer Dato’ Haris Fadzilah
Hassan— thestar online
Nasional Berhad; while FIAHs could be an individual or
company who holds a feed-in approval certificate issued
by SEDA Malaysia. The holder is eligible to sell renewable
energy at the FiT rate which is a fixed premium rate
payable for each unit of renewable energy sold to DLs.
The FiT rate differs for different renewable resources and
installed capacities.
FGV’s Serting Hilir mill in Negeri Sembilan was the first
FIT project in Malaysia to achieve Commercial Operation
Date (COD) in 2006 followed by Tenggaroh, Maokil and
Nitar mills in Johor. Triang and Keratong 9 mills in Pahang
are the latest to supply to the National Grid this year.
Through Renewable Energy projects, FGV is also carrying
out cost optimisation initiatives across the Group in terms
of fuel savings at its mills and plants. For example, MSM

COVER STORY
11
Following the success of the first bio-compressed natural
gas (Bio-CNG) plant at Sungai Tengi Palm Oil Mill, in
Selangor, FGV is planning to set up Bio-CNG/Bio-LNG
plants at potentially 35 of its palm oil mill through external
investments, in addition to its FiT project, palm fibre oil
extraction plants, biogas and renewable energy utility
project in Sabah, which also involve external parties.
Haris Fadzilah said the initiative is also in line with Malaysia
Energy Supply Industry 2.0 (MESI 2.0) plan to have 20% in
RE in energy mix by 2025.
The Renewable Energy Division which is under FGV Palm
Industries Sdn Bhd consists of by-products, renewable
energy and zero investment projects relating to biomass
produced from palm oil mills.
As part of the ongoing effort to make the power industry
more efficient and competitive, Malaysia has embarked
upon a 10-year master plan known as MESI 2.0 to
reform the power industry. MESI 2.0 aims to liberalise
the generation to distribution components of the power
industry in Peninsular Malaysia as well as to better
promote the use of green energy in Malaysia.
Malaysia Holdings Berhad (an associate company of
FGV)’s plant in Tanjung Langsat in Johor could run using
shredded empty fruit bunches (EFB) supplied from the
Group’s mills in Johor and this would create annual RM60
million savings in electricity.
The reforms include new breed of Power Purchase
Agreements (PPAs); independent sourcing of fuel to
generate electricity; and third-party grid access.
FGV is also expecting to export palm kernel shells (PKS)
to Japan as biofuel which shipments are expected to be
within this year. PKS is widely used for biomass power
plants throughout Japan for electricity power in-line
with their government initiatives in promoting renewable
energy.
The introduction of Japanese government renewable
initiative to depend less on fossil fuel in 2012 has driven up
demand, with Japanese PKS imports nearly tripling since
2015, to 1.3 million tonnes in 2018, hence offering a great
opportunity for FGV to explore and penetrate Japanese
PKS market, ahead of competition from Indonesia.
“Energy transitions are
already underway in many
countries. These transitions
have become increasingly
affordable because of forwardlooking
policy frameworks,
ongoing innovations and
falling technology costs for
renewables”
FGV is also carrying out a joint-venture plan to build an
EFB pulp and paper plant, potentially in Kuantan, Pahang
which is expected to be completed in 2022/2023 that
would utilise between half a million to one million tonnes
of EFB annually.

12 Vol. 7 Issue 65 | June 2020
ENERGY
TNB SUBSIDIARY IN PARTNERSHIP
WITH ENVISION DIGITAL TO
digitalise
operations
of its LSS project
TNB Renewables Sdn Bhd (TRe), a
wholly-owned subsidiary of the national
utility company Tenaga Nasional
Berhad (TNB) has appointed Envision Digital
International Pte Ltd to deploy big data
analytics applications in its large scale solar
(LSS) farm in Sepang, Selangor in Malaysia to
improve energy productivity and operational
efficiency.
The 50 megawatts (MW) solar farm is one of the largest
in Malaysia with 238,140 solar panels generating more
than 110,000 megawatt-hour (MWh) of energy in its first
year of operation in 2019.
The project with Singapore-based Envision Digital will
involve the deployment of its cloud- based digital analytics
applications, including EnlightTM Solar, EnsightTM
Solar, and Forecaster. Powered by Envision Digital’s
AIoT (Artificial Intelligence of Things) operating system,
EnOSTM, the applications will strengthen TRe’s ability to
actively contribute to the growth and use of renewable
energy sources across the company’s portfolio of energy
assets.
EnsightTM Solar monitoring will enable TRe’s operations
team to have quick access to the farm’s real-time
operation status, thus improving the its operational and
maintenance efficiency.
The advanced analytics software, EnsightTM Solar, will
provide detailed insights into the solar farm’s generation
performance. Meanwhile, the built-in machine learning
and artificial intelligence (AI) enabled Forecaster software
will help provide accurate forecasts of weather conditions
and power output, to ensure that TNB manages grid
supply and demand effectively.
TRe Managing Director Mohd Yusrizal said the company
constantly seeks innovative technology solutions that
will help accelerate our growth in the renewable energy
sector.
“The solar farm in Sepang is our first large scale solar
project in Malaysia. By adopting cloud- based solutions,
we can monitor and analyse the solar farm’s performance
remotely and achieve better returns on investment.
“TRe is also committed in adopting innovative solutions
in building up our capability towards becoming a leading
RE asset developer and asset manager within Malaysia
and the region,” he said in a statement released in Kuala
Lumpur on 6th May 2020.
Envision Digital International President Sylvie Ouziel said
as Malaysia strives to achieve 20% renewable energy
capacity by 2025, projects such as this, which help
improve the productivity of existing renewable energy
assets through the application of AIoT technology are
vital.

