In 2023, the electricity consumption in Malaysia is predominantly reliant on fossil fuels, accounting for more than 80% of the total generation. Nearly half of the electricity comes from coal, while gas contributes close to another third. In contrast, low-carbon or clean energy sources constitute roughly 19% of the electricity sector. Hydropower dominates this segment with close to 17%, while solar energy makes up only a small fraction, at about 2%. This heavy reliance on fossil fuels presents challenges, including climate change impacts and air pollution, underscoring the need for a shift towards cleaner electricity sources.
Malaysia can enhance its low-carbon electricity generation by learning from other countries' successful experiences. Countries like France, Slovakia, and Ukraine have significantly leaned on nuclear power, with shares of 67%, 60%, and 55% respectively. For Malaysia, investing in nuclear energy would be a viable strategy to substantially reduce its dependence on fossil fuels while offering a stable and large-scale clean energy source. Additionally, Malaysia could draw inspiration from countries such as Denmark and Uruguay, where wind power fulfills significant proportions of their electricity needs—59% and 36%, respectively. Implementing a diversified strategy that combines both nuclear and solar development, following the examples from solar-rich countries like Chile and Australia with around 20% solar energy contribution, would also be beneficial for Malaysia's green energy transition.
Looking back at the history of low-carbon electricity in Malaysia, hydropower has seen various shifts over the years. In the mid-1980s, there was a modest increase with an additional 1.7 TWh in 1984 and 0.8 TWh in 1987. However, the 1990s saw fluctuations, with some years experiencing declines, such as a notable reduction of 1.3 TWh in 1990. The early 21st century marked a turning point with variable yet overall upward trends. Significant growth occurred in the mid-2010s, with a substantial rise of 6.1 TWh in 2016, followed by 6.8 TWh in 2017. In recent years, solar energy has started to make a mark, with a small but notable increase in 2019. Overall, while there have been ups and downs, the trajectory towards increasing low-carbon electricity generation is promising.