MDV is top financier for green energy projects

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Padang Terap, 16 February 2021 – Malaysia Debt Ventures Bhd (MDV) has approved a total of RM912.4 million in financing for projects in the green energy sector, thus becoming the highest financier under the Green Technology Financing Scheme (GTFS) since its introduction in 2010.

MDV chairman Khairul Azwan Harun said the financing was approved for 64 companies to support the green technology sector as well as renewable energy in the country.

“To date, the current financing total for the sector is RM381 million and of that amount, RM255 million is for renewable energy projects.

“A total of RM82.5 is for energy efficiency projects, while the balance of RM43.1 million is for various related green projects,” he told Bernama after visiting a renewable power station (biomass) project site at Kuala Nerang near here, today.

He was accompanied by MDV chief executive officer Nizam Mohamed Nadzri.

Khairul Azwan said the capacity of electricity generated so far by biogas-based, biomass, mini hydro and solar power stations financed by MDV totalled 152 megawatts.

He said MDV, which is a subsidiary of the Minister of Finance (Incorporated) has always been consistent in supporting the green technology sector in the country and remains committed in seeking for funds to support the programmes.

“MDV is also endeavouring to issue sukuk amounting to RM2 billion this year to support its financing programme for the next five to seven years.

“This has already been approved by the Ministry of Finance, for publication in the third quarter of this year,” he disclosed.

MDV, Khairul Azwan said, believes that the sector will continue to grow in tandem with the country’s goal of becoming a green technology leader in Asia, in spite of the COVID-19 pandemic.

“MDV as a national technology funder will continue to play an important role in the sector to support the government in achieving sustainable national development targets,” he said.

To increase funding and drive the energy efficiency sector, he said MDV has introduced the Energy Performance Contracting Fund (EPC) financing programme.

“With the cooperation of the Ministry of Energy and Natural Resources, we introduced the EPC programme where the government through the former will subsidise financing costs such as guaranteed cost (non-principal).

“The government channels a sum of money to cover the interest portion, the principal comes from MDV (financing amount), so that our borrowers could have access to a lending facility that is more competitive and practical,” he said.