ENERGY
13
“Wider adoption of AIoT in the renewable energy sector
can hopefully in time amplify the benefits of this. We are
delighted to strengthen our relationship with TRe on
this project and to be playing a role in building a more
sustainable energy sector and future for all Malaysians,”
she added.
Since the beginning of this project in March 2019, both
organizations begins to collaborate on multiple initiatives
revolving around new energy and digital transformation.
Eventually, TRe will build a digital renewable energy
platform leveraging Envision’s EnOS AloT Operating
System, to connect various renewables assets and
applications, such as biogas, biomass and mini hydro.
The platform will not only provide asset operation and
performance visibility to TRe, but also allow the integration
and synergized operation among various renewables
energies.
TRe was established in 2018 to grow the renewable
energy (RE) business for TNB. Since then, TRe has
grown its domestic RE installed capacity to 97MW and
developed capabilities to manage RE assets profitably.
From the total installed capacity, 65% of it is in solar, 17%
in biomass/biogas and the remaining in mini-hydro.
TRe focuses on securing RE projects through cost
optimisation and strengthening its asset management
capability, capitalising on its existing local assets. TRe
focuses on doing the right thing first in the development
of RE projects and creating values during the asset
management stage.
TNB’s core activities are in the generation, transmission,
and distribution of electricity. In addition to being the
nation’s primary electricity generation enterprise, TNB
also transmits and distributes electricity to about 9.8
million customers in Peninsular Malaysia, Sabah and
Federal Territory of Labuan.
Envision Digital is a global AIoT technology leader
headquartered in Singapore with over 500 employees
across ten offices in China, France, Norway, the
Netherlands, the United Kingdom and the United States.
As a major player in AIoT operating systems, Envision
Digital is growing an ecosystem of partners to enable
energy and digital transformation globally. − Source TNB

14 Vol. 7 Issue 65 63 | April June 2020
ENVIRONMENT

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Vol. 7 Issue 65 | June 2020
CITIES
Malaysian cities
paving ways to become
smart and sustainable
Petaling Jaya, Melaka and Seberang Perai have been
selected as global finalists in the One Planet City
Challenge (OPCC) competition organised by the
World Wide Fund for Nature (WWF).
A total of 250 cities from 53 countries representing 66%
of the global population participated in the 2019/2020
cycle. The biennial OPCC competition is to mobilise global
and local action among cities in the global transition
toward a climate-resilient, one-planet future.
WWF-Malaysia Executive Director/CEO Sophia Lim said
WWF-Malaysia is very proud that more cities are stepping
up to the sustainability challenge by implementing various
environmental initiatives.
“Apart from these three finalists, Shah Alam, Penang,
Sepang and Jasin also signed up for the competition.
We are very excited to see cities in Malaysia undertaking
innovative climate actions on delivering the 2015 Paris
Agreement on climate change,” she said in a statement
released on 4th May 2020.
Each of the three cities has its own compelling narrative
that propels them into the final round of the global
competition. Petaling Jaya is recognised for sustainability
grants and incentives provided to its residents.
Melaka has made serious efforts to revive Sungai Melaka
through their multi-million-ringgit river rehabilitation
project. Seberang Perai has expanded its recycling
facilities and waste management programmes to
maximise recycling rates.
“As the world continues to contain the spread of
coronavirus thus confining us to our homes, the way we
move and live our lives has radically changed. We can see
the impact of the Movement Control Order on our rivers,
such as Sungai Melaka and Sungai Pinang.
“Beyond the pandemic, it is important that cities around
the world follow a development path that focuses on
health and sustainability in their planning. Urban plans
should incorporate green spaces, building access to
water, health, and sanitation infrastructures. These
elements are important for the mental and physical health
of city residents during a pandemic,” added Lim.
As of now, more than half of Malaysia’s accredited cities
have taken part in OPCC or WWF’s sustainable cities
programme spanning 2014 to 2020. WWF-Malaysia
hopes to see more Malaysian cities join the challenge in
the coming years.
The three Malaysian national finalists will also now take
part in the OPCC’s ‘We Love Cities’ campaign, which will
be held later in the year. The campaign aims to inspire
and engage their respective citizens for support as well as
sharing ideas for improvement. Similarly, the national and
global winner will be announced in the second half of the
year 2020. - Source WWF Malaysia

