Renewable Energy Programmes

As Malaysia’s fifth fuel, renewable energy is expected to be a major energy source. The Government’s long-term commitment and strategy targets key sectors and initiatives to stimulate RE activities. The establishment of the Energy Commission ensures all energy forms and options are viable for the market. The Malaysian Energy Centre (PTM) plays a lead role to assist industry and government to develop RE. And the Centre for Education and Training in Renewable Energy Efficiency (CETREE) disseminates information and reinforces awareness on all aspects of EE and RE.

Ministry of Energy, Water and Communications (MEWC) - Established in 2004 to replace the former Ministry of Energy, Communications and Multimedia, its new role is to administer and manage the nation's energy, communications, postal services and water functions. MEWC has shifted from being a service provider to a policy formulator and service regulator for the Energy, Water and Communications sectors and facilitates the growth of these industries to ensure the availability of high quality, efficient and safe services at a reasonable price to consumers throughout the country. 

Energy Commission – The EC is responsible for creating and enforcing a regulatory framework for the achievement of a reliable, efficient and safe energy supply industry to enhance economic growth and sustainable development. It protects consumers’ interests, ensures a competitive and efficient marketplace. Besides advising on energy matters, the EC also promotes the use of renewable energy and the conservation of fossil fuels.

Malaysian Energy Centre (PTM) – The rationale behind PTM's establishment is to fulfill the need for a national energy research centre to co-ordinate activities related to energy planning and research, energy efficiency, technological research and development within the energy sector. It has three divisions to assist in energy projects, research and policies: Corporate Affairs and Business Development; Energy Industry and Sustainable Development; and Policy Analysis and Research Management.


Centre for Education and Training in Renewable Energy Efficiency (CETREE) – CETREE’s main objective is to enhance awareness on RE and EE in Malaysia by improving and increasing energy curriculum in primary and secondary schools, universities and among energy professionals as well as information for the general public. Activities are designed and structured in such a way to address each target group since there is an obvious need to increase awareness amongst the public, private sector and government officials on the applications and benefits of RE and EE. 

The launch of the Small Renewable Energy Power Programme (SREP) in 2001 kicked-off the Government’s policy implementation and intensified research into RE utilisation in power generation. With a primary objective to get small power plants connected to the power grid, SREP supports biomass and biogas power production. Small energy producers can sell electricity to the distribution grid using purchase agreements to negotiate directly with utilities. 

Private companies can choose several options when considering investing in RE projects. First, companies will receive tax and duty exemptions to start and expand their businesses. And power generation through co-generation technology is given special preference. Based on a government study, viable tariffs for RE grid connection are in the range of 14 to 17 sen per kWh, more so for existing than new plants.

The Special Committee on Renewable Energy advises that companies need to fulfil some requirements for grid connection:

• Plant Location – All plants should be within 10 kilometres from the nearest medium voltage interconnection point to the grid.

• Price – Purchase agreements with relevant utilities are on a “willing buyer, willing seller” basis.

• Licence Period - RE electricity producers receive 21-year licences with a stipulation to limit sales to a maximum of 10 MW to the grid.