From June 2025 to May 2026, fossil fuels supplied more than three-quarters of Malaysia’s electricity consumption, at about 78%. Coal accounted for roughly 43% and gas for 34%, making them the dominant sources. Low-carbon electricity supplied the remaining 22%, led by hydropower at 17%, followed by biofuels at nearly 3% and solar at about 2%. Malaysia therefore still depends heavily on fossil electricity, with considerable room to expand clean generation and reduce the climate-changing emissions and air pollution associated with fossil fuels.

Is Electricity Growing in Malaysia?

Malaysia’s electricity consumption is growing, but only slightly beyond its previous peak. The latest 2026 figure of 5,364 kWh per person exceeds the 2019 record of 5,338 kWh by just 26 kWh per person, or about 0.5%. Low-carbon electricity generation, however, has slipped to 1,155 kWh per person from its 2025 record of 1,172 kWh, a decline of 17 kWh, or roughly 1.5%. The small new consumption record is welcome, but the retreat in clean generation is concerning: stronger low-carbon growth is needed to support electrification and rising electricity demand, including from AI.

Suggestions

Malaysia can increase low-carbon electricity generation by accelerating solar deployment and developing a nuclear electricity programme alongside its existing hydropower base. Sri Lanka, a tropical Asian reference, generates about 15% of its electricity from solar, while Australia reaches around 21%, offering useful examples for expanding rooftop and utility-scale solar. For nuclear, Malaysia could study South Korea, where it supplies a quarter of electricity, and the United Arab Emirates, where it supplies a fifth, drawing lessons about workforce development, regulation and project delivery. France’s roughly two-thirds nuclear share further demonstrates how substantial clean electricity generation can become. Investment in electricity grids and storage would help Malaysia accommodate more solar while nuclear could provide steady low-carbon output.

History

Historically, hydropower has driven most of Malaysia’s low-carbon electricity expansion, although progress has been uneven. Generation increased by 1.7 TWh in 1984, while the 1990s mixed declines in 1990, 1996 and 1997 with gains in 1994 and a stronger 2.7 TWh increase in 1999. The 2000s brought another hydro decline in 2002, a recovery in 2006 and a 1.2 TWh biofuel increase in 2009. The strongest sustained hydro expansion came in the 2010s: annual gains from 2011 through 2014 were followed by especially large increases of 6.1 TWh in 2016 and 6.6 TWh in 2017. In the 2020s, hydro grew in 2020 and 2021, while biofuels added 3.3 TWh in 2022. A disappointing 1 TWh hydro decline in 2023 was followed by a welcome 3 TWh increase in 2024, reinforcing the importance of building a broader, steadily growing clean electricity supply.

Electricity Imports and Exports

Balance of Trade

* 12M = Last 12 months (Jun 2025 – May 2026) — a rolling 12-month period, not a calendar year.