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OPCC – How it works
OPCC Finalists 2020
The city decides to join.
Cities report relevant data on global standardized citydata
reporting platforms. WWF offers guidance.
Registration opens on 12 February and closes 10 July
2019.
Based on the data entered, cities are prescreened
and shortlisted.
WWF selects up to 3 finalist cities per country.
Finalists can participate in our renowned global public
engagement campaign, We Love Cities, in spring
2020.
An international jury of urban sustainability experts
selects national OPCC winners with the most
ambitious and inspiring commitments and actions,
based on reported data.
The jury selects one global OPCC winner.
The winners are celebrated in a global award
ceremony mid-2020.
All participating cities receive guidance from global
experts on big-win impact reductions in line with 1.5˚C.
The OPCC jury is consists of leading experts within the field of
urban sustainablity from around the globe. With extensive local
and regional knowledge jury members are uniquely qualified to
evaluate the contribution of participating cities in achieving the
goals set forth in the Paris Agreement.
Argentina
Buenos Aires, Chacabuco,
San Martin de los Andes
Canada
Vancouver
Colombia
Mantizales, Monteriá,
Villavicencio
Finland
Turku
Guatemala
Escuintla, Iztapa, San José
Iceland
Reykavik
Indonesia
Balikpappan, Banda Aceh,
Jakarta
Mexico
Hermosillo, Mérida, Mexico
City
Peru
Borja, Lima, Magdalena
US
Cleveland, Los Angeles, Park
City
State of Palestine
Abasan Al-Kabira
Sweden
Helsingborg, Uppsala, Växjö
Thailand
Hat Siao, Khonkaen, Patong
Côte d’Ivoire
Commune de Cocody
Brazil
Belo Horizonte, Fortaleza,
Rio de Janiero
Republic of Korea
Suwon City
UK
Greater London, Greater
Manchester, Bournemouth-
Christchurch-Poole
France
Paris
India
Kochi, Nagpur, Rajkot
Norway
Arendal, Baerum
Malaysia
Melaka, Petaling Jaya,
Sebarang Perai
South Africa
Cape Town, Durban,
KwaDukuza
New Zealand
Wellington City Council
Philippines
Batangas, Muntinlupa, Santa
Rosa
Ecuador
Municipio de Loja
Chile
Peñalolén, Santiago, Valdivia
Turkey
Denizli, Izmir
Vietnam
Dong Hoi City
WWF’s OPCC is:
●
●
●
●
●
A friendly competition to mobilize cities to deliver on the
Paris Agreement.
It aims to support and celebrate 100 cities with action plans
for keeping global average rise in temperature to below 1.5˚C.
OPCC is the largest and longest running competition of its
kind. More than 400 cities on 5 continents have participated
with at least one goal to reduce carbon emissions and
increase climate resiliency.
Participants have already raised ambitions in global reporting
initiatives by reporting more than 5,700 actions with a total
of 3.9Gt GHG emissions reduction potential by 2050.
The OPCC’s new, unique, and expert-verified methodology
for verifying emissions reductions lets participating cities
report emissions, goals and targets on standardized
reporting platforms.
●
●
●
●
Participants’ data is then assessed and compared to the
emission reduction trajectories recommended for their type
of city in order to limit global warming to 1.5˚C or below.
This process guides cities to the most impactful actions they
can take to cut emissions and align with 1.5˚C target.
Ultimately the goal is for cities to develop best practice and
to be more strategic, efficient and effective in their climate
mitigation and adaptation plans.
The OPCC works in collaboration with city networks such
as the Global Covenant of Mayors, Local Governments for
Sustainability (ICLEI), C40 Cities and Carbon Disclosure
Project (CDP).

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Vol. 7 Issue 65 | June 2020

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Vol. 7 Issue 65 | June 2020
Sustainable, affordable,
renewable and reliable energy
for Sarawak and beyond
Sarawak’s generation mix is predominantly
sustainable and affordable, renewable
hydropower, resulting in Sarawak having
the lowest tariffs in Malaysia and amongst
the lowest in the region.
Bakun Hydroelectric Plant
2,400 MW
Batang Ai Hydroelectric Plant
108 MW
Power to Grow

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Murum Hydroelectric Plant
944 MW
www.sarawakenergy.com.my

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Vol. 7 Issue 65 | June 2020
Terengganu Loses
ITS NATURAL
HERITAGE!
The Terengganu branch of the Malaysian
Nature Society (MNS) has expressed
its disappointment at a decision by the
Terengganu State Government to degazette
the Belara Forest Reserve.
Belara Forest Reserve, strategically located next to
Terengganu’s largest urban centre Kuala Terengganu,
is one of the state’s iconic lowland tropical rainforests.
This green lung sits in the district of Kuala Nerus and
covers 4,588 hectares of land. The forest is surrounded
by plantations and old growth orchards tended to by
villagers, producing a wide variety of valuable fruits.
MNS said these orchards provide a strong economic
foundation upon which the locals rely. These same
orchards and nearby plantations depend on the forest to
provide valuable ecosystem services such as clean water
supply for agricultural activities.
In addition, the forest provides major agricultural
pollinators which include birds, bats, insects such as
bees, butterflies to name only a few. Without these
naturally occuring pollinators, the agricultural practices
will collapse.
MNS said if this forest and its biodiversity were to
disappear, so too would the richness and economic
foundation of the surrounding region. Malaysia is one of
17 mega biodiversity countries in the world, and within
Malaysia, Terengganu is a state known for its natural
beauty and mesmerizing wildlife.
It noted that on a recent brief drive along the edge of
the Belara Forest Reserve in late May, MNS members
were thrilled to see a variety of forest birds including
Great Hornbills (Buceros bicornis), which are classified
as Vulnerable under the IUCN Red List of Threatened
Species. Families of Dusky Langurs (Trachypithecus
obscurus), classified as Near Threatened, swung
carelessly from tree to tree. Their presence on such a
short casual drive indicates the forest is healthy and rich
in wildlife and biodiversity. But the observers also saw
poachers exiting the forest reserve with trapped animals,
and came up against a newly built logging camp.
MNS said further investigation has revealed that the
Belara Forest Reserve has been degazetted, with most
of the original 4,588 hectares of land no longer under
any protection whatsoever. A federal government audit
report from 2017 confirms this beautiful forest will be
clear cut and replaced with oil palm plantations.

