Policy Paper No 64
The Future of Malaysia’s Energy Mix
Author: Prof. Renato Lima-de-Oliveira and Mathias Stroh Varming
This paper looks at the energy industry of Malaysia which has, paradoxically, recorded both the increase of coal and renewable energy in its matrix. It is in this context that the government will now need to consider the future of energy policy as it develops the 12th Malaysia Plan. Investments in the energy sector, such as power plants, are designed to have a useful life of decades, therefore decisions taken today will impact future generations for years to come.
This paper considers the policy choices in relation to deciding on the energy mix for Malaysia:
- Part 1 outlines the development of Malaysia’s energy policy, which has resulted in the current energy mix;
- Part 2 assesses Malaysia’s renewable energy commitments and current policies to meet these targets; and
- Part 3 assesses the choice of natural gas and coal as bridging fuels to support the transition to renewables. It also discusses the role of a new national energy policy to support the country in adapting to the ongoing energy transition, seizing new business opportunities in green technologies, and leading in sustainability.