Malaysia is expected to achieve only 12.1% renewable capacity by 2025 and 22.7% by 2035, moreover, by 2040 the renewable capacity is expected to reach only 16GW, falling short of its target due to the absence of robust policy support.
The government has implemented feed-in tariffs (FiT) (for up to 1MW capacity) and net metering policies in place to encourage the adoption of renewable energy. But there are no major incentives or support for large-scale renewable projects.
The country has well-developed solar module production facilities, but it should seek to exploit this and create a strong value chain. It also needs to explore untapped wind and geothermal potential. We’re looking forward to seeing a more robust policy to support renewable energy growth in Malaysia in the next few decades.