23
MNS Terengganu would like to hear from the state
government of Terengganu, what possible justification
there could be to quietly degazette most of the Belara
Forest Reserve? Given the fact that forests are a dwindling
resource and valuable provider of a wide variety of
ecosystem services, how can such a thing happen in this
day and age? How will this grave error be rectified?
“This green lung sits in the
district of Kuala Nerus and
covers 4,588 hectares of land.
The forest is surrounded by
plantations and old growth
orchards tended to by
villagers, producing a wide
variety of valuable fruits.”
MNS said Terengganu has a major role to play in
protecting what little healthy forests Malaysia has left
as tropical rainforests are known to provide a host of
valuable services that include regulating climate and air
quality, preventing soil erosion, storing of carbon, flood
prevention and agricultural support to name a few.
Scientific America, in an article on the Forest Research
Institute of Malaysia (FRIM), mentioned that once a
forest is lost, it ‘could take up to 1,000 years to get the
majority of the diversity of the plant species back’. Such
irreversible damage with such a dwindling and valuable
resource such as our forests must not be allowed to
happen. In general, the oil palm industry in Malaysia is
committed to increasing production without the further
loss of any natural forest. And with a federal commitment
to maintain at least 50% forest cover in the country, we
cannot allow any further forest destruction which brings
irreversible and permanent impacts to the environment.
MNS believes in the sustainable use of our forest
resources. In the past we have commended the state
of Terengganu for its efforts in establishing state parks
at Tasik Kenyir and Setiu, and we continue to work with
the state to support these wonderful parks. Sustainable
logging practices in other forest reserves in Terengganu
which meet strict Malaysian Timber Certification Council’s
rules with oversight from our Forestry Department
have long been the practice. In addition, the Ministry
of Plantation Industries and Commodities (MPIC) has
pledged zero deforestation palm oil as a means to be in
compliance with the Roundtable on Sustainable Palm Oil
(RSPO). MNS Terengganu hopes that the state will look
seriously at the unjustifiable degazettement of the Belara
Forest Reserve and put an end to the permanent loss of
our biodiversity.
It noted that forests play a crucial role in the fight against
climate change, with trees able to absorb one third of
greenhouse gas emissions produced globally. Malaysia is
currently 6th in the world for annual loss of forest cover.
MNS said forest clearing will result in a drastic increase
in human-wildlife conflict as the animals from the forest
have nowhere to go. “Have we forgotten that in the 1990’s
large-scale deforestation to establish oil palm plantations
displaced wildlife which indirectly led to the deadly Nipah
Virus outbreak in Malaysia?” asked MNS.

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Vol. 7 Issue 65 | June 2020
Electricity generation from solar
PV and onshore wind is fast
taking over the role of coal in
the power generation segment.
International Renewable Energy Agency
(IRENA) Director-General Francesco
La Camera said renewable energy is
increasingly the cheapest source of new
electricity, offering tremendous potential
to stimulate the global economy and get
people back to work.
“We have reached an important turning
point in the energy transition. The case
for new and much of the existing coal
power generation, is both environmentally
and economically unjustifiable,” he said in
statement released in Abu Dhabi recently.
Renewables
increasingly
beat even cheapest
coal competitors
on cost

25
He pointed out that
renewable investments
are stable, costeffective
and attractive
offering consistent and
predictable returns while
delivering benefits to the
wider economy.
According to IRENA’s
Renewable Power
Generation Costs in
IRENA Director-General
Francesco La Camera
2019 Report, renewable power is increasingly cheaper
than any new electricity capacity based on fossil fuels.
The report finds that more than half of the renewable
capacity added in 2019 achieved lower power costs than
the cheapest new coal plants.
It highlights that new renewable power generation
projects now increasingly undercut existing coal-fired
plants. On average, new solar photovoltaic (PV) and
onshore wind power cost less than keeping many existing
coal plants in operation, and auction results show this
“Replacing the costliest
500 GW of coal with
solar PV and onshore
wind next year would cut
power system costs by up
to USD 23 billion every
year and reduce annual
emissions by around
1.8 gigatons (Gt) of
carbon dioxide (CO2),
equivalent to 5% of total
global CO2 emissions
in 2019.”
trend accelerating – reinforcing the case to phase-out
coal entirely. Next year, up to 1 200 gigawatts (GW) of
existing coal capacity could cost more to operate than
the cost of new utility-scale solar PV, the report shows.
Replacing the costliest 500 GW of coal with solar PV and
onshore wind next year would cut power system costs
by up to USD 23 billion every year and reduce annual
emissions by around 1.8 gigatons (Gt) of carbon dioxide
(CO2), equivalent to 5% of total global CO2 emissions in
2019. It would also yield an investment stimulus of USD
940 billion, which is equal to around 1% of global GDP.
“A global recovery strategy must be a green strategy.
Renewables offer a way to align short-term policy action
with medium- and long-term energy and climate goals.
Renewables must be the backbone of national efforts to
restart economies in the wake of the COVID-19 outbreak.
With the right policies in place, falling renewable power
costs, can shift markets and contribute greatly towards a
green recovery,” La Camera added.

