Renewables to drive 52% of Malaysia’s power by 2050

This could make Malaysia’s power sector vulnerable to fuel price swings and reserve depletion.

Renewable energy sources are projected to contribute approximately 52% to Malaysia’s power generation mix by 2050, according to energy think tank Ember. The remaining 48% will be supplied by gas.

“This could leave Malaysia’s power sector vulnerable to global fuel price volatility and domestic reserve depletion,” it noted.

To address these vulnerabilities, the government is considering increasing its renewable energy targets to diversify the energy mix more effectively.

The National Energy Transition Roadmap (NETR) has outlined Malaysia’s commitment to achieving 70% renewable capacity by 2050. Solar power is expected to lead this shift, with gas serving as a transitional fuel away from coal.

Ember said that harnessing Malaysia’s abundant solar resources could enhance both affordability and security in the power sector. Solar power is well-suited to meet daytime energy demands, whilst non-solar hours could be managed through hydropower and expanded energy storage solutions. 

Despite the high costs associated with energy storage technologies like battery energy storage systems (BESS), they are deemed essential for managing increased solar loads and upgrading grid infrastructure.

Moreover, a gradual shift towards solar power could also help mitigate the risk of rising electricity tariffs due to fossil fuel price volatility. Policies promoting solar growth and BESS adoption across Peninsular Malaysia, Sabah, and Sarawak are deemed crucial to support this transition. These measures will enable each region to contribute effectively to the national renewable energy targets.