Renewable Energy
History
In Malaysia, the evolution of renewable energy has been marked by a diverse mix of solar, hydropower, biomass, biofuels, and biogas projects.
Starting with hydropower in the early 20th century, Malaysia has now prioritized renewable energy for sustainable development and energy security.
Solar PV Evolution in Malaysia
1982
The inception of solar PV installation in Malaysia traces back to the pioneering solar PV rural electrification programmed. This involved the installation of solar PV systems in 100 homes across several remote villages nationwide.
2000
Malaysia’s largest electricity utility company launched the country’s first grid-connected PV system. Subsequently, from 2006 to 2010, the SURIA 1000 program unfolded, offering subsidies to successful bidders for the deployment of solar PV systems in their residences.
2011
The renewable-energy Feed-in Tariff (FiT) mechanism was established under the Renewable Energy Act 2011. Under this FiT, electricity generated from solar PV systems could be sold to utility companies at a fixed premium price for a defined duration.
2017
The FiT programme came to an end in 2017 and it was replaced by Net Energy Metering (NEM) which enables solar users to generate electricity through solar net metering and sell the excess electricity to power grids.
2019
Since January 2019, enhancements to NEM, such as the introduction of the true NEM concept, allow excess solar energy to be exported back to the grid on a “one-on-one” offset basis.
Hydropower Evolution in Malaysia
1900s – 1960s
Hydropower in Malaysia began in the early 20th century with small-scale plants aiding local industries and communities. These early projects used run-of-river setups and harnessing river flow for electricity.
1970s – 1990s
Malaysia witnesses a significant expansion of hydropower capacity with the construction of large scale hydroelectric dams like one of the largest dams in Southeast Asia, Kenyir Dam in Terengganu during this period which began in 1985.
1990s – 2000s
The Bakun Dam project in Sarawak, is one of Malaysia’s most ambitious hydropower projects in Malaysia. Construction of the dam starting in 1990s but faced several delays due to technical, financial, and environmental challenges. However, it was finishes in 2011 with its reservoir now utilized for power generation.
2000s – Present
Recently, Malaysia has prioritized renewable energy, to diversify its energy mix and reduce carbon emissions. The government is actively promoting small ad and mini hydropower projects, especially in rural regions to enhance energy access and sustainability.
Biomass Evolution in Malaysia
1980s – 1990s
The use of biomass for energy production in Malaysia in the form of traditional biomass such as firewood and agricultural residues for cooking and heating purposes in rural areas.
2000s – 2010s
Early 2000s, the Malaysian government began to recognize the potential of biomass as renewable energy source and initiated various policies and programs to promote its utilization. This encompasses the National Biomass Strategy 2020 initiated in 2005, aiming to foster sustainable utilization of biomass resources for energy generation and diverse applications.
2011
The Renewable Energy Act was enacted, and the Sustainable Energy Development Authority (SEDA) Malaysia was established to oversee the implementation of the Feed-in Tariff (FiT) mechanism.
The FiT has led to an increase in the number of biomass power plants, leveraging agricultural and industrial waste products. Advances in biomass technology have improved the efficiency and feasibility of biomass power generation, making it a more attractive option for investors.
Biogas Evolution in Malaysia
1980s - 1990s
Biogas production in Msia began with its utilization in the palm oil industry to manage organic waste in the 1980s and 1990s. Palm oil mills generate significant quantities of organic waste, such as Palm Oil Mill Effluent (POME) and Empty Fruit Bunches (EFB).
Early 2000s
Policies and incentives were introduced by the Malaysian government to encourage investment in biogas projects, in the palm oil sector.
Mid 2000s
Biogas projects started to emerge in other agricultural sectors such as livestock farming and food processing industries, because of increasing concerns about climate change and need for sustainable energy sources.
2010s
Government incentives including Feed-in Tariffs and tax exemptions, and collaborative efforts between agencies, research institutions and the private sector accelerated biogas project expansion in Malaysia.
Present
Biogas continues to play a significant role in Malaysia renewable energy landscape and ongoing efforts aim to enhance its role as a sustainable energy source in Malaysia.
Biofuels Evolution in Malaysia
1980s – 1990s
Malaysia began exploring biofuel production and focusing on palm oil based biodiesel.
2000s
The Malaysia government initiatives to reduce dependence on fossil fuels, enhance energy security, and promote rural development.
2006
Malaysia launched the National Biofuel Policy aimed at promoting the use of biofuels in transportation sector. The policy targets for biofuels with fossil fuels and offered incentives to support biofuel production and consumption.
2007 - Present
Malaysia's biofuel program like the Fuel Incentive (FIC) program and the introduction of biodiesel blends such as B5 and B20. These programs are managed by the Ministry of Plantation Industries and Commodities (Kementerian Perladangan dan Komoditi, KPK).
Policy & Act
List of Policies of Renewable Energy
Fifth Fuel Policy (8th Malaysia Plan, 2001-2005)
Aimed to diversify Malaysia’s energy sources beyond traditional fuels like oil, gas, coal, and hydroelectric power.
