Malaysia's Renewable Energy Transition Expected to Generate RM4.3 Billion in Investment

Malaysia anticipates a significant boost to its renewable energy sector, with RM4.3 billion in investments expected from 42 approved applications under the 2026 Feed-in Tariff (FiT) e-bidding process. Economy Minister Akmal Nasrullah Mohd. Nasir announced that these projects will also stimulate demand for local gas engines and boilers worth RM617 million and create an estimated 7,738 indirect jobs.

The approved applications, reviewed by the Sustainable Energy Development Authority (SEDA Malaysia), involve a total net export capacity of 331.355 megawatts (MW). These include 16 biogas projects totaling 26.185MW, 11 biomass projects amounting to 135.94MW, and 15 small hydropower projects with a capacity of 169.23MW. The projects are slated to commence operations between 2029 and 2030, reflecting a strategic move to enhance investor confidence and strengthen the domestic supply chain.

To broaden the adoption of renewable energy, the government has diversified its sources to include biomass, biogas, and small hydropower under the FiT mechanism. Project selection considered factors such as location suitability, offered prices, and technical aspects, with particular attention to the available ecosystems and resources for biomass and biogas projects. This aligns with the National Energy Transition Roadmap (NETR), which targets 70% renewable energy in the installed capacity by 2050, with an interim goal of 35% by 2030, requiring substantial investment in generation, grid infrastructure, energy storage, technology, and skills development.

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The approval is expected to increase investor confidence in the renewable energy sector, strengthen the domestic supply chain, and create economic value for the country.