30 November 2024

Malaysia's journey towards a sustainable future has increased interest in electric vehicles.

While the penetration rate is still low, there has been a significant uptick in electric vehicle (EV) adoption.

As of October 2024, there were 3,354 existing EV charging stations. This number is expected to rise rapidly, reflecting the government's strong commitment to green mobility.

This initiative, which aims to deploy 10,000 charging stations by 2025, is a critical component of the Low Carbon Mobility Blueprint (LCMB) 2021-2030 and the National Energy Transition Roadmap (NETR).

Achieving this target requires overhauling current regulatory frameworks and infrastructural capabilities.

The EV ecosystem in Malaysia includes various charging solutions, ranging from home chargers to public rapid chargers located at petrol stations, shopping malls, and rest stops along highways.

Public EV charging infrastructure is crucial for promoting broader adoption, especially for long-distance travel, which relies heavily on accessible and efficient charging points.

COMPLEX REGULATORY LANDSCAPES

A complex regulatory landscape hinders the establishment of EV charging stations in Malaysia.

Charge Point Operators (CPOs) must navigate a cumbersome approval process involving up to nine different technical agencies before they can even seek final approval from local authorities.

For instance, getting approvals from agencies such as Tenaga Nasional Berhad (TNB) for power supply requirements and the Malaysian Highway Authority (LLM) for location suitability can take several weeks to months, creating significant bottlenecks.

The overlap in procedural requirements between different agencies further complicates the process.

For example, obtaining multiple work permits from various LLM levels at its headquarters and regional offices, and additional clearances from local authorities, results in repeat documentation submissions and approval steps.

These redundant processes delay the project timeline and increase administrative burdens on CPOs.

The absence of clear, standardised guidelines adds to the complexity.

Different local authorities may interpret regulations differently, leading to inconsistencies in approval processes and requirements.

This lack of uniformity can result in confusion and miscommunication, making it challenging for CPOs to understand and fulfil all necessary conditions.

INFRASTRUCTURE READINESS

In addition to regulatory hurdles, the current infrastructure often fails to support the high demands of EV charging stations, especially on highways.

Fast-charging EV stations require a significant load that many existing power supply systems cannot handle.

Upgrading these systems to meet the demands involves substantial investment and coordination with utility providers.

A typical fast-charging station requires robust power supply infrastructure, including the potential installation of new substations, which can be both time-consuming and costly.

Another significant challenge is identifying suitable locations for EV charging stations that meet all technical and regulatory requirements.

Locations must be accessible, safe and equipped with the necessary infrastructure to support high electricity demand.

This involves detailed site assessments and modifications, such as ensuring adequate space for charging bays and integrating new installations with existing road and traffic systems.

STREAMLINING PROCESSES

Malaysia Productivity Corporation (MPC), in collaboration with the National Electric Vehicle Task Force (NEVTF), has proposed several innovative solutions to streamline the approval and deployment processes for EV charging stations.

MPC director-general Zahid Ismail said the proposed procedures aim to reduce the time and cost of establishing EV charging stations and emphasise transparency and predictability.

"For example, the estimated costs for developing an EV charging station at an existing petrol station are clearly outlined, covering various expenses from data gathering to final inspection and certification, amounting to RM56,700 over 87 days.

"Tailored procedures for different deployment scenarios, such as existing petrol stations and parking lots at Rest and Service Areas (R&R), have been developed to address specific challenges and reduce procedural bottlenecks.

"Comprehensive guidelines are being drafted based on these recommendations to expedite the construction of EV charging stations," said Zahid.

Introducing an integrated online submission platform under the One Stop Centre (OSC) 3.0 Plus framework will allow CPOs to submit all necessary documents and applications in a single digital portal.

This platform will concurrently distribute the submissions to relevant agencies, reducing redundant paperwork and facilitating a more cohesive review process.

In addition, TNB has implemented a 'green lane' for EV charging station supply connections, reducing pre-consultation durations from 30 days to 14 days.

This fast-tracked process swiftly addresses technical requirements, enabling faster charging station setup.

POTENTIAL IMPACT OF STREAMLINED PROCESSES

By reducing the time and cost of setting up charging stations, more CPOs will be incentivised to invest in the infrastructure.

This will lead to a denser network of charging points, making EVs a more viable option for consumers and promoting higher adoption rates.

Expanding EV infrastructure will create numerous job opportunities in various sectors, including construction, engineering and maintenance, contributing to economic growth.

Increased adoption of EVs will reduce carbon emissions, enhance energy security and minimise dependence on fossil fuels, aligning with Malaysia's commitments to combating climate change.

The push towards a robust EV ecosystem will drive innovation and technological advancement.

Malaysia can position itself as a leader in EV technology and infrastructure in the region, attracting investments and fostering a culture of innovation and sustainability.

By reducing the complexity and duration of approval processes, government agencies can operate more efficiently, dedicating resources to higher-value activities rather than being bogged down by redundant steps.

This translates into faster deployment of EV infrastructure, which supports national sustainability goals and enhances the reputation and operational effectiveness of these agencies.

A more predictable and transparent regulatory environment encourages innovation and proactive stakeholder engagement, leading to a more cohesive and forward-thinking approach to infrastructure development.

When regulatory bottlenecks are minimised, CPOs can deploy EV charging stations more rapidly, expanding their service offerings and capturing market opportunities faster. This facilitates faster returns on investment and better capital utilisation, driving profitability.

A well-coordinated regulatory framework reduces uncertainties, allowing CPOs to plan and execute projects more efficiently, ultimately enhancing productivity, strengthening competitiveness and contributing to sustained economic growth.

MOBILISING STAKEHOLDERS FOR GREEN REVOLUTION

The transition to a sustainable future depends on the concerted efforts of all stakeholders in the EV ecosystem, including government agencies, private sector players, and consumer groups.

By embracing collective actions, Malaysia can achieve its environmental goals and set a benchmark for other nations aspiring to transition to low-carbon mobility.

Source: New Straits Times