26 Vol. 7 Issue 65 63 | April June 2020
ENERGY
Renewable electricity costs have fallen sharply over
the past decade, driven by improving technologies,
economies of scale, increasingly competitive supply
chains and growing developer experience. Since 2010,
utility-scale solar PV power has shown the sharpest cost
decline at 82%, followed by concentrating solar power
(CSP) at 47%, onshore wind at 39% and offshore wind at
29%.
Costs for solar and wind power technologies also
continued to fall year-on-year. Electricity costs from utilityscale
solar PV fell 13% in 2019, reaching a global average of
6.8 cents (USD 0.068) per kilowatt-hour (kWh). Onshore
and offshore wind both declined about 9%, reaching USD
0.053/kWh and USD 0.115/kWh, respectively.
Recent auctions and power purchase agreements (PPAs)
show the downward trend continuing for new projects
are commissioned in 2020 and beyond. Solar PV prices
based on competitive procurement could average USD
0.039/kWh for projects commissioned in 2021, down 42%
compared to 2019 and more than one-fifth less than the
cheapest fossil-fuel competitor namely coal-fired plants.
Record-low auction prices for solar PV in Abu Dhabi and
Dubai (UAE), Chile, Ethiopia, Mexico, Peru and Saudi
Arabia confirm that values as low as USD 0.03/kWh are
already possible.
For the first time, IRENA’s annual report also looks at
investment value in relation to falling generation costs.
The same amount of money invested in renewable power
today produces more new capacity than it would have
a decade ago. In 2019, twice as much renewable power
generation capacity was commissioned than in 2010 but
required only 18% more investment.
IRENA is the lead intergovernmental agency for the global
energy transformation that supports countries in their
transition to a sustainable energy future, and serves as the
principal platform for international co-operation, a centre
of excellence, and a repository of policy, technology,
resource and financial knowledge on renewable energy.
With 161 Members (160 States and the European Union)
and 22 additional countries in the accession process
and actively engaged, IRENA promotes the widespread
adoption and sustainable use of all forms of renewable
energy in the pursuit of sustainable development, energy
access, energy security and low-carbon economic growth
and prosperity. − Source IRENA
“...utility-scale solar PV
power has shown the
sharpest cost decline
at 82%, followed by
concentrating solar power
(CSP) at 47%, onshore
wind at 39% and offshore
wind at 29%.”

27

28
Vol. 7 Issue 65 | June 2020
Abu Dhabi — The United Nations Economic
and Social Commission for Asia and the Pacific
(ESCAP) and the International Renewable Energy
Agency (IRENA) will work together to improve access to
sustainable energy, bolstering the Asia-Pacific region’s
response to the COVID-19 pandemic.
The two organisations will offer recommendations to governments in
the region in positioning the energy transition as an integral part of the
immediate response to the crisis and medium to long-term recovery
efforts.
Asia-Pacific, home to half of the world’s population, is largely dependent
on fossil fuels. Diesel, for instance, fuels the majority of the region’s offgrid
electricity needs.
IRENA, ESCAP step
up joint efforts to
support Asia-Pacific’s
crisis response

29
“...200 million people in the Asia
Pacific live without electricity
and 1.2 billion people without
access to clean cooking fuel. Joint
efforts will focus on developing
sustainable energy policies that
are closely integrated with health
and industrial development
policies to bolster recovery efforts
and rebuild economies.”
According to ESCAP, 200 million people in the Asia Pacific
live without electricity and 1.2 billion people without
access to clean cooking fuel. Joint efforts will focus on
developing sustainable energy policies that are closely
integrated with health and industrial development policies
to bolster recovery efforts and rebuild economies.
United Nations Under-Secretary-General and ESCAP
Executive Secretary, Armida Salsiah Alisjahbana, said the
pandemic is an opportunity for countries in Asia Pacific
to rethink their economic growth path that has come at a
heavy cost to the people and planet.
“To bring about a fundamental shift for the energy
transition, we need to adopt the motto of ‘no more
business as usual’ for all stakeholders. Policymakers
should not lose sight of the looming climate crisis, but
rather design economic stimulus packages with social
inclusion and environmental sustainability built into every
decision in particular sustainable energy development,”
she said in a statement released on 6th May 2020.
IRENA Director-General Francesco La Camera said the
current unprecedented times called for decisive and
cooperative action among the international community to
save lives and support livelihoods all over the world.
“The Asia-Pacific region faces unique energy challenges
that undermine the ability of governments to respond
to this crisis and build economic resilience. Renewables
can underpin these efforts and therefore can play an
instrumental role in both the response and the recovery,”
he added.
With national budgets strained by immediate COVID-19
needs, short to medium-term energy access investment
may represent less of a priority for governments.
However, underinvestment in this area could severely
impact the capacity of rural health centres to support
front-line health workers and provide essential services
to COVID-19 patients.
When a vaccine does become available, the provision
of cold storage and refrigerated transport across large
areas will be critical. Decentralized renewable energy
technologies such as solar will be key for large-scale
immunization efforts in developing countries.

