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Breaking Barriers: Paving the Way for Energy Transition in Malaysia

ByopinionJune 18, 20234 Mins read240

Solar energy will be Malaysia's largest contributor of renewable energy source. Photo by Chelsea on Unsplash.

By: Prof. Ir. Ts. Dr. Tiong Sieh Kiong

The enactment of energy transition from non-renewable to renewable energy sources has gained the attention of worldwide researchers due to the rapid depletion of fossil fuel and emission from consumption of fossil fuel has caused significant change in world climate. Consequently, the Paris Agreement has urged to reduce greenhouse gas emissions, reduce the incremental global temperatures and ambitiously envisaged that reaching net zero emission (NZE) by 2050. To achieve the goal of NZE, numerous initiatives of energy transition plans have been outlined in Malaysia such as Rancangan Malaysia Ke-12 (2021 – 2025), Bio-tenaga dan Dasar Agro Komoditi Negara (2021 – 2030), Malaysia Renewable Energy Road Map (2022 – 2035), Malaysia’s Energy Transition Plan (2025 – 2040) and TNB Sustainability Pathway 2050 (2021 – 2050). The security of energy, environment and social sustainability is achievable through transitioning into a more sustainable and low-carbon energy system. The realization of these plans requires the collaboration of industries, government, and academia, and their commitment to unlock breakthroughs in technologies and innovations. However, there are a number of challenges in the effective realization of energy transition goals.

One of the key challenges Malaysia faces in its energy transition is its heavy reliance on fossil fuels. Being one of the largest exporters of liquefied natural gas (LNG) globally and using LNG as one of the main energy sources, Malaysia’s economic growth is tied to this industry. Consequently, transitioning away from unsustainable fossil fuels is difficult due to their relatively lower social and economic costs when compared to expensive clean energy technologies. According to the International Energy Agency (IEA), without significant action, Malaysia’s energy-related CO2 emissions are projected to increase by 30% between 2018 and 2040. Nevertheless, the importance of exploring alternative energy technologies for sustainability becomes evident considering the economic risks, depletion of fossil fuels, high energy demand, and the escalating levels of greenhouse gas emissions.

On the other hand, effectively blending and optimizing the various available alternative clean energy resources for a successful energy transition and ensuring competitive environmental sustainability poses a challenge too. In Malaysia, two more commonly used renewable energy sources are hydro and solar power. However, their utilization is constrained by geographical terrain and limited land availability. Moreover, allowing the increased integration of intermittent renewable energy sources particularly solar power into the current electricity grids without modifications can jeopardize grid stability. Consequently, it becomes vital to implement energy storage systems and initiate intelligent demand-side management measures to fortify the electricity grid, which is currently lacking. Transforming the existing grid into a smart grid through the deployment of battery energy storage systems and related enabling technologies is essential to enhance grid resiliency.
Another challenge faced is related to political and regulatory measures. At present, there are no regulations and policy measures par¬ticularly in the context of the energy transition, including no carbon tax and matured carbon credit mechanisms in Malaysia to speed up energy transition with clean energy resources. Besides, resistance to changes in energy transition may arise due to the strict regulation of the energy sector by the government. The progress of energy transitions will be greatly impacted by government instability as the government has the right to cancel or approve large-scale renewable energy projects, raising global concerns about the commitment of Malaysia to renewable energy. A consistent and clear energy policy framework needs to be developed for investors and stakeholders to overcome the challenge. The implementation of relevant capability-building measures is required as well for social sustainability as increased job opportunities in carbon-free related industries will be observed during the transition period. The engagement between government, industry and civil society is essential for building the consensus in energy transition.

The challenges in realization of energy transition goals include new technology transfer and financial support. The hesitation of investors and financial institutions to fund Malaysia for renewable energy projects because of the risk associated with emerging technologies investment, and the concerns about political and economic stability. Government has to establish public-private partnerships to invest in renewable energy projects and provide financial incentives to boost private sector investment in such projects. The establishment of an exclusive national energy centre (NEC) is suggested to overcome issues such as lack of collaboration between stakeholders, established practical solutions, strategies, pathways and scenarios, in implementing and monitoring the energy transition of Malaysia.

The last challenge is public awareness and engagement in energy transition. Energy consumption habits of citizen greatly impacted the progression and Malaysia need public support in order to achieve NZE. Conducting awareness campaigns, and investing in public education since primary school or even at preschool level on the topics of the benefits of renewable energy application allow the citizen to understand more about the necessity of energy transition. Indeed, the existing workforce in the market needs to be educated and prepared too for the transition towards the adoption of cleaner energy sources.

In order to accomplish NZE by 2050, energy transition plan is to be accelerated. The plan of way forward in short-term, medium-term, long-term and beyond for Malaysia’s energy transition has been aspired and is briefly illustrated in Figure 1, stating the energy transition plan and targets in achieving net zero emission and clean environment for the country.

^{Figure 1: Plan, Target and Way Forward for Energy Transition in Malaysia}

In conclusion, the success of energy transition in Malaysia is significantly depending on the government, industries and society to reach the goals stated in short-, medium-, long-term and beyond. The challenges have to be addressed accordingly to ensure that energy transition contributes to economic advancement with inclusivity that reflects the goals of equity, fairness and equality. The energy transition will be resilient with strong political commitment, stringent policy and regulation measures and active participation of all sections of society. Sustainable economic growth in Malaysia is regulated by the success of energy transition and Malaysia should move forward to keep up with other countries in achieving the goal of NZE by 2050.

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^{The author is the Director, Institute of Sustainable Energy (Higher Institution Centre of Excellence), Universiti Tenaga Nasional (UNITEN). He can be reached at siehkiong@uniten.edu.my}