Malaysia is steadily emerging as a regional leader in renewable energy innovation. From government-backed initiatives to private sector commitments, the nation is taking confident steps toward reducing its carbon footprint and embracing a more sustainable future. This article explores renewable energy examples in Malaysia, including a detailed highlight of Ajinomoto Malaysia’s contribution to green energy efforts.

Understanding Renewable Energy in Malaysia

Renewable energy sources in Malaysia primarily include solar, hydro, biomass, and biogas. These sources are key to achieving the country’s Low-Carbon Nation Aspiration 2040, which is in alignment with the 12th Malaysia Plan. Through strategic implementation and growing corporate responsibility, Malaysia is establishing a robust framework for clean energy transition.

Solar Energy: Malaysia’s Leading Renewable Resource

Malaysia, located near the equator, receives abundant sunshine throughout the year—this geographical advantage positions solar energy as one of the most promising renewable resources.

Large-Scale Solar Photovoltaic (LSSPV) Projects

The Large-Scale Solar (LSS) program, initiated by the Energy Commission (Suruhanjaya Tenaga), has rolled out several phases. It aims to boost solar power capacity up to 2,457 MW by 2025. Major solar farms such as those in Kedah, Negeri Sembilan, and Selangor are already operational, powering thousands of homes and industries.

Rooftop Solar Initiatives

The Net Energy Metering (NEM) scheme allows businesses and homeowners to install rooftop solar panels and offset their electricity bills. This decentralized model supports energy resilience while reducing dependence on fossil fuels.

Hydropower: Tapping into River Potential

Hydropower remains a significant contributor to Malaysia’s renewable energy mix. More than 50% of Sarawak’s electricity is generated through hydroelectric dams, making the resource vital for clean energy.

Bakun and Murum Hydroelectric Plants

Sarawak Energy manages Bakun (2,400 MW) and Murum (944 MW) hydroelectric plants, two of Southeast Asia’s largest. These massive projects contribute clean power to local industries and households, helping Malaysia avoid millions of tons of CO₂ emissions annually.

Biomass and Biogas: Waste to Energy Solutions

Malaysia’s strong agricultural sector, particularly palm oil production, presents ample opportunity for biomass and biogas energy conversion.

Biomass Energy

Biomass energy comes from burning agricultural waste such as palm kernel shells, empty fruit bunches, and rice husks. Companies like FGV Holdings Berhad and Sime Darby Plantation have invested in biomass plants that provide sustainable electricity to palm oil mills and rural communities.

Biogas Energy

Biogas, produced from the anaerobic digestion of organic waste, is widely adopted in palm oil effluent treatment plants. The government’s Feed-in Tariff (FiT) scheme under SEDA Malaysia encourages biogas projects by offering fixed rates for electricity generated from these sources.

Ajinomoto Malaysia: A Corporate Example of Renewable Energy Adoption

Ajinomoto (Malaysia) Berhad has become a shining example of how the private sector can integrate renewable energy into operations. With a long-standing commitment to environmental responsibility under the Ajinomoto Group Creating Shared Value (ASV) model, the company has undertaken multiple green energy projects.

Solar Photovoltaic (PV) Installation

Ajinomoto Malaysia installed solar PV systems at its factory in Bandar Enstek, Negeri Sembilan. The solar panels generate clean electricity, helping the company reduce carbon emissions while reducing operational costs.

Steam Energy Recovery

The company also utilizes waste heat recovery systems to reuse heat from production processes. This reduces fuel consumption and energy wastage, contributing to overall energy efficiency.

Energy Monitoring and LED Upgrades

Ajinomoto has implemented a real-time energy monitoring system, enabling smarter energy use across departments. Additionally, replacing conventional lighting with LED technology has improved energy efficiency further.

These proactive strategies show how large manufacturers can integrate renewable energy practices seamlessly into their operations while aligning with global sustainability goals.

Government Policy and Incentives Driving Renewable Energy

Malaysia’s progress in renewable energy is driven by strategic policies and financial incentives that encourage adoption across sectors.

National Renewable Energy Policy and Action Plan (NREPAP)

The NREPAP outlines Malaysia’s commitment to increase renewable energy contribution to 20% of total electricity generation by 2025. This includes policies on infrastructure, financial support, and investment opportunities.

Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE)

These incentives are available for companies involved in renewable energy, including solar power generation, biomass conversion, and energy-efficient technology deployment.

Renewable Energy Certificate (REC) Market

Malaysia also supports the renewable energy certificate system, enabling companies to purchase certificates as proof of sustainable energy usage. This system promotes transparency and accountability in corporate energy consumption.

Challenges in Renewable Energy Adoption

While progress is strong, Malaysia faces a few key challenges:

• High upfront costs of installation and equipment.
• Intermittency issues with solar and hydro during monsoon seasons.
• Grid integration and storage for renewable power.
• Lack of awareness among SMEs regarding government incentives and support.

However, consistent government engagement, innovation, and public-private partnerships are progressively overcoming these hurdles.

Future Outlook: Malaysia’s Clean Energy Roadmap

Malaysia’s National Energy Transition Roadmap (NETR) and 12th Malaysia Plan outline a structured transition towards cleaner, low-carbon energy sources. The focus includes:

• Increasing renewable energy capacity to 31% by 2025 and 40% by 2035.
• Emphasizing energy efficiency in industrial and residential sectors.
• Enhancing R&D investments in green technologies.
• Creating green job opportunities and skills development.

The roadmap aims to position Malaysia as a leader in ASEAN’s renewable energy landscape, strongly emphasizing innovation, inclusion, and long-term sustainability.

FAQs

1. What are the main types of renewable energy used in Malaysia?

Malaysia primarily uses solar, hydropower, biomass, and biogas as renewable energy sources. Each plays a key role in reducing the country’s dependence on fossil fuels.

2. How is solar energy being developed in Malaysia?

Solar energy is developed through large-scale solar farms under the LSS program and decentralized rooftop solar installations supported by the Net Energy Metering (NEM) scheme.

3. What is Ajinomoto Malaysia’s role in renewable energy?

Ajinomoto Malaysia has installed solar PV systems, implemented waste heat recovery, and adopted LED lighting and real-time energy monitoring to reduce its carbon footprint, aligning with the group’s sustainability mission.

4. Are there any government incentives for renewable energy?

Yes. Malaysia offers GITA, GITE, and FiT schemes to promote investment in green technology and sustainable energy projects.

5. What challenges does Malaysia face in renewable energy adoption?

Challenges include high capital costs, intermittency, grid integration issues, and limited business awareness. However, proactive government support is addressing these issues.