Malaysia REC Market Assessment and Opportunities for Regional Integration

Highlights 

• Malaysia is leading the way in REC development: Driven by strong policy support for renewable energy (RE), abundant RE resources, and demand from multinational companies, Malaysia has a thriving REC market with both voluntary and bundled REC options.
• Significant shift towards RE: Malaysia’s National Energy Transition Roadmap targets renewables making up 70% of the total primary energy supply by 2050, with solar energy playing a dominant role.
• Decentralised electricity governance empowers states: Sabah and Sarawak have the autonomy to regulate their electricity sectors, including the development of REC markets, allowing for tailored approaches to RE development.
• Diverse stakeholders drive the REC market: Utilities, IPPs, government agencies, brokers, corporations, and international organisations play crucial roles in shaping Malaysia’s REC market.
• Regional integration presents opportunities: Harmonising REC markets across Peninsular Malaysia, Sabah, and Sarawak can create a larger, more efficient market and facilitate cross-border trade.