Serba Dinamik Annual Report 2019

108 2019 ANNUAL REPORT INDUSTRY IMPACT ON OUR BUSINESS SERBA DINAMIK HOLDINGS BERHAD Moreover, according to the mid-term review of 11th Malaysia Plan, the government is targeting to provide electricity supply to an additional 41,160 houses to achieve 99% electricity coverage in rural area by 2020. Liberalisation of power industry as well as the government’s initiatives to increase electricity coveragewill likely enhance development of the industry and augurs well with operators providing maintenance services to power generation plants. RENEWABLE ENERGY SECTOR IN MALAYSIA In Malaysia, our presence in the power industry is mainly through our small hydropower plants as well as a biogas power plant. The renewable energy ("RE") sector in Malaysia has seen development in recent years with government targeting to achieve renewable energy mix of 23% for Peninsular Malaysia and 20% for the whole of Malaysia by 2025. The current operational and committed renewable energy installed capacity stood at 4,080 MW, an additional 3,758 MW of installed capacity is required to meet the 20% renewable energy mix target. In addition, approximately 58% or 2,172 MWof the additional 3,758 MWof RE installed capacity is forecasted to be solar energy. In Peninsular Malaysia, the RE capacity is projected to increase from 9% in 2020 to 23% in 2030, in tandemwith the reduction in thermal (gas and coal) capacity share from the total of 82% in 2020 to 70% in 2030. (Source: Energy Commission, Malaysia ) (Source: Energy Commission, Malaysia ) Figure 4-21: Renewable Energy Additional Required Installed Capacity Projection Figure 4-22: Additional Required RE Installed Capacity by 2025 Installed Capacity (MW) Growth Rates (%) 2025 2022 2023 2022 - 2025 CAGR = 81.6% 2022 - 2025 CAGR = 87.4% 2024 597 193.1% 70.6% 19.8% 350 715 2,096 Growth Rate RE Installed Capacity P OWE R G E N E R AT I O N I N D U S T R Y 3,758 MW RE Installed Capacity 2,172 MW Solar 1,586 MW Non-Solar