• WORLD HYDROPOWER CONGRESS

Sustainability is key to maintaining company ’ s social licence to operate

HYDROPOWER HAS paved the way for a sustainable energy future for Sarawak and beyond while also providing the foundation for Sarawak Energy ’ s aspiration to be the green energy specialist of the region .

Sarawak Energy Group CEO , Datu Sharbini Suhaili , shared an overview of Sarawak ’ s journey in sustainable hydropower development at the 2021 World Hydropower Conference .

Organised by the International Hydropower Association ( IHA ), the biennial congress provides a platform to share experiences showcasing examples of best practices and the guiding policies and strategies of the industry .

Held virtually for the first time , the theme for this year ’ s congress is ‘ Renewables Working Together in an Interconnected World ’, under the patronage of the President of Costa Rica , supported by Instituto Costarricense de Electricidad ( ICE ).

At the opening plenary session during the launch event , Sharbini joined a panel with distinguished speakers Dr Ashok Khosla ( Chairman of the Hydropower Sustainability Council ) and Pavan Sukhdev ( President of WWF International ) to discuss “ Challenges and Opportunities of Hydropower Over the Next Decade ”.

Sharbini highlighted the benefits

shifting funding from equity to private debt capital . The latter will grow from 44 per cent in 2019 to 57 per cent in 2050 , an increase of almost 20 per cent over planned policies .

Energy transition technologies will find it easier to obtain affordable long-term debt financing in the coming years . At the same time , fossil fuel assets will increasingly be avoided by private financiers and therefore forced to rely on equity financing from retained earnings and new equity issues .

But public financing will remain crucial for a swift , just and inclusive energy transition and catalyse private finance . In 2019 , the public sector provided US $ 450 billion through public equity and of renewable hydropower and how Sarawak Energy champions sustainability in its business and operations .

“ Sustainability is key to maintaining our social licence to operate and right to grow , and everyone has a part to play in this . The global energy market is evolving and there has been a clear shift in the demand for renewable energy ,” Sharbini said .

“ Sarawak Energy is Malaysia ’ s largest renewable energy provider through a power generation mix that is predominantly hydropower . We aspire to be the green company of the region , sharing our renewable , reliable and affordable hydropower resources with our neighbours .”

During the panel discussion , speakers shared their thoughts on various aspects of hydropower , focusing on sustainability . The discussion provided a balanced overview of the positive and negative impacts of hydropower development , concluding that sustainable hydropower development would result in more benefits , especially with the inclusion of the standards and commitment to the San Jose Declaration .

The Declaration , which delegates will debate throughout the congress , is a manifesto for change to spur more sustainable hydropower developments . It also sets out an ambitious new set of principles

lending by development finance institutions .

In IRENA ’ s 1.5 ° C scenarios , these investments will almost double to US $ 780 billion . Public debt financing will be an essential facilitator for other lenders , especially in developing markets .

Policymakers

As markets alone are not likely to move rapidly enough , policymakers must incentivise and eliminate market distortions that favour fossil fuels and facilitate the necessary changes in funding structures .

This will involve phasing out fossil fuel subsidies and changing fiscal systems to reflect the negative environmental , health and recommendations to guide new hydropower development and advance the sector ’ s contribution to the clean energy transition .

Renewable energy sector

During the forum , Sharbini highlighted the genuine benefits of hydropower now enjoyed by Sarawak .

“ Over a decade ago , the renewable energy sector was identified as one of the sectors to accelerate economic development in Sarawak .

“ Hydropower offers the lowest Levelised Cost of Energy or LCOE . It gives Sarawak a sustainable and competitive advantage to transfer the savings to our domestic customers . At the same time we can attract energy intensive industries by offering competitive bulk power tariffs ,” added Sharbini .

Sarawak Energy offers the lowest average unsubsidised tariffs in Malaysia and among the lowest in the region . In addition to energy affordability , Sarawak ’ s focus on hydropower has enhanced sustainability by delivering energy security and reliability and helping to power Sarawak ’ s ambition to achieve developed status by 2030 through hydro-industrialisation from Sarawak Corridor of Renewable Energy or SCORE .

and social costs of fossil fuels . Monetary and fiscal policies , including carbon pricing policies , will enhance competitiveness and level the playing field .

Enhanced international cooperation and a comprehensive set of policies will be critical to driving the broader structural shift towards resilient economies and societies . If not well managed , the energy transition risks inequitable outcomes , dual-track development and an overall slowdown in progress .

Just and integrated policies will remain imperative to realise the full potential of the energy transition .

Today ’ s policies , finance and socio-economic analysis complete the outlined technological avenues for a 1.5 ° C-compatible energy pathway , providing policymakers with a playbook to achieve optimal results from the transition .

Launched by energy leaders at the Agency ’ s Global High-Level Forum on Energy Transition , this Outlooks aims to raise ambition towards UN High-Level Dialogue on Energy and Climate Conference COP26 later this year . — @ greenXtra

Sharbini also shared how Sarawak Energy is embedding sustainability practices in its business and operations , highlighting that its projects are developed according to the International Hydropower Association ( IHA ) Sustainability Assessment Protocol .

“ We also have an internal Sustainability Division that assesses our hydropower development and operations to improve sustainability strategies and performance .

“ Sarawak Energy ’ s overall corporate sustainability performance is disclosed via our Annual & Sustainability Report , which is guided by Global Reporting Initiative ( GRI ) Standard as part of our commitment to transparency .”

Hydropower Sustainability Assessment Protocol

Sarawak Energy voluntarily adopted the Hydropower Sustainability Assessment Protocol . In 2011 , it formed a sustainability partnership with the IHA to ensure best hydropower development and operations practices , including social issues related to project-affected communities .

The Group is a sustainability partner and platinum member of the IHA since 2010 and Sharbini was recently re-elected as a member of the IHA Board .

Last year , Sarawak Energy became the first corporation in Malaysia to commit to the “ Business Ambition for 1.5 ° Celsius ” under United Nations Global Compact , joining another 249 companies around the world at the time .

Signatories commit to set a science-based emission reduction target across relevant scopes , in line with the Paris Agreement to pursue efforts to limit the global temperature increase to 1.5 ° C above pre-industrial levels by 2030 .

Aside from the Declaration , the 2021 World Hydropower Congress saw a range of significant announcements and commitments made by and on behalf of the hydropower sector , including the launch of the Hydropower Sustainability Standard , a new Environmental Social , and Governance or ESG certification scheme , as well as recommendations from the International Forum on Pumped Storage Hydropower , co-chaired by the United States Department of Energy .

The congress was on Sept 7-24 , 2021 , with virtual sessions across multiple time zones bringing discussions to participants worldwide .

Sharbini shared an overview of Sarawak ’ s journey in sustainable hydropower development at the opening plenary session during the launch of 2021 World Hydropower Conferenc . — @ greenXtra