09-06-2025
Sabah ideal for renewable energy investors
Published on: Monday, June 09, 2025
Published on: Mon, Jun 09, 2025
By: Jonathan Nicholas Text Size: Ranita (right) and Saiful (second right) with panelist Head of ESG/Sustainability at MARC Solutions Sdn Bhd, Leslie Jong Vui Min (second left). Kota Kinabalu: Sabah is a viable destination for renewable energy investment, with the potential to leverage the debt capital markets to finance major green infrastructure projects. Speaking during the Fireside Chat: Opening Doors to Renewable Energy Projects Through the Debt Capital Markets, recently, Maybank's Head of ESG Strategy and Solutions, Ranita Abdullah, said the state has already demonstrated its ability to attract green financing.
Advertisement 'There's historical precedent and market appetite. Sabah is positioned to scale up its renewable portfolio, especially in solar and hydro, with appropriate financial structuring,' she said, adding that Maybank has mobilized RM160 billion in sustainable finance since 2021. She said, debt capital markets are expected to play a significant role in financing the next wave of renewable energy projects. 'Green sukuk and bonds offer long-term fixed-rate structures and access to a broader investor base. Financial institutions are more than ready. 'What matters is project quality. We assess off-take risk, regulatory certainty, and long-term viability,' Ranita said.
Advertisement Director of Strategic Planning at the Sustainable Energy Development Authority (SEDA) Saiful Hakim Abdul Rahman said in Sabah, connectivity remains a major constraint. 'Sabah's resources are largely in remote areas. The challenge lies in grid access and infrastructure. A green grid will improve transmission capacity and integrate distributed renewable sources. 'Sabah has higher renewable resource diversity compared to Peninsular Malaysia, including potential in hydro, bioenergy, geothermal, and ocean energy. 'However, the state has underperformed in bioenergy uptake, due largely to feedstock inconsistency and scale challenges. 'Most bioenergy projects require long-term feedstock supply at fixed costs. Without vertical integration, this is difficult to secure,' he said. It was highlighted that solar energy has become the preferred option for Sabah due to its scalability, declining costs, and shorter development time. Compared to hydro or bioenergy, which often require significant lead time, environmental assessments, and infrastructure buildout, solar installations can be deployed more rapidly and are less site-constrained. Sabah's high solar irradiance also supports consistent generation potential, making it attractive for investors seeking predictable returns. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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