Malaysia Renewable Energy Market Size (2024 - 2029)

Malaysia Renewable Energy Market Size Summary

The renewable energy market in Malaysia is experiencing a resurgence following the setbacks caused by the COVID-19 pandemic, with a notable shift towards solar energy. The government's strategic initiatives and supportive policies, such as feed-in tariffs and power purchase agreements, are pivotal in fostering the growth of renewable energy sources. These measures, coupled with Malaysia's geographical advantage for solar energy production, are driving the expansion of solar photovoltaic (PV) installations. The declining costs of solar PV technology further enhance its attractiveness, making it a dominant force in the country's renewable energy landscape. Despite challenges from alternative clean energy sources like gas-fired power plants and nuclear projects, Malaysia's ambitious solar energy targets and innovative business models, such as solar leasing, present significant opportunities for market growth.

The Malaysian government's commitment to achieving a substantial share of renewable energy in its energy mix is evident in its ambitious targets and investment plans. With a goal to derive a significant portion of its energy from renewable sources by 2025, Malaysia is poised to attract considerable investments through a combination of government funding, public-private partnerships, and private financing. The implementation of institutional reforms and incentives like the Green Technology Financing Scheme and the Green Investment Tax Allowance further bolster the sector's growth. The regulatory framework's streamlining has reduced barriers for developers, facilitating the development of renewable energy projects. As a result, the market is expected to see continued expansion, with key players like JA Solar Technology Co. Ltd and Solarvest Holdings Berhad playing significant roles in this evolving landscape.