KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
The Crown Estate of King Charles III will collaborate with the newly formed state-backed company, Great British Energy, to accelerate the development of offshore wind farms crucial for the UK's energy and climate targets.
Key Points:
Partnership Announcement:
- Objective: The partnership aims to advance the construction of offshore wind farms, essential for achieving the UK's goal of a zero-carbon electric grid by 2030.
- Public Sector Involvement: The collaboration allows the public sector to engage earlier in development stages, potentially attracting more private investment.
Investment Potential:
- Government Statement: The agreement could leverage up to £60 billion (RM361.58 billion) of investment into the UK’s renewable energy sector.
- Energy Security: This move is part of Prime Minister Keir Starmer's strategy to enhance energy security and increase state involvement in the energy sector.
Upcoming Challenges:
- CfD Auction: The first test of this partnership will be in this year’s Contracts for Difference (CfD) auction. Sam Hollister of LCP Delta highlighted the need for significant capacity procurement to meet decarbonization goals.
- Capacity Goals: LCP Delta estimates that the UK must secure 15 gigawatts (GW) of capacity in the next two auctions to reach the 55GW target. Earlier estimates suggested the current budget would yield only 4-6GW at the next auction.
Funding and Operations:
- Great British Energy: The company is receiving £8.3 billion in taxpayer funding to own and operate assets in partnership with the private sector.
- Borrowing and Leasing: The government aims to secure 20-30GW of new offshore wind seabed leases by 2030 through this initiative.
Industry Perspective:
- Private Sector Role: Emma Pinchbeck, CEO of Energy UK, emphasized that the success of GB Energy hinges on complementing, rather than duplicating, private sector investment and expertise.
- Public and Private Collaboration: Ensuring that private investment is integrated rather than displaced is seen as critical for achieving the intended economic and energy benefits.
This collaboration marks a significant step towards strengthening the UK's renewable energy infrastructure and addressing energy security concerns, setting the stage for substantial private and public sector investments in offshore wind power.
Comments
Post a Comment