In Malaysia, electricity consumption in 2024 predominantly relies on fossil fuels, with about 81% of electricity generated from coal and gas sources. Coal makes up almost 44% of this consumption, while gas constitutes nearly 37%. In contrast, low-carbon energy sources collectively provide about 19% of the country's electricity. Among these, hydropower is the highly leading source, accounting for over 16%, while solar energy contributes a modest 2%. There is vast potential for growth in the low-carbon sector to improve sustainability and reduce air pollution associated with burning fossil fuels.
To increase low-carbon electricity generation, Malaysia can look to successful examples from other countries. For instance, France and Slovakia have become leaders in nuclear power, generating around 68% and 62% of their electricity, respectively, from this clean energy source. Meanwhile, Denmark and Lebanon have made significant strides in wind and solar energy, with wind covering 52% and solar accounting for 31%. Malaysia could consider a multi-faceted approach, prioritizing the establishment of nuclear power infrastructure alongside expanding its solar and potential wind capacities, learning from these varied international contexts and adapting successful models to suit local needs.
Historically, Malaysia has seen varying development in low-carbon electricity, particularly in hydropower. Starting from the mid-1980s, the growth trajectory had its fluctuations; for instance, there were declines around 1990 and the late 1990s. However, from the early 2010s onwards, there was a considerable surge in hydropower generation, especially notable with significant increases in 2016 and 2017. In recent years, hydropower continued to grow steadily, alongside a budding solar sector, which contributed an additional 0.9 TWh of electricity in 2024. This history indicates an opportunity for Malaysia to enhance its clean energy capacity through strategic investments and technological adoption, ensuring a sustainable and future-forward electricity framework.