Malaysia Accelerates Clean Energy Shift with Coal Exit and Renewable Energy Investments

Malaysia is taking decisive steps toward a cleaner energy future, reaffirming its commitment to a sustainable, affordable, and secure electricity supply. The Energy Transition and Water Transformation Minister announced that the country is accelerating efforts to decarbonize its power sector in line with its national and international climate goals.

Despite coal currently making up 36.4% (12,183MW) of electricity generation in Peninsular Malaysia—largely due to its low cost—the government has drawn a firm line in the sand. As of February 7, 2023, the Electricity Supply and Tariff Development and Implementation Committee (JPPPET) has halted approvals for any new coal-fired power plants.

This move supports Malaysia’s pledge under the Paris Agreement to cut greenhouse gas emissions intensity by 45% by 2030, with a long-term goal of achieving net-zero carbon emissions by 2050.

To facilitate this transition, Malaysia is exploring a mix of innovative strategies. These include mothballing existing coal infrastructure for future use, implementing co-firing technologies to reduce emissions, and scaling up investments in renewable and low-carbon energy sources. In parallel, the government is also evaluating the role nuclear energy could play in strengthening the nation’s energy mix over the long term.

This multifaceted approach marks a turning point in Malaysia’s energy narrative—one that prioritizes environmental stewardship without compromising energy security or economic growth.