Malaysia builds national action plan to achieve energy transition targets

Malaysia is drafting a national energy efficiency action plan for 2026 - 2035 (NEEAP 2.0) to continue efforts to achieve energy transition targets, its Deputy Prime Minister Fadillah Yusof has said.

He told the recent Bumiputera Economic Congress that the Government expects more job opportunities along with business potential and investment will be created thanks to NEEAP 2.0.

In August 2023, Malaysian Prime Minister Anwar Ibrahim launched the National Energy Transition Roadmap (NETR), which outlined the country’s efforts and commitment towards achieving net zero greenhouse gas emissions by as early as 2050.

Deputy PM Yusof said the NETR proves the Government’s determination in implementing the energy transition initiative from a traditional fossil fuel-based economy to a high-value green one.

He noted that the Malaysian Government has set a commitment to increase the share of renewable energy capacity in the country’s electricity supply to 70% by 2050, compared to 25% currently. This effort requires cooperation and the involvement of the Government, the private sector, and the people to ensure the success of all renewable energy initiatives and programmes to achieve the target.

Efforts to realise the energy transition target will be done comprehensively based on careful consideration of several capacity factors such as the grid system, demand for green electricity supply, economic spillover value, and consumers’ willingness to pay.

Several initiatives will be implemented, including building solar power plants to increase the supply of green electricity at a reasonable cost, and developing a regional grid system under the ASEAN Power Grid initiative.

The implementation of various initiatives could open up more business opportunities and new economic potential to be utilised and enjoyed by all parties, including small and medium enterprises, according to the Deputy PM.