The current Renewable Energy Certificate tariffs are presenting challenges to the growth of Malaysia’s green hydrogen industry, said Gentari, the clean energy solutions arm of Petroliam Nasional Bhd .
Wan M. Ikhwan pointed out that RECs come with tariffs that are slightly higher than standard electricity rates. “Gentari’s role is to provide green electrons through our renewable energy division. We are establishing solar systems in Malaysia to power electrolyzers for green hydrogen production. In certain areas, we are also exploring wind energy, although not within the Malaysian context,” Wan M. Ikhwan said.
RECs are tradable, market-based instruments generated for every 1MWh of renewable energy production. By purchasing RECs, companies can claim they have sourced renewable energy, even in areas without direct access to green energy.