The UAE and Malaysia have agreed to collaborate on the facilitation of providing Kuala Lumpur with a renewable energy capacity of 10 gigawatts by 2025, according to a Reuters report.
Malaysian Prime Minister Anwar Ibrahim said in a social media post on 6 October that the agreement was outlined by the National Investment Development Authority (MIDA) and the Abu Dhabi Future Energy Company PJSC (Masdar), adding that the value of the joint project is $8 billion.
Official Malaysian sources indicate that Kuala Lumpur is looking to have renewable energy account for 70 percent of its energy supply by 2050.
Currently, Malaysia secures 25 percent of its energy needs from renewable energy streams, as it requires a total of $135 billion to achieve its objective.
Prime Minister Anwar Ibrahim met with UAE President Sheikh Mohamed bin Zayed Al Nahyan (MbZ) in Abu Dhabi to discuss the details of the agreement and meet with representatives of major Emirati corporations.
After attending several meetings with UAE officials, Ibrahim affirmed that Kuala Lumpur and Abu Dhabi are set to bolster relations via an investment agreement between the UAE International Investors Council and MIDA.
Malaysia and the UAE have maintained close trade relations over the years as the two regional countries seek to enhance cooperation in various sectors, such as tourism and renewable energy.
Since the beginning of the energy crisis instigated by the imposition of western sanctions on Russia over its military operation in Ukraine, several countries have struggled to secure their energy needs due to notable price hikes, pushing many governments to rely on Gulf countries such as the UAE and Saudi Arabia.
The UAE has been expanding its energy market through cooperation with multiple partners on the world stage, giving no exclusive loyalty to one, much to the dismay of the US.
Last month, the UAE pledged $4.5 billion in clean energy investments to Africa, which would essentially “jumpstart a pipeline of bankable clean energy projects” across the continent.
This focus on clean energy is part of the UAE’s Net Zero by 2050 Strategic Initiative. The development of renewable energy sources has recently become a priority for Gulf states, including Saudi Arabia, which plans to source 50 percent of its energy requirements from renewables by 2030.
In June, the UAE signed an agreement with Egypt’s New and Renewable Energy Authority to obtain land for the construction of a 10-gigawatt (GW) capacity wind farm valued at $10 billion.
Source : TheCradle
