Malaysia Advances Clean Energy Transition with Coal Phase-Out and Renewable Investments

The Malaysian government has reaffirmed its commitment to securing a sustainable, affordable, and reliable electricity supply while accelerating its transition to clean energy, according to the Energy Transition and Water Transformation Minister.

Currently, coal remains the dominant energy source in Peninsular Malaysia, accounting for 36.4% (12,183MW) of electricity generation due to its cost-effectiveness. However, the government has ceased approvals for new coal power plants following a decision by the Electricity Supply and Tariff Development and Implementation Committee (JPPPET) on 7 February 2023.

This policy shift aligns with Malaysia’s commitment under the Paris Agreement 2015 to reduce greenhouse gas (GHG) emissions intensity by 45% by 2030 and achieve net-zero carbon emissions by 2050.

To advance its sustainability goals, Malaysia is exploring alternative solutions, including mothballing and co-firing technologies, while investing in cleaner and renewable energy sources. The government is also assessing the feasibility of adopting nuclear power as part of its long-term energy strategy.