Penang has introduced stricter sustainability requirements for new commercial and industrial buildings, marking a major step in its transition towards cleaner energy. Under the new guideline, at least 75% of a building’s roof area must be installed with solar panels, or the building must meet renewable energy sourcing targets according to its Tenaga Nasional Berhad (TNB) tariff category.

State infrastructure, transport and digital committee chairman Zairil Khir Johari said the move aims to boost renewable energy usage in line with the Penang Energy Framework (PEF) — the state’s roadmap towards its 2030 clean energy and efficiency goals. Depending on their energy category, buildings must source between 2% and 25% of their total consumption from renewable sources.

“Large commercial buildings with air-conditioned areas exceeding 4,000 square metres must also ensure that at least 2% of their energy comes from renewables,” Zairil said in his keynote address at the Penang Green Summit 2025, held at the Penang Waterfront Convention Centre on October 30.

He described the PEF as a “living document” designed to evolve with changing needs, policies, and technologies — while fostering behavioural change and energy-efficient practices across industries.

To expand renewable energy generation despite limited land availability, Zairil revealed that Penang Water Supply Corporation (PBAPP) is studying the feasibility of floating solar systems on several dams. “Floating solar offers a viable and innovative way to harness clean energy,” he said.

He added that renewable energy will also play a central role in the upcoming Penang Silicon Island (PSI) development. Its Green Tech Park will be fully powered by solar energy in the first phase, supported by rooftop panels and off-site renewable procurement.

Zairil said Penang’s clean energy initiatives are aligned with national policies, particularly the Federal Government’s Solar ATAP programme, which encourages businesses to invest in solar solutions. “The journey forward requires innovation, investment, and collaboration — the government alone cannot achieve this transition,” he said.

Chief Minister Chow Kon Yeow, who officiated the summit, reaffirmed the state’s commitment to supporting Malaysia’s National Energy Transition Roadmap (NETR), which targets net-zero emissions by 2050. He said the Penang Green Summit has evolved into a collaborative platform uniting policymakers, industries, academia, and communities in advancing low-carbon growth.

Chow added that since the launch of the PEF in November 2024, local councils — Majlis Bandaraya Pulau Pinang (MBPP) and Majlis Bandaraya Seberang Perai (MBSP) — have already begun integrating renewable and efficiency criteria into their building approval processes.

Solar Voltech, a subsidiary of the Penang Development Corporation (PDC), has been appointed to spearhead renewable upgrades for public buildings, while the Penang Green Council (PGC) is developing an AI-assisted energy data platform for more informed and efficient planning.

The summit also witnessed the signing of a Memorandum of Understanding (MoU) between the state government and Alliance Bank Malaysia Berhad to establish the Climate Mitigation Fund (CM Fund) — Malaysia’s first state-level blended financing initiative to help SMEs transition towards sustainable, ESG-driven operations.

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