UOB Malaysia Helps To Transition Malaysia to cleaner energy

UOB Malaysia

UOB Malaysia helps contribute to the country’s transition to cleaner energy by supporting power plants with lower environmental impact

Kuala Lumpur, 15 April 2021 – On the back of Malaysia’s increasing electricity demand, UOB Malaysia is helping to contribute to the country’s transition to cleaner energy through its support of power plants with lower environmental impact. To increase the national power capacity mix, the Bank is committed to supporting development of projects that use efficient sources of energy, such as natural gas and renewables.

Power generation in the country is projected to grow by an average of 3.2 per cent annually to reach 47.8 gigawatts by the end of 2028[1]. The Klang Valley region accounts for the highest electricity demand in Peninsular Malaysia, and with its current supply deficit, the region relies heavily on the long-distance transmission of power from both the Northern and Southern regions in the Peninsular.

Ms Ng Wei Wei, Managing Director and Country Head of Wholesale Banking, UOB Malaysia, said, “With the central region seeing higher electricity consumption growth rates, there is a need to increase capacity through the construction of power plants that are more efficient and more sustainable. To this end, UOB Malaysia is committed to supporting projects that will help the country make the transition to natural gas and renewables.”

Ms Ng Wei Wei, Managing Director and Country Head of Wholesale Banking, UOB Malaysia

UOB Malaysia was a co-financier in a Commodity Murabahah Term Financing-i facility for the recently-announced 1,200 megawatt combined-cycle gas turbine power plant in Pulau Indah, Selangor. The project is a joint venture between Worldwide Holdings Berhad and Korea Electric Power Corporation. Upon completion in 2024, the power plant is expected to meet the demand in the Klang Valley region in a more sustainable manner. This is because a natural gas power plant has higher energy efficiency and emits 50 to 60 per cent less carbon dioxide per kilowatt-hour than a typical coal plant[2].   

Ms Ng said, “We are honoured to be part of the financing consortium for Selangor’s major power development plan that will generate more power for the residents in the central region of Peninsular Malaysia.”  

Solar power to lead the way in renewable energy capacity mix in Malaysia

Gas and thermal power sources are expected to continue making up a significant proportion of the national power generation mix over the next seven years[3]. Nonetheless, UOB Malaysia believes that the country will continue to increase renewable sources in its energy capacity mix to 20 per cent by 2025[4], particularly solar power.

This projection is underpinned by the recent announcement of new power plant constructions under the Large Scale Solar (LSS) 4 programme by the Energy Commission of Malaysia. Solarvest Holdings Berhad, an engineering, procurement, construction and commissioning (EPCC) partner in UOB Malaysia’s U-Solar programme[5], was one of the LSS4 successful bidders[6]. UOB Malaysia also supported two solar power plant projects – the Sinar Kamiri Power Plant located in Sungai Siput, Perak and the Kenyir Gunkul Power Plant located in Dungun, Terengganu – under the previous LSS programmes.

Ms Ng said, “Although gas and thermal power sources continue to power the country’s electricity demand substantially, the future looks bright for the construction of solar power plant projects. We are positive that the solar power plant projects under the LSS programmes, including that by Solarvest’s under its successful bid, will further accelerate Malaysia’s pace of achieving its renewable energy capacity target.

“Through our U-Solar programme and financing of the Sinar Kamiri and Kenyir Gunkul solar power plants, we aim to encourage greater nation-wide adoption of green technology. This is in line with our commitment to forging a sustainable future for better businesses, lives and livelihoods and communities as we contribute to the nation’s long-term economic, social and environmental well-being.”

For more information on U-Solar, please visit www.UOBgroup.com/U-Solar.

About UOB Malaysia

United Overseas Bank (Malaysia) Bhd (UOB Malaysia) is a subsidiary of Singapore-headquartered United Overseas Bank Limited (UOB) and has had a presence in Malaysia since 1951. UOB Malaysia offers an extensive range of both conventional and Islamic banking services through its branches, subsidiaries and associate companies: corporate and commercial lending, investment banking, treasury services, trade services, cash management, home loans, credit cards, wealth management and bancassurance products.

UOB is a leading bank in Asia with a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. UOB is rated among the world’s top banks: Aa1 by Moody’s Investors Service and AA- by both S&P Global Ratings and Fitch Ratings. In Malaysia, UOB Malaysia receives AAA/Stable/P1 financial institution rating from RAM Ratings. 

Over more than eight decades, generations of UOB employees have carried through the entrepreneurial spirit, the focus on long-term value creation and an unwavering commitment to do what is right for our customers and our colleagues.

We believe in being a responsible financial services provider and we are committed to making a difference in the lives of our stakeholders and in the communities in which we operate. Just as we are dedicated to helping our customers manage their finances wisely and to grow their businesses, UOB is steadfast in our support of social development, particularly in the areas of art, children and education. 

For further information, please visit www.uob.com.my.

[1] Source: Fitch Solutions’ Global Market Insights forecast, 19 March 2021

[2] Source: US Environmental Protection Agency Report 2018

[3] Source: Global Data, 16 May 2019

[4] Source: Ministry of Energy and Natural Resources Malaysia’s Electricity Supply Industry 2.0 programme launched in 2019

[5] U-Solar is Asia’s first solar industry ecosystem that brings together both industry players and consumers to power the development and adoption of renewable energy across Southeast Asia.

[6] Source: The Energy Commission of Malaysia announcement on 15 March 2021

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