The sustainable use of energy has been given increasing priority in Malaysia in recent years. One of the latest initiatives launched by the Government of Malaysia is the National Energy Policy 2022 – 2040 ("NEP"). The NEP recognises the energy sector as a key source of national income and seeks to set out targets, action plans and initiatives with the aim of future-proofing the energy sector in Malaysia to reap the economic advantages arising out of the structural shift in the trend of energy systems towards cleaner sources of energy.
The NEP sets out specific targets which include efforts to: (i) increase the total installed capacity of renewable energy; (ii) increase the amount of renewable energy supply as a percentage of the total primary energy supply in the country; (iii) increase the percentage of electrical vehicle share in the country; (iv) increase the percentage of residential, commercial and industrial energy efficiency savings, and (v) to reduce the percentage of coal use in installed capacity. These targets are intended to usher the nation toward becoming a low carbon nation by 2040.
The strategies adopted to achieve the objectives of the NEP cover the optimisation of energy resources, the stimulation of growth and market opportunities, the enhancement of environmental sustainability in the use of energy, and ensuring fiscal sustainability and energy security (i.e. the uninterrupted availability of energy sources at an affordable price). The NEP also outlines 12 strategies and 31 action plans to implement its objectives. These action plans include measures which involve enhancing solar, hydroelectric and bioenergy resources and enhancing access to renewable energy by businesses.
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