Malaysia exceeds 2025 renewable target at 32% capacity

Global energy investment reaches $2.3t.

Malaysia’s installed renewable energy capacity reached 32%, surpassing the 31% target set for 2025, according to a sector report by Maybank Investment Bank Berhad.

Global investment in energy transition rose to $2.3t in 2025, up 8% year on year (YoY), driven by electrified transport, renewable energy, and grid infrastructure spending.

Solar panel prices ranged between $0.11 to $0.12 per watt, up 20% to 30% from an average $0.09 per watt in the fourth quarter (Q4) of 2025, which the report said could pressure margins for engineering, procurement, construction and commissioning players. Solar panels typically account for about 30% of total solar EPCC project costs.

The report attributed the increase to higher polysilicon and silver prices and China’s planned cancellation of a 9% value-added tax export rebate for solar photovoltaic products effective April 2026, which has triggered front-loaded procurement.

Battery energy storage systems are expected to become more embedded in utility-scale programmes, with four grid-scale projects of 100MW/400MWh each awarded under the MyBeST programme.

The report said Large Scale Solar 6, expected to call for tender in first half of 2026, is expected to incorporate a mandatory BESS