Malaysia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in malaysia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Renewable Energy
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Market Overview 

Malaysia has traditionally depended on conventional power generation, including natural gas, coal, and hydropower. As a signatory nation to the Conference of Parties to the United Nations Framework Convention on Climate Change, Malaysia has pledged to reduce its greenhouse gas emission intensity of GDP by up to 45 percent by 2030. The government has further committed to achieve net zero greenhouse gas emissions as early as 2050 by implementing clean, sustainable, and renewable energy (RE). Malaysia has committed to increase renewable energy composition to 70 percent of the total generation capacity by 2050. As part of the process, Malaysia is expected to expand renewable capacity from 6 to 14GW.  In Sarawak, the government has adopted the most ambitious climate initiatives among the Malaysian states and has announced targets to achieve over 70 percent RE use by 2030. 

 The Energy Commission of Malaysia estimated the historical demand growth trend for electricity in Malaysia to be around 2.5 percent per year. The Malaysia Generation Development Plan 2019 projected that electricity demand for 2020-2030 is expected to grow at 1.8 percent per annum. Over this same period, Malaysia will need about 10.0 GW of new capacity to meet its demand growth, which will require replacing retiring plants and ensuring system reliability. The government has also announced that it will not approve any new coal-fired power generation plants.

Opportunities

Battery Storage

The Malaysian government is seeking to expand battery energy storage systems (BESSs) with a total capacity of 500MW from 2030 onwards to reach ambitious solar energy targets. These battery energy storage systems will enable storing of excess energy generated by solar panels for later use. Market opportunities for U.S. companies exist for utility-scale battery storage systems and energy storage solutions for the power sector – mainly hydropower and solar power. 

Energy Efficiency & Digitalization

Many commercial and industrial buildings are adopting energy digitalization, with business owners looking to lower energy costs mainly through solar setups. Digitization can enable “smart” industrial facilities by providing new sources of flexible loads for energy needs. Market opportunities for U.S. companies exist in cloud-based and Artificial Intelligence of Things (AIoT)-enabled source that connects energy data within the building and operations data in a single platform, converting data into business intelligence. 

 Smart Grids

The Malaysian government is seeking ways to grow its national grid to be a smart, automated, digitally-enabled grid. Malaysia is looking for solutions that ensure greater cost efficiency, reliability, and customer satisfaction than can be achieved with centralized grids. Market opportunities for U.S. companies exist for smart meters, grid technologies and systems, and transmission & distribution systems. 

Renewable energy equipment 

U.S. exporters have opportunities when supplying equipment to support measures to produce energy from renewable resources for on-site consumption. Those resources can include biogas, hydropower, solar energy, and wind power equipment that aids in power optimization and performance tracking. 

Trade Events 

Int’l Greentech and Eco Products Exhibition and Conference Malaysia (IGEM): October 4-6, 2023 

Oil and Gas Asia Exhibition (Malaysia) – September 13-15, 2023

Offshore Technology Conference Asia 2024: Feb 27 – Mar 1, 2024  

Asia Pacific Green Hydrogen Conference & Exhibition 2024: June 11 – 13, 2024

 

Resources of Malaysian Government Authorities 

Department of Environment 

Ministry of Natural Resources, Environment and Climate Change

Ministry of Science Technology and Innovation 

Sustainable Energy Development Authority 

Tenaga Nasional Bhd  

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