30
Vol. 7 Issue 65 | June 2020
Furthermore, slow progress in mainstreaming clean
cooking solutions may expose millions of people to the
dangerous combination of particulates and COVID-19.
Scientists are already investigating links between air
pollution and higher levels of coronavirus mortality,
with preliminary results showing a probable correlation
between the two.
Renewables can be deployed rapidly and are therefore
well-placed to support immediate crisis response efforts
including electrification of public health value chains. In
the medium to long-term, renewables-based energy
systems can also be an engine of sustainable growth.
Renewable energy costs in many parts of the world now
outcompete traditional energy sources, presenting cost
saving opportunities for governments and consumers
while boosting energy security, building energy
independence and supporting climate-related nationally
determined contributions.
According to IRENA’s recently launched Global
Renewables Outlook report, renewables can supply more
than half of all power needs in Southeast Asia alone by
2030, boosting the regional economy by more than 4.4%
and growing jobs by close to 50% in the process.
IRENA is the lead intergovernmental agency for the
energy transformation that supports countries in their
transition to a sustainable energy future, and serves as the
principal platform for international cooperation, a centre
of excellence, and a repository of policy, technology,
resource and financial knowledge on renewable energy.
With 161 Members (160 States and the European Union)
and 22 additional countries in the accession process
and actively engaged, IRENA promotes the widespread
adoption and sustainable use of all forms of renewable
energy in the pursuit of sustainable development, energy
access, energy security and low-carbon economic growth
and prosperity.
ESCAP serves as the United Nations’ regional hub
promoting cooperation among countries to achieve
inclusive and sustainable development. The largest
regional intergovernmental platform with 53 Member
States and nine Associate Members, ESCAP has emerged
as a strong regional think-tank offering countries sound
analytical products that shed insight into the evolving
economic, social and environmental dynamics of the
region. − Source IRENA
In a recent COVID-19 policy report for Asia and the Pacific,
ESCAP identified renewable energy as one of the main
sectors to include in stimulus packages.
During the 10th IRENA Assembly last January, ESCAP and
IRENA signed a Memorandum of Understanding to work
together to increase the uptake of renewable energy in
the Asia-Pacific region, support the implementation of
the Paris Agreement and contribute to the achievement
of the Seventh Sustainable Development Goal (SDG7) by
2030.

31

32
Vol. 7 Issue 65 | June 2020
Renewable
energy
CAN SUPPORT RESILIENT
AND EQUITABLE RECOVERY
Abu Dhabi — Advancing renewables-based
energy transformation is an opportunity to meet
international climate goals while boosting economic
growth, creating millions of jobs and improving human
welfare by 2050, finds the first Global Renewables Outlook
released by the International Renewable Energy Agency
(IRENA) in April 2020.
While a pathway to deeper decarbonisation requires total energy
investment up to USD 130 trillion, the socio-economic gains of such an
investment would be massive, the Outlook reveals. Transforming the
energy system could boost cumulative global GDP gains above businessas-usual
by USD 98 trillion between now and 2050. It would nearly
quadruple renewable energy jobs to 42 million, expand employment in
energy efficiency to 21 million and add 15 million in system flexibility.

33
IRENA’s Director-General Francesco La Camera said:
“Governments are facing a difficult task of bringing
the health emergency under control while introducing
major stimulus and recovery measures. The crisis has
exposed deeply embedded vulnerabilities of the current
system. IRENA’s Outlook shows the ways to build more
sustainable, equitable and resilient economies by aligning
short-term recovery efforts with the medium-and longterm
objectives of the Paris Agreement and the UN
Sustainable Development Agenda.”
“By accelerating renewables and making the energy
transition an integral part of the wider recovery,
governments can achieve multiple economic and social
objectives in the pursuit of a resilient future that leaves
nobody behind.”
The Global Renewables Outlook examines building blocks
of an energy system along with investment strategies
and policy frameworks needed to manage the transition.
It explores ways to cut global CO2 emissions by at least
70 per cent by 2050. Furthermore, a new perspective
on deeper decarbonisation shows a path towards netzero
and zero emissions. Building on five technology
pillars, particularly green hydrogen and extended enduse
electrification could help replace fossil-fuels and slash
emissions in heavy industry and hard-to-decarbonise
sectors.
Low-carbon investment would significantly pay off,
the Outlook shows, with savings eight times more
than costs when accounting for reduced health and
environmental externalities. A climate-safe path would
require cumulative energy investments of USD 110 trillion
by 2050 but achieving full carbon neutrality would add
another USD 20 trillion.
The Outlook also looked at energy and socio-economic
transition paths in 10 regions worldwide. Despite varied
paths, all regions are expected to see higher shares of
renewable energy use, with Southeast Asia, Latin America,
the European Union and Sub-Saharan Africa poised to
reach 70-80 per cent shares in their total energy mixes
by 2050. Similarly, electrification of end uses like heat
and transport would rise everywhere, exceeding 50 per
cent in East Asia, North America and much of Europe. All
regions would also significantly increase their welfare and
witness net job gains in the energy sector despite losses
in fossil fuels. However, economy-wide, regional job gains
are distributed unevenly. While regional GDP growth
would show considerable variation, most regions could
expect gains.
Raising regional and country-level ambitions will be crucial
to meet interlinked energy and climate objectives and
harvest socio-economic welfare. Stronger coordination
on international, regional and domestic levels will be
equally important, the Outlook concludes, with financial
support being directed where needed including to the
most vulnerable countries and communities. As a partner
of the Climate Investment Platform, launched to drive
clean energy uptake and mobilise clean investment,
IRENA will advance collaborative action targeted to
help countries create enabling conditions and unlock
renewable investment.
IRENA is the lead intergovernmental agency for the
energy transformation that supports countries in their
transition to a sustainable energy future, and serves as the
principal platform for international co-operation, a centre
of excellence, and a repository of policy, technology,
resource and financial knowledge on renewable energy.
− Source IRENA

