Malaysia’s Renewable Energy Target for 2025
Ram Tumuluri “Malaysia is currently seeking to increase the country’s renewable energy generation to 20 per cent by 2025. This is an ambitious goal, given that the renewable energy percentage for 2019 is just 2%. With the government taking a series of measures to increase public-private partnerships and private funding, the country could experience more investments from private players in the renewable energy sector, which could eventually boost the sector’s growth and achieve its goal for 2025. In this article, our team analyses the latest information about renewable energy in Malaysia”.
In this article
20% Renewable Energy Generation by 2025
The Implementation of Net Energy Metering (NEM) programme
Malaysia’s Renewable Energy Targets
20% Renewable Energy Generation by 2025
By 2025, Malaysia has set a target of 20% renewables in the energy mix, an 18% increase from the 2% it had in 2018. The production of large-scale solar power is one of the planned initiatives. It will be necessary for Malaysia to make a total of USD 8 billion investment in renewable energy during this timeframe to meet the set target. This will be accomplished through the Malaysia Energy Supply Industry 2.0 plan which will be launched sometime in November of 2020. The aim of the plan is to create a more competitive and diverse electricity generation mix, one that is also more transparent for business and consumers.
The Implementation of Net Energy Metering (NEM) Programme
There has been a positive response to the implementation of the Net Energy Metering (NEM) program where PV solar energy will be first consumed and the excess supplied to the national utility company Tenaga Nasional Berhad (TNB). The program itself is designed to cultivate and further propel Malaysia’s adoption of solar PV. The Feed-In-Tariff (FiT) was the first system available for solar PV adopters, and FiT has now been discontinued and replaced by NEM. Besides the NEM scheme, Malaysia has also launched the Large Scale Solar (LSS) competitive bidding program to bring down energy costs for the construction of a large-scale solar photovoltaic (LSS) plant.