Malaysia’s Deputy Prime Minister Fadillah Yusof mentioned on Oct. 6 that the government is exploring ways to deregulate the national grid to export low-carbon energy to other countries. (Photo: Fadillah Yusof)
Malaysia is accelerating its efforts to achieve net-zero emissions by 2050, with a target to increase the share of renewable energy (RE) in its power mix to 70%.
The country is also exploring the possibility of opening up green energy exports and plans to expand its national grid to meet the growing demand for clean electricity, particularly for electric vehicle (EV) charging stations, said Deputy Prime Minister Fadillah Yusof.
Malaysia targets 31% renewable by 2025
In a move to facilitate green energy transactions, the Malaysian government opened its national grid in September, enabling corporate users to directly engage with renewable energy companies. This initiative is expected to help meet the increasing electricity needs of data centers, which are projected to require 7 gigawatts (GW) of power by 2030. The opening of the grid is seen as a pivotal step towards making Malaysia’s electricity market more competitive and market-driven.
On Oct. 6, Deputy Prime Minister and Minister of Energy and Natural Resources, Fadillah Yusof, discussed the upcoming 2025 federal budget in Parliament and mentioned that there could be further deregulation of the national grid to allow low-carbon energy exports to other countries. However, he emphasized that the priority would be to meet domestic demand for green energy, and any surplus would be available for export. Additionally, the use of the grid by third parties will be closely monitored to ensure its effectiveness.
In 2023, Malaysia's renewable energy generation exceeded 10.4 GW, accounting for 25% of the country’s total power production. The government aims to increase this share to 31% by 2025. Fadillah also noted that the government is exploring various energy sources to meet the nation's future energy needs.
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Grid plays a key role in Malaysia's renewable energy development. (Photo: iStock)
EV sales surge triggers expansion of charging stations
Fadillah further announced that the strengthening of the national grid to meet the power demands of EV charging stations is now part of the Incentive-Based Regulation (IBR) framework and will be incorporated into the capital expenditure plans of Tenaga Nasional Berhad (TNB), Malaysia’s state-owned power company. TNB will play a key role in upgrading and expanding the national grid to support the country's energy transition.
In addition to the Ministry of Energy and Natural Resources, other government departments including the Ministry of International Trade and Industry (MITI) and the Ministry of Natural Resources, Environment and Sustainability (NRES) are also developing incentive programs and policies to support the growth of EVs and charging infrastructure.
Currently, Malaysia has 3,171 EV charging stations, with a target of expanding to 10,000 by the end of 2025. In the first half of this year, 6,617 battery-powered electric vehicles were sold, a significant 112% increase compared to the same period last year. The government is confident that it will meet its target of having electric vehicles account for 20% of total car sales by 2030.
According to data from the Malaysia Green Technology and Climate Change Corporation (MGTC), the ideal ratio of charging facilities to electric vehicles is 1:9.
Shell's EV charging station in Malaysia. Currently, Malaysia has 3,171 EV charging stations, with a target of expanding to 10,000 by the end of 2025. (Photo: Shell Malaysia)
Source: Bernama、The Edge Malaysia、Malay Mail、Carlist
