Malaysia aims for 40% renewable energy capacity.

By Oliver Townsend Jul 9, 2024
Malaysia on track to achieve 40% renewable energy capacity.pngOrginal image from:

Malaysia is making significant strides towards achieving its renewable energy goals, with a target of 40 percent renewable energy capacity by 2035. This ambitious plan follows the Ministry of Energy and Natural Resources of Malaysia (KeTSA) setting a target of 31 percent renewable capacity by 2025 and 40 percent by 2035. The National Energy Policy (2022–2040) further aims for an 18.4 GW renewable capacity by 2040. Currently, renewables account for 13.3 percent of Malaysia’s total energy capacity, and if current growth trends continue, the country is projected to reach 18.2 percent renewable capacity by 2025 and 36.4 percent by 2035.

Renewable Energy Initiatives in Malaysia

In 2016, the energy commission Suruhanjaya Tenaga (ST) launched a large-scale solar (LSS) program with a quota of 1,250 MW for the 2017-2020 period. This initiative spurred the growth of grid-connected PV systems in the country. The Net Energy Metering program also played a crucial role in expanding the distributed renewable energy market in Malaysia.

Malaysia mainly relies on solar PV, biopower, and small hydro as its primary renewable energy sources. While the 30 MW Tawau geothermal project initiated in 2015 was abandoned, the country has one small onshore wind plant with a capacity of 0.2 MW. However, several small wind projects are still under consideration despite seasonal unfavorable wind speeds.

Government Support and Incentives

The Malaysian government has implemented various initiatives to promote green energy, such as extending the Green Investment Tax Allowance and Green Income Tax Exemption until 2023. To encourage participation in the Net Energy Metering Scheme (NEM), the government announced an extension of the income tax exemption for solar leasing companies until December 2026. Additionally, the government offers Feed-in Tariffs (FiT) for capacities up to 1MW and Net Metering policies to drive renewable energy adoption in the country.

Sudeshna Sarmah, a Power Analyst at GlobalData, emphasized that strong governmental policies and foreign investments in large-scale renewable projects could significantly propel Malaysia towards achieving its renewable energy targets.

Success Stories in Renewable Energy

Westbridge Renewable Energy recently revealed updates to its portfolio, showcasing the company’s commitment to advancing renewable energy projects. Canadian Solar’s e-STORAGE also secured a contract from Nova Scotia Power, highlighting the growing demand for energy storage solutions.

Nimmi Kavasery’s appointment as the Managing Director of Project Finance at Arevon Energy signifies the industry’s focus on specialized talent to drive renewable energy initiatives. LG Energy Solution unveiled innovative energy storage solutions at InterBattery Europe, contributing to the development of sustainable energy technologies.

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