34
Vol. 7 Issue 65 | June 2020
SUSTAINABILITY IN
LIGHTING
INDUSTRY
Signify ASEAN (formerly known as Philips Lighting) CEO
Alok Ghose talks to GreenPlus Asia on Malaysia’s lighting
industry, Internet of Things (IoT) and sustainability.
Signify ASEAN CEO’s,
Alok Ghose
— thepeak.com.my
1. As a key player in the lighting industry, how
would you describe the sustainability trend
within the industry in Malaysia?
Sustainability is a hot topic for many companies
to discuss as the market is shifting to leverage on
environmental and social innovation to drive business
and brand value. According to its inaugural report on
Financing a Sustainable Future in Asia, Refinitiv, a global
provider of financial market data and infrastructure,
noted that a clear gap existed between intention and
action in the case of Malaysian companies, with a high
portion of them having policies on emissions, waste
management, and water efficiency, than those with
actual targets for improvement. Many industries are
looking towards greener initiatives as Asia will account
for 50% of the additional worldwide energy demands
over the next fifteen years.
Signify has always been about sustainability, and we
aim to reflect our efforts and our purpose in unlocking
the extraordinary potential of light for brighter lives
and a better world. Signify has made many leaps
through recent years to bring sustainable LED-based
lighting internationally and locally. The company has
achieved the status of Industry Leader in the Electrical
Components and Equipment category of the 2019 Dow
Jones Sustainability Index (DJSI) and this is the third
year in a row that Signify has been named Industry
Leader and the third year it has been included since it
became an independent company. Our circular lighting
ethos along with the Brighter Lives, Better World
philosophy ensures that Signify continues to impact
lives positively with lighting that is cost-efficient, durable
and sustainable. Our recent introduction of connected
propositions including solar portfolio is a testament. In
the future, we can see that energy adequacy would be
jeopardised by the limitations of vital resources, and
we are championing the cause of sustainable lighting
as leading the way forward.

35
2. Home of the ASEAN arm for Signify, what are
amongst the sustainable efforts taken locally
and how do our efforts contribute globally to the
carbon neutral goal?
Signify leverages on the understanding that to be
green, brands have to have a bigger goal in mind.
Asia is set to lead global economic growth in the
coming decade and the region’s companies will play
a big role in spearheading sustainable initiatives
and development. Signify aims to uphold a circular
economy where its whole business utilises sustainable
practices from its supply chain to its consumer
products. The company is looking to phase out plastic
packaging from its consumer-related packaging by
2021, in understanding that each year, eight million
tons of plastic end up in the ocean, killing one million
marine birds and threatening 700 species of marine life
with extinction. Plastic pollution has become one of the
most pressing environmental issues and consumers
are increasingly critical of the packaging of products
that they buy. Signify understands that what profits
the planets will help push forward brand value and that
every brand should have a higher purpose to appeal to
an increasingly environmentally-conscious generation.
3. Looking into sustainable technology, what are
Signify’s outlook on the industries and sectors it
can target this year?
Sustainable lighting for Signify is also a matter of
relying on clean as well as renewable energy. Following
our principles of Brighter Lives, Better World, Signify
believes that sustainability extends beyond lighting and
encompasses the principles of giving back, providing
better lighting solutions and opportunities of a circular
economy with lighting for all kinds of businesses. The
circular economy lighting refers to using resources
more effectively by creating rather than wasting, using
rather than owning, and possibly reusing resources
rather than disposing of them.
Lighting is ubiquitous in our everyday lives, and it can
be implemented in many industries, offices, homes and
retail spaces. Signify focuses on various efforts which
includes B2B and B2C, and with different products
in the portfolio, it can penetrate different parts of
the market and offer different solutions according
to the industries. For example, office spaces is one
avenue Signify is able to explore the Interact platform
integration through its lighting systems to provide
seamless connectivity and insights that transform
business operations and customer experiences.
Trulifi is another technological component from the
lighting giant which allows for high speed connectivity
through lights and ensures a stable, secure and reliable
connection which will greatly benefit industries such as
healthcare, schools, banking and government sectors
that rely on steady, fast and secure connectivity to
conduct their day-to-day operations
4. With digitalisation being the hot topic, can you
explain a little on Signify’s involvement with the
Internet of Things (IoT) technology and how
does this help make business practices more
sustainable?
Digitilisation is occurring rapidly across businesses,
with technologies and cloud platforms created
to assist businesses make their practices more
sustainable. Signify’s Interact IoT platform offers
seamless connectivity for businesses through its
software applications aimed towards different verticals
such as Interact Office, Interact Landmark, InteractÂ
Retail, Interact Sports and Interact Industry. Interact
is an intelligent open, scalable IoT platform that uses
connected LED lighting to authenticate people and
devices, import, store and manage IoT data, automate
lighting and operational actions, and get real-time
predictive analytics and insights. Interact is able to add
value through embedded sensor networks to deliver
insights which benefits customers and businesses.

