close
close

Malaysia to achieve 40% renewable energy by 2035 – report

Posted on by darion

Bakun Dam in Malaysia. Source: pHotosHo0x.

Malaysia to achieve 40% renewable energy target by 2035, new Malaysian study finds Power TechnologyThe company’s parent company, GlobalData.

In 2021, the Ministry of Energy and Natural Resources Malaysia (KeTSA) set a target of achieving 31% renewable capacity by 2025 and 40% by 2035. Later, in the National Energy Policy (2022-2040), the government set a target of achieving 18.4 GW of renewable capacity by 2040.

Renewables currently account for 13.3% of the country’s total capacity. If the current rate of growth continues, Malaysia is expected to reach 18.2% renewable capacity by 2025 and 36.4% by 2035, according to GlobalData.

The data and analytics firm’s latest report – Malaysia Energy Market Size, Trends, Regulations, Competitive Landscape and Forecasts 2024-25 – states that Malaysia has “rich, untapped renewable energy potential” that it can develop “to achieve energy security while addressing climate change challenges”.

Sudeshna Sarmah, Energy Analyst at GlobalData, said: “In 2016, the Malaysian Energy Commission Suruhanjaya Tenaga introduced a large-scale solar programme with a total allocation of 1.25 GW for the period 2017-2020, which led to an accelerated growth of grid-connected PV systems. In addition, the Net Energy Metering programme led to the growth of the distributed renewable energy market.”

Currently, most of the country’s renewable energy comes from solar sources, bioenergy and small hydropower plants.

Get access to the most comprehensive company profiles on the market, powered by GlobalData. Save hours of research. Gain a competitive advantage.

Company Profile – Free Sample

Your download email will arrive shortly

We are confident in the exceptional quality of our company profiles. However, we want you to make the best decision for your business, which is why we offer a free sample that you can download by submitting the form below

By GlobalData







Please visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information about your rights in relation to your personal data and how you can opt out of future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address provided is your corporate email address.

There is only one small onshore wind farm of 0.2 MW in the country, as the region’s capricious off-season wind speeds are not complementary to the energy source. Nevertheless, according to GlobalData, “a few small wind projects could still be significant.”

GlobalData highlights that the Malaysian government has taken a number of measures to support renewable energy sources in the country, including extending the green investment tax credit and income tax exemption on green investments until 2023. The government has announced an income tax exemption for solar leasing companies, which will be valid until December 2026.