Economy Minister Rafizi Ramli.
KUALA LUMPUR: Nuclear as an energy source is essential for Malaysia to achieve net zero by 2050 and is expected to be included in the 13th Malaysia Plan, says Economy Minister Rafizi Ramli.
“I can mention openly now, nuclear is on the table – because without nuclear and if we were to miss one or two (options), its quite difficult for Malaysia to achieve net zero by 2050,” he said during an industry dialogue session at the National OGSE Blueprint Forum 2024 here yesterday.
He stated that the decision on the possibility of the country utilising nuclear energy as one of the sources of energy in this country had been made at the National Energy Council level and endorsed by the Cabinet.
“And the responsibility has now been given to the Energy Transition and Water Transformation Ministry (Petra) and the Science, Technology and Innovation Ministry (Mosti) to ensure the framework of laws and regulations are built,” Rafizi said.
He added that among the advantages of nuclear energy is it is much cleaner and sustainable compared to other energy sources.
“Nuclear technology is much different from the ones in the past – which require a very large capacity. Now, there is a technology known as small modular reactor (SMR) which is smaller in size and safer and cheaper to operate.
“So, with SMR technology now available globally, the government has actually decided that we will investigate the feasibility of nuclear energy in Malaysia,” he said.
SMR can be considered as a “mini” nuclear power plant which is a compact, safer and flexible nuclear power plant designed to be easily produced, transported and scaled to provide reliable energy in various locations.
Rafizi explained that nuclear energy can be considered more cost-effective to operate because it doesn’t rely on feedstock like other energy sources for life expectancy.
He said similar to the energy production industry, moving forward with nuclear energy will begin with its regulators, which will be the Energy Commission.
“This is because there is a long list of international compliance that we have to meet even before we can embark on nuclear.
“And I think the ‘nitty-and-gritty’ of how the power sector will participate in nuclear, that will be decided and regulated most probably by the Energy Commission as well,” he said.
Separately, Rafizi commented on CIMB Group
Holdings Bhd’s decision to cease financing new upstream oil fields which were approved for development after 2021, effective Jan 1, 2025 in line with its decarbonisation target.
He stated that the government does not intervene in the decisions made by private banks, such as CIMB.
“The oil and gas industry in Malaysia is a strategic industry. So, even though some of the decisions made by private banks follow their own strategies, it is the government’s responsibility to ensure that there is sufficient funding – be it provided by the private sector or government financial institutions.
“As for the oil and gas sector, I will certainly sit down and discuss with the banks so that we can get information on how they want to deal with the challenging demand,” he said.
He said while the companies needed to show their green credentials, the government remains aware that the decision has to be balanced with the need to build the industry to ensure gas supply maintains and continues to grow.
“The responsibility of the Economy Ministry is to ensure that the oil and gas industry as the main industry in this country remains intact and that the ecosystem, including the financing ecosystem, continues to support the industry,” Rafizi added.
