A 1.5°C compatible pathway would require Malaysia to reduce its power sector’s emissions intensity by 73-79% from 2017 to 2030, (i.e. from 650 gCO2/kWh to 140-170 gCO2/kWh). The energy sector contributes 75% of Malaysia’s emissions, with the lion’s share coming from the power sector.
Aligning with a 1.5°C pathway would mean for Malaysia to focus on renewable energy and energy storage policies to decarbonise the power sector rather than following the past trends and current plans of replacing fossil fuels with fossil fuels.
Several policies support renewable uptake including a feed-in-tariff and the Green Technology Financing Scheme, however the latest Generation Development Plan (2021-2039) anticipates that fossil fuels will dominate the power supply for the foreseeable future.
To be 1.5°C compatible, renewable energy generation needs to reach 73-77% of the power mix by 2030. Malaysia’s current renewable energy target aims for 40% installed capacity by 2035.
Malaysia has 2.8 GW of coal in its pipeline, scheduled to replace decommissioned coal capacity which stands in contrast with the need to phase out coal by 2035, followed by a gas phase-out by 2035 to 2038.1 This would need to be replaced by renewable energy alternatives to avoid risks of stranded assets, high costs and carbon lock in.
Key power sector benchmarks
Renewables shares and year of zero emissions power Including the use of BECCS
- 2030 73 to 77% Renewable share
- 2039 99 % Renewable share
- 2040-2043 Zero emissions power