July 28, 2021

Renewable energy and clean energy will characterize the energy sector in the future

Renewable energy is the latest trend gracing the energy industry globally. Various nations are structuring policies, facilities and appropriating funds to support this transition. The president of the Petroliam Nasional Bhd (Petronas) and the CEO of the entity, Tengku Muhammad Taufik Tengku Aziz, outlined how Malaysia’s Fortune 500 company is bracing itself for this development. He explained that the entity has three decades to develop the utilities supporting renewable energy since it will be the new energy system. The drop in the prices of oil last year demonstrated how things could change if all strategies were designed to facilitate the dependence on renewables.

2020 witnessed the oil companies record losses after the impact of the coronavirus pandemic. Petronas is among the companies that suffered losses, with the projected profits dipping hugely through the second quarter. Tengku Aziz stated oil and gas will still characterize the energy mix until all the mechanisms supporting the transition to clean energy are activated. This concept implies that oil and gas companies should start divesting the capital from their operations and shift it to renewable and clean energy projects. Such a strategy will help the utilities to remain in the hearts of the consumers who have acquired this new taste.

Moreover, Malaysia will desire to switch to electric vehicles to reduce the emissions that come from internal combustion engine cars. The refill stations can start thinking of developing electric vehicle charging systems to continue serving the customers. Nonetheless, the oil 2ill be crucial in the petrochemical industries which manufacture petroleum products. Tengku Muhammad Taufik believes that this opportunity will save Petronas from becoming irrelevant in the future. However, he explained that they must think of a plausible way to invest in clean energy without killing the company. For instance, the M+ investment they made as a company in India is operating excellently, a trend that they would love to witness with Malaysian utilities. M+ project has installed solar rooftops in India, gaining over 800 large-scale customers.

Currently, Petronas is venturing into solar power, which is accessible in unlimited quantities. Tengku Muhammad Taufik stated the other technology that they can maximize is battery development since not many nations have developed in this area. However, this technology is expensive to explore, although it has considerable returns compared to conventional gas and oil services. The exploration of this technology must also consider the amendment of policies to support it and analyze if the banking system will finance the concept. Another crucial factor is how the private sector will join in the race to clean energy. The private sector’s willingness to support the switch to clean energy will ensure that the country moves forward into this technology efficiently.