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Renewable Energy Market in Malaysia

Renewable Energy Malaysia

Renewable energy has become an increasingly important topic in Malaysia, with the government and businesses looking to reduce the country's reliance on fossil fuels and increase its use of sustainable energy sources. The renewable energy market in Malaysia is experiencing steady growth, and there are several factors driving this growth.

Government Support and Policies

The Malaysian government has set a target of achieving 20% renewable energy generation by 2025. To achieve this goal, the government has implemented several policies and initiatives to support the development of renewable energy in the country. One such policy is the Feed-in-Tariff (FiT) system, which provides financial incentives to renewable energy producers for every unit of energy they generate and supply to the grid. The government has also established the Malaysian Green Technology and Climate Change Centre (MGTC) to promote the development and adoption of green technology and renewable energy.

Increasing Investment

The renewable energy market in Malaysia is attracting increasing investment from both domestic and foreign investors. In 2020, renewable energy investments in Malaysia reached RM4.55 billion, with solar energy accounting for the majority of the investments. This investment has been driven by the country's growing demand for energy, the government's support for renewable energy, and the declining costs of renewable energy technologies.

Solar Energy Malaysia

Solar Energy

Solar energy is the most significant source of renewable energy in Malaysia, accounting for more than 50% of the country's total renewable energy generation capacity. The country has excellent solar irradiation levels, making it an ideal location for solar energy production. The government's FiT system has also incentivized the development of solar energy projects in the country.

Hydroelectric Power

Malaysia's abundant water resources also make hydropower a viable source of renewable energy. The country has several hydroelectric power plants, which account for about 30% of its total renewable energy generation capacity. The government is also looking to expand its hydropower capacity by developing new projects in the coming years.

Hydroelectric Power Malaysia


While the renewable energy market in Malaysia is growing, there are still several challenges that need to be addressed. One of the main challenges is the lack of infrastructure to support renewable energy production and distribution. Malaysia's grid infrastructure is still heavily reliant on fossil fuels, which makes it difficult to integrate renewable energy sources into the grid. The country also lacks a comprehensive energy storage system, which limits the ability to store excess renewable energy for use during times of low production. Another challenge is the high upfront costs of renewable energy projects. While the costs of renewable energy technologies are declining, the initial investment required to set up a renewable energy project can still be significant. This can deter investors, particularly smaller businesses and individuals, from entering the market.

Renewable Energy Contractor Malaysia


The renewable energy market in Malaysia is experiencing steady growth, driven by government support, increasing investment, and the country's abundant natural resources. While there are still challenges that need to be addressed, the future of renewable energy in Malaysia looks promising. The government's continued commitment to renewable energy and the development of the necessary infrastructure will be critical in achieving the country's renewable energy targets and ensuring a sustainable energy future.

Where to Get Renewable Energy System Supplier and EPCC Contractor in Malaysia

Aathaworld is able to offer design, supply and build for all types of residential, industrial units, commercial buildings, factories, shop lots, offices, infrastructure, solar farms and parks, pools, fountains, roofing, home renovation, office refurbishment as a solar panel system supplier and solar system contractor (installer) in KL Kuala Lumpur, Selangor, Klang Valley, JB Johor Bahru, Penang, Malacca (Melaka), Seremban Negeri Sembilan, Perak, Pahang, Kuantan, Kelantan, Terengganu, Perlis, Alor Setar Kedah, as well as Sabah and Sarawak for East Malaysia; besides Malaysia, we are also able to be renewable energy power plant contractor, software and hardware supplier for other countries in Southeast Asia (SEA) countries, including Singapore, Myanmar (Burma), Cambodia, Vietnam, Laos, Thailand, Indonesia, Philippines, Brunei, Bangladesh as well as China, Taiwan, Hong Kong, Australia and New Zealand. Check with us so you can find out our new, greenfield, brownfield, maintenance, upkeeping, repair, design and build renovation services so you can inquire about us for some equivalent reference to inspire your design and project idea. Submit to us now for your project sourcing requirement, whether you are looking for solar farm or building, factory or power plant renovation or partly repair and refurbish as we can provide the best solution for your building, design, consultancy, procurement to construct at or call (WhatsApp) at +(60)11-7001 1003 (Monday to Friday) or +(60)11-1188 1003 (Saturday, Sunday & Public Holiday).

Solar Energy Contractor Malaysia

Photo credits: Media from Wix, chinadialogue, webuildvalue


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