National Biofuel Policy (NBP)
To promote the use of biofuels in Malaysia, aiming to reduce dependency on fossil fuels and mitigate environmental impact.
National Energy Transition Roadmap (NETR)
To reduce reliance on fossil fuels, mitigate climate change impacts, and foster innovation and economic growth in the energy sector.
Sarawak Alternative Rural Electrification Scheme (SARES)
Program designed to encourage the adoption of renewable energy technologies in Malaysia, supporting sustainable development and reducing reliance on conventional energy sources.
List of Acts and Regulations of Renewable Energy
Act
-> Renewable Energy Act 2011
-> Sustainable Energy Development Authority Act 2011
-> Malaysian Biofuel Industry Act 2007 (Act 666)
-> Malaysian Biofuel Industry (Blending Percentage and Mandatory Use) (Amendment of Schedule) Regulations 2019 - PU(A) 129
-> Malaysian Biofuel Industry (Amendment of First Schedule) Order 2022 - PU(A) 354
-> Malaysian Biofuel Industry (Source of Production, Blend, and Permitted Activities) Regulations 2022 - PU(A) 363
Regulations
-> Renewable Energy (Technical and Operational Requirements) Rules 2011
-> Renewable Energy (REPPA) Rules 2011
-> Renewable Energy (Criteria for Renewable Resources) Regulations 2011
Types of Renewable Energy
Malaysia has a diverse range of renewable energy sources contributing to its sustainable energy goals, with key resources including solar, hydropower, biomass, biogas, and biofuels. These renewable energies are transforming Malaysia’s energy landscape across various sectors. In the power sector, renewables are helping reduce reliance on fossil fuels and support the transition to cleaner energy, while in the electricity sector, they provide alternative energy sources that contribute to a more resilient and sustainable grid. By leveraging these resources, Malaysia aims to achieve greater energy security and meet its environmental commitments.
Solar
Solar energy adoption in Malaysia accelerated with the 2011 Feed-in Tariff introduction. Solar generates electricity via photovoltaic panels and thermal energy through concentrator panels. The Large Scale Solar (LSS) Program was introduced by the Energy Commission of Malaysia (Suruhanjaya Tenaga) to promote the development of large-scale solar photovoltaic (PV) plants, reduce dependency on fossil fuels, and achieve the country’s renewable energy targets.
Hydropower
Hydropower is crucial for Malaysia's energy and climate objectives. It generates electricity by harnessing water movement through turbines. Hydropower stations include impoundment, diversion, and pumped storage types, contributing to sustainable energy.
Biomass
Biomass energy, derived from organic materials like plants and animals, offers renewable sources of electricity, heat, and transportation fuels, harnessing stored solar energy through photosynthesis.
Biogas
Biogas, derived from anaerobic digestion of organic materials like Palm oil mill effluent (POME), sewage, and landfill waste, is a key sustainable energy source in Malaysia, promoting environmental sustainability and resource efficiency.
Biofuels
Biofuels, like biodiesel from palm oil, power Malaysia's transportation sector, while biopower and bioproducts harness renewable biomass for electricity, heat, and diverse materials, promoting sustainable energy and resource efficiency.
RE Program in Malaysia
Renewable energy initiatives like LSS and NEM drive sustainability, integrating solar power and reducing costs.
FiT and SELCO schemes drive solar adoption, support cleaner energy, and lower electricity costs.
Large Scale Solar (LSS)
Large Scale Solar (LSS) is a competitive bidding programme to drive down the Levelised Cost of Energy (LCOE) for the development of large scale solar photovoltaic plant. LSS photovoltaic (PV) plant capacity is approved by the Commission, connected to either the Transmission Network or Distribution Network in Peninsular Malaysia, Sabah or Labuan.
Net Energy Metering (NEM)
The Net Energy Metering (NEM) concept is that the energy produced from the installed solar PV system will be consumed first, and any excess will be exported to TNB.
- on “one-on-one” offset basis for domestic and Government building category; and
- at System Marginal Price for other commercial and industrial customers
This scheme is applicable to eligible customers of TNB. The PV systems can be installed at available rooftops of car porch within their own premises.
Feed-in Tariff (FiT)
Feed-in Tariff (FiT) system obliges Distribution Licensees (DLs) to buy from Feed-in Approval Holders (FIAHs), the electricity produced from renewable resources (renewable energy) and sets the FiT rate. By guaranteeing access to the grid and setting a favourable price per unit of renewable energy, the FiT mechanism would ensure that renewable energy becomes a viable and sound long-term investment for companies, industries and also for individuals.
Self Consumption (SELCO)
Self-consumption (SELCO) applies when electricity is being generated for own usage and any excess is not allowed to be exported to the grid. The Government is encouraging individual, commercial and industrial consumers to install PV for their own consumption, looking to hedge against the rising cost of electricity.