Solar-panel plant: 'Concerns misplaced'

State-owned investment arm InvestPenang has moved to deflect concerns about the  520 million euro solar-panel plant to be built in Batu Kawan by Germany’s Bosch Group.

InvestPenang head Lee Kah Choon pointed out that every industry produces waste.

"The critical component is whether it is properly treated and managed," he said in a statement.

"Solar energy industry is no different but environmental concerns of it being more serious than other industries are not valid. This is because it is considered not only a clean energy but also a renewable one encouraged by all countries.”

Gerakan has criticised Chief Minister Lim Guan Eng for allowing the project while objecting to the Lynas plant in Gebeng, Kuantan, because of potential radioactive hazards.

On safety and environmental issues, Lee said the Department of Environment (DOE) will ensure that the solar-panel project adheres to guidelines laid out in the National Policy on the Environment.

"I am confident that the DOE will carry out rigorously its requirements in compliance and enforcement of environmental guidelines in Penang," he said.

Prime Minister Najib Abdul Razak's Economic Transformation Programme (ETP) has identified the photovoltaic (PV) industry as a main area for growth, Lee said.

Activities promoted include R&D; manufacture of core components; assembly, packaging and testing; and sales, distribution and services for PV.

"According to the ETP, Malaysia targets to be the world’s Number 2 producer of PV by 2020,” said Lee, who was once Gerakan’s Jelutong parliamentarian.

"This is in line with the target for renewable energy sources to contribute at least 5.5 percent of the country’s entire energy mix by 2015, as outlined in the National Renewable Energy Policy.”

Lee also said the International Trade and Industry Ministry has identified solar cells as a product that is eligible for incentives such as pioneer status or investment tax allowance.

Efforts to promote investment in the world’s fastest growing energy industry have now placed Malaysia as the world’s third-largest solar module manufacturer.

Malaysia, he said, has witnessed an influx of PV global players notably First Solar in Kedah, Q-Cells in Selangor, AUO SunPower in Melaka, and MEMC in Sarawak.

The most recent investment has come from Japanese electronics giant Panasonic which will set up a solar manufacturing base in Kulim, that will be operational in December.

Lee said Penang has always ensured that its economic directions are aligned with federal policies. 

"Penang failed to attract First Solar when it first came in 2005 and as a result, (the state) lost 4,000 direct employment opportunities and the chance to participate in the PV industry," Lee added.    

"The success in attracting Bosch Solar Energy is to plug that gap.”