BANGI, Sept 1 (Bernama) -- The Government is targeting five per cent ofthe country's electricity output from the Grid Distribution System to besupplied by renewable energy sources by 2005.Chief Executive Officer of the Malaysia Energy Centre Dr Hassan Ibrahimsaid harnessing energy from renewable sources was necessary to lessenMalaysia's dependence on fuel sources such as oil and gas which weredepleting in the next few decades.

"Five per cent from renewable sources is the country's target under theEighth Malaysia Plan. Our country's gas sources may deplete after about 40years, while oil after 10 years.

"Therefore, we have to diversify and seek other fuel sources such asrenewable energy," he told Bernama in an interview.

Although renewable energy offered great commercial potential, it wascurrently used on a small scale by the agriculture sector.

Dr Hassan said more awareness programmes were needed to explain to theindustry the benefits and advantages of renewable energy and its impact onthe environment and economy.

He said the country's oil palm sector, for example, also produced hugeamounts of palm residuals which were good sources of renewable energy.

Dr Hassan said efforts to set up commercially viable renewable energyprojects in the agriculture sector and other industries would requirecooperation from the agriculture sector, banking industry and energyoperators.

"Some operators do not find it bankable to build plants for renewableenergy. At the same time, there is a shortage of funding opportunities asthe banking sector is not convinced that a project is commerciallyviable," he said.

He said more awareness campaigns, workshops and information sharing wouldbe conducted to address these issues.

The Malaysia Energy Centre, established in 1998, is an independentnon-profit body set up to formulate, coordinate and manage energy-relatedresearch and development programmes and promote the development ofindigenous technological capabilities.

Its key role is to promote renewable energy and energy efficiency projectsand formulate financing mechanisms to make these projects commerciallyviable.

-- BERNAMA