36
Vol. 7 Issue 65 | June 2020
5. Positioning the company as a thought leader,
what can Signify do to help SMEs become more
sustainable?
Signify’s portfolio contains Interact Pro which focuses
on SMEs as many of these companies often run at a
need for better cost-efficiency. The Interact Pro app
allows for a fast set up by installers and personal
control for employees as it works seamlessly with
Interact Ready LED luminaires, lamps and sensors from
Philips to create a connected lighting infrastructure
that offers installers a secure transition to connected
lighting. The platform allows employers to pinpoint
spaces which helps the companies determine a next
sustainable course of action e.g: setting the lights to
automatically switch off in an unoccupied meeting
room during lunch and during seasonal low usage of
meeting rooms based on trends captured from the
analytics. Energy usage is mindful and sustainable, and
through the data points collected, Interact Pro allows
employees to have full autonomy and preference
of their own lighting through the app, which boosts
morale as the technology supports desired business
outcomes through optimized and personalized light
levels to meet employee preference, or task, safety
and security requirements.
6. Connected lighting and smart homes are now
slowly being adopted in urban areas of Malaysia,
how can these technologies contribute to
sustainable practices?
Signify also has a range of LED lighting and luminaires
under the Philips Lighting brand which offers LED bulbs
that help lower energy consumption and use up to
90% less energy than traditional sources. For this year,
Signify will be launching a new range of connected
light bulbs called WiZ Connected which allows users
full control of their lights through WiFi, mobile data
networks, the infrared remote or existing switches.
7. Development is heavy in urban cities, leaving
rural areas a step behind where technology is
concerned, despite it covering more surface area
in the country compared to urban cities. Does
Signify see an opportunity to help develop less
commercial areas? Why?
Sustainability initiatives leave opportunities for
businesses to be socially impactful and for Signify
through our Brighter Lives, Better World philosophy,
we aim to do the same. Regionally, we have done
an outreach to Romang Tanggaya, a village in South
Sulawesi to provide solar lighting for its villagers that
enables hassle-free installation and no grid cables. The
Kampung Terang Hemat Energi initiative went on to
light up 8 other villages in South Sulawesi where 300
new light points have been created to light up public
facilities in off-grid places. Signify believes that ight is a
necessity for all and empowers people to perform and
live at their best.
The focus on sustainability in property companies
has also been evident in Asia, with an increasing
number of Asian property companies included in the
global sustainability benchmarks which predicts a
global growth of sustainable and smart property in
the market. In the local context, seamless connection
is an asset towards a purchasers consideration. For
example, a smart home will utilise cost-efficiency
through the lessening of electricity consumption. In
homes, connected lighting will be able to generate
data analysis through pinpointing energy levels and
activity in a household. From a B2C standpoint, Philips
Hue Wireless Lighting is positioned as a connected
lighting system to schedule lighting times according to
the Circadian rhythm, and provide personalisation for
home ambiance. Besides their advanced connectivity
portfolio.

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38
Vol. 7 Issue 65 | June 2020
8. The large energy consumed by big corporations
to sustain their day to day operations is one of
the causes of high carbon emissions. How can
Signify help minimise this issue?
Signify has made a commitment to be carbon-neutral
by 2020 through saving energy in factories and
offices, optimizing our logistics and supply chain, and
reducing business travel. At the end of 2019 we had
already reduced our footprint by 45% and increased
our use of renewables globally to 94%. We aim to be
the industry leader in Malaysia through external and
internal initiatives. For our industrial operations we look
to invest in energy efficiency projects, carry out energy
savings walkthroughs and third party energy scans with
our energy providers, help energy intensive operations
to reduce energy consumption and reduce the use of
substances that have a high global warming potential.
Supply chain plays an important role as well where
efficiency equates to energy savings. Internally, we use
intelligent systems to regulate lighting and heating in
our offices and use our spaces more efficiently which
enables sustainable working models making sure
our employees can work from any location and have
the tools needed for virtual working with colleagues
around the globe without the need to travel.
10. Renewable energy and horticulture are rising in
popularity to create sustainable resources for
cities and communities. Does Signify have any
involvement in these areas and if so, what can
we expect from the company?
Consumers are becoming more environmentallyconscious
these days and are demanding that brands
echo the sentiment. Due to the lack of space, city
farming is growing in popularity and it is made possible
through the usage of lights. LED lighting is able to
help optimise growth for sustainable crop cultivation.
Signify aims to illuminate the power of light through
lighting recipes to increase profit for the grower.
However, this initiative is still a work in progress in
Malaysia and we look forward to expanding our LED
lighting parameters.
9. Incompetent waste management can lead to
high levels of pollution. What is circular lighting
and how does it help maintain a sustainable
corporate environment?
Circular lighting enables our customers to minimise
waste and create instant savings. Through the offering
of lighting as a service (LaaS), users will be able to buy
the light and towards the end of their lifespan, the
luminaires can be returned to us for reuse or recycling.
This ensures a sustainable solution for businesses and
ensures that waste is properly managed along with
lowering the cost of production.

39

SAVE
40 Vol. 7 Issue 65 | June 2020
YOUR
ELECTRICITY
BILLS
GENERATE YOUR OWN
ELECTRICITY WITH
SOLAR PHOTOVOLTAIC (PV)
Do your part to save the environment
www.seda.gov.my/reportal/nem

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42 Vol. 7 Issue 65 | June 2020