This is a best prospect industry sector for this country. Includes a market overview and trade data.
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 by implementing clean, sustainable, and renewable energy (RE). Malaysia aims to increase renewables, excluding hydropower, to 20 percent of the generation mix by 2025. As part of the process, Malaysia is expected to expand renewable capacity from 6 to 14GW, rising from 18 to 30 percent of the generation mix. 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 in its power mix by 2030.
The Energy Commission of Malaysia estimated the historical demand growth 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.
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 12-14, 2022
Oil and Gas Asia Exhibition (Malaysia) – September 13-15, 2022
Offshore Southeast Asia (Singapore) – November 15-17, 2022
ASEAN Solar Expo (Malaysia) – November 7-9, 2022
Resources of Malaysian Government Authorities
Ministry of Energy and Natural Resources
Ministry of Science Technology and Innovation