With more than 100 countries pledging net-zero carbon emissions by 2050, Malaysia is equally committed to this ambitious goal, says the Energy Commission (EC), highlighting the significant strides the nation has made in renewable energy (RE) adoption and energy efficiency.

“The nation’s energy sector is currently undergoing a major transformation in the form of a global energy transition — shifting from fossil-based with high carbon emissions intensity to clean and renewable energy sources while addressing the energy trilemma of security, affordability and sustainability,” says EC CEO Datuk Abdul Razib Dawood.

Malaysia has outlined initiatives towards net zero, including the National Energy Policy and the National Energy Transition Roadmap (NETR), with 10 initiatives expected to attract RM435 billion to RM1.85 trillion in investments by 2050.

The Responsible Transition Pathway 2050 under the NETR sets Malaysia’s 2050 targets for energy efficiency and RE, including 23% savings in the commercial sector, 20% in residential, 70% RE capacity, and growth in green hydrogen, biofuel, electric vehicles and CO2 storage.

The existing policies are also set to increase installed RE capacity from 40% in 2040 to 70% by 2050 by developing self-contained systems and scaling up solar installations in government buildings.

Besides that, Abdul Razib also points to the long-anticipated Energy Exchange Malaysia (Enegem) programme introduced by the Ministry of Energy Transition and Water Transformation (Petra) earlier this year.

Using existing infrastructure, the energy exchange initiative began with the historic first transmission of 50MW of green electricity from Malaysia to Singapore on Dec 9, 2024, as part of the Renewable Energy Supply Agreement (RESA) between Tenaga Nasional Bhd (TNB) and Sembcorp Power Pte Ltd (Sembcorp Power). The event marked a significant milestone in bilateral energy cooperation between Malaysia and Singapore.

The Enegem initiative falls under the Cross-Border Electricity Sales for Renewable Energy Scheme (CBES RE), enabling Malaysia to position itself as a leader in regional RE integration and trading. The effort supports Malaysia’s energy transition agenda and the region’s vision for a unified Asean Power Grid, which Malaysia will spearhead during its Asean chairmanship in 2025.

“The initiation of auctioning via the Enegem platform will undoubtedly allow Malaysia to further strengthen its cross-border electricity integration framework while paving the way for greater renewable energy development and regional cooperation on cross-border energy trading between Asean countries,” says Abdul Razib.

Meanwhile, the recently introduced Corporate Renewable Energy Supply Scheme (CRESS) and Corporate Green Power Programme (CGPP) aim to improve corporate access to green electricity — CRESS through open grid access and CGPP through virtual power purchase agreements (VPPA) or corporate green power agreements (CGPA) for virtual solar energy purchases.

To meet the growing demand for green electricity among corporations with environmental, social and governance (ESG) commitments, the Green Electricity Tariff (GET) was introduced, allowing both the public and companies to buy green electricity and reduce their carbon footprints.

Additionally, Petra has announced the bidding for the fifth round of the large-scale solar programme (LSS5) or LSS-Peralihan Tenaga SuRiA, with a total generation quota of 2,000mw across four packages.

“Currently, there is a total of 4,069mw solar PV installed capacity in operation in Malaysia, while there is up to a total of 7,000mw of RE capacity committed in the pipeline, which includes quotas allocated under the CGPP and LSS5 programmes.

“Apart from this, we are also expecting additional RE coming in from CRESS and other NETR flagship catalyst projects and initiatives,” explains Abdul Razib.

He adds that the Energy Efficiency and Conservation Bill 2023 (EECA) — a significant piece of legislation representing a key component of the NETR that aims to promote demand-side energy management — was passed in June this year.

“This timely and necessary development underscores the nation’s dedication to prioritising climate action while balancing other national priorities such as economic growth and the protection of the rakyat and our natural resources,” says Abdul Razib.

He adds that it is also important that the government remains consistent in its policies to ensure a successful and equitable energy transition. 

“A successful programme requires consistent government policies and clear signals to encourage industry investors to properly balance the interest of consumers and the industry’s development expectations,” says Abdul Razib.