Situated just north of the equator, Malaysia is embarking on a transformative journey to upgrade its national energy grid by tapping into its abundant natural resource: sunlight. In recent years, the Southeast Asian nation has been significantly expanding its solar power capacity, with the aim of generating 20% of its electricity from renewable sources by 2025. Led by Yeo Bee Yin, the head of Malaysia’s Ministry of Energy, Science, Technology, Environment, and Climate Change (MESTECC), the country is determined to transition from its heavy reliance on fossil fuels to a greener and more sustainable energy landscape.

Currently, only 2% of Malaysia’s energy is derived from renewable sources like wind and solar power, as the nation heavily relies on limited fossil fuel resources such as oil, coal, and natural gas. Nevertheless, Bee Yin, a Cambridge-educated engineer turned lawmaker recognized as one of the World Economic Forum’s Young Global Leaders in 2019, remains resolute in her pursuit of making Malaysia’s renewable energy plan a reality.

Bee Yin emphasizes that Malaysians have taken their energy supply for granted, given the country’s abundant natural resources and consistent electricity availability. By implementing government initiatives, incentives, appropriate regulations, and facilitating capital market support, Bee Yin believes that vibrant private capital investment in the green industry can be fostered in Malaysia. The widespread implementation of her energy initiatives is projected to save Malaysia up to MYR 46.9 billion (USD 11.23 billion) in energy expenditures by 2030.

To achieve her ambitious targets, Bee Yin’s government has been collaborating with industry leaders to draft project proposals and study effective green energy policies implemented worldwide. The initial plans involve a range of programs designed to encourage environmentally friendly practices, including tax incentives to boost solar panel adoption by businesses and homeowners, nationwide net energy metering, and the establishment of large-scale solar (LSS) power plants to reduce the nation’s dependence on fossil fuels.

In 2019, the Energy Commission of Malaysia initiated a tender for a 500-MW grid-connected LSS project in Peninsular Malaysia, marking the third round of 500-MW solar tenders under the state’s LSS program. The LSS3 project, expected to commence operations in 2021, will supply power to utility company Tenaga Nasional Berhad through a power purchase agreement. The LSS tender process was introduced in 2018, replacing the Feed-in-Tariff system, and has facilitated the integration of small-scale solar power installations. Malaysia’s solar energy capacity has experienced significant growth, with an installed capacity of around 350 MW by the end of 2017.

The rapid development of Malaysia’s solar sector has attracted domestic and international energy companies, many of which have submitted proposals to support the government’s renewable energy goals. Even state-owned oil and gas supplier Petronas and Filipino utility company Meralco have expressed interest in expanding their renewable energy portfolios through major solar projects in Malaysia. Scatec Solar, a Norwegian solar power company, has already commenced commercial operations of its 65-MW Jasin plant in Malaysia. This is the first of three projects by Scatec Solar in the country, totaling USD 296 million in investments and bringing their operational assets in Malaysia to 130 MW.

In addition to large-scale LSS projects, Bee Yin is actively working to make solar energy more accessible to businesses and households. The launch of a new website for the Sustainable Energy Development Authority (SEDA) serves as an information portal, providing citizens with comprehensive details on solar installation requirements, benefits, incentives, and regulations. The website assists consumers in finding solar providers, calculating installation costs and savings, and staying up to date with the latest developments in solar energy.

With its ambitious plans and proactive approach, Malaysia is on a path to revolutionize its energy sector by harnessing the power of the sun. Led by Yeo Bee Yin, the country aims to generate a significant portion of its electricity from renewable sources, reducing its dependence on fossil fuels. By engaging with industry leaders, implementing effective policies, and attracting investments from both domestic and international players, Malaysia is poised to realize its renewable energy goals. The ongoing development of large-scale solar projects and the emphasis on making solar energy accessible to all demonstrate Malaysia’s commitment to a sustainable and greener future.