Written By Irhamy Ahmad, Founder and Managing Director of Irhamy Valuers International
Malaysia is accelerating its shift to renewable energy (RE) to meet rising energy demand and its 2050 net-zero emissions goal. Solar, hydro, biogas, and biomass are central to this low-carbon transition, backed by strong policies and private sector engagement
Solar Leads the Charge
Solar energy is Malaysia’s fastest growing RE source. Through the Large-Scale Solar (LSS) program, over 2 GW of capacity is either operational or in development, with LSS5 upcoming. Rooftop solar is also rising via the Net Energy Metering (NEM) program, especially among commercial users.
Hydropower & Rural Impact
Hydropower remains the most established RE source, especially in Sabah and Sarawak. While large hydro is not always classified as renewable, small hydropower plants are helping provide clean energy to rural communities.
Biogas & Biomass: Waste to Energy
Malaysia is leveraging its palm oil and agricultural waste—like POME and empty fruit bunches—for biogas and biomass power generation. These efforts reduce methane emissions and support rural energy access. Supported by Feed-in Tariff (FiT) incentives via SEDA, these projects are growing steadily.
National Frameworks Driving the Transition
Several national strategies are guiding Malaysia’s clean energy shift:
- Green Technology Financing Scheme (GTFS): Offers soft loans and guarantees for RE projects.
- MyRER (Malaysia Renewable Energy Roadmap): Targets 31% RE capacity by 2025, 40% by 2035.
- NETR (National Energy Transition Roadmap): Aims for net-zero by 2050, focusing on energy efficiency and low-carbon tech.
- National Biomass Action Plan: Boosts biomass uses through supply chain development and rural investment.
Current Progress and Future Outlook
As of 2024, 25% of Malaysia’s installed power capacity comes from renewables. While fossil fuels still dominate generation, the trend is shifting. Nationwide, states are developing diverse RE projects, signalling strong momentum.
Challenges persist—especially in grid integration for solar and scaling biogas/biomass—but Malaysia’s direction is clear. With policy support, investment, and innovation, the country is well on its way to a cleaner, more resilient energy future.
