The Ministry of Economy of Malaysia has announced a new renewable energy target, aiming to reach 70% of renewables in the power mix by 2050, while also announcing the end of cross-border trade barriers for renewable energy. This higher target will require a more than tenfold increase in its capacity from 2023 to 2050. In 2021, the country had set a target to reach 40% of renewable energy in the power mix by 2035.
Malaysia estimates an investment of MYR637bn (US$143bn) to carry out the objective. The amount will be spent on grid infrastructure, energy storage systems and network system operating costs. The ministry has also allocated MYR50m (US$11.2m) to install rooftop solar systems for government facilities across the country over the next 6 months.
In addition, Malaysia will lift the ban on exports of renewable energy that was implemented in October 2021, as part of efforts to develop its clean power industry and boost non-fossil power generation.
In 2021, Malaysia produced about 17% of its electricity from renewable sources (16% from hydro, 1% from solar and 1% from biomass). The country also plans to reach carbon neutrality by 2050.
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