Over the past year, from June 2025 to May 2026, Malaysia's electricity consumption has been predominantly reliant on fossil fuels, with almost 80% of the electricity produced from coal and gas sources. Specifically, coal contributes over 40% to the electricity grid, while gas adds nearly 34%. Clean energy sources, while contributing less, play an essential role, accounting for about 22% of the total electricity mix. Hydropower is the most significant among the low-carbon sources, providing 17% of the electricity. Biofuels and solar energy present smaller shares, with biofuels responsible for almost 3% and solar providing close to 2%. The reliance on fossil fuels poses challenges for sustainability, highlighting the need for an increase in clean energy sources like solar and nuclear.

Is Electricity Growing in Malaysia?

In terms of growth, Malaysia's electricity consumption per person has seen a marginal increase. The latest measurements show a consumption of 5364 kWh per person, which slightly surpasses the previous record set in 2019 by about 26 kWh. However, when focusing on low-carbon electricity, Malaysia has experienced a slight decrease since the previous year. The latest low-carbon electricity generation amounts to 1155 kWh per person, marking a decline of 17 kWh from the 2025 figures. This decline in clean energy growth emphasizes the need for strategic investments in sustainable electricity generation to not only match but exceed demand with a greener mix.

Suggestions

To augment the share of low-carbon electricity, Malaysia can draw inspiration from various global and regional examples. For instance, France and Slovakia have excelled in leveraging nuclear power, with more than 65% of their electricity derived from this clean energy source. Similarly, the conducive conditions for solar energy in Nevada and Lebanon, which both achieve noteworthy results with solar energy constituting more than 30% of their electricity, showcase the potential for solar expansion. By investing in nuclear and solar energy infrastructure, Malaysia can significantly enhance its low-carbon electricity portfolio, gain energy independence, and make substantial strides in reducing its carbon footprint.

History

Historically, Malaysia's commitment to low-carbon electricity has been apparent since the 1980s through notable hydropower projects. The late 1990s saw fluctuations in hydropower output, with some years experiencing declines. However, there was a resurgence in the 2000s, marked by significant expansions with continuous growth through the 2010s. Noteworthy spurts happened mid-decade in 2016 and 2017, with significant increases of 6.1 TWh and 6.6 TWh, respectively. More recent advancements included a notable increase in biofuel generation in 2022. As of 2024, hydropower saw another uptick with an increment of 3 TWh, underscoring a sustained move toward expanding clean energy sources amid oscillations in past decades. To maintain momentum and mitigate past challenges, Malaysia should continue to explore further development of both traditional and emerging low-carbon technologies to secure a sustainable energy future.

Electricity Imports and Exports

Balance of Trade

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