Abstract

In the last 10 years, Malaysia has aggressively moved towards a higher penetration of 20% of renewable energy (RE) in the Malaysian energy mix by 2025. Several incentives and initiatives have taken place with the aim of achieving the goals in terms of installed capacity and catching up with the leading countries in these sectors. Since 2011, Malaysia started the Feed-in-Tariff (FiT) before introducing Net Energy Metering (NEM) in 2017, and recently, another initiative known as NEM 3.0 has been introduced. This paper reviews all policies undertaken by the Malaysian government from 2011 to 2021 in spearheading the country to be on par with others, especially those in the Southeast Asian (SEA) region. The effectiveness of each policy on the growth of photovoltaic PV energy installation is highlighted, and the latest update on the NEM 3.0 policy is also discussed. A comparison of each approach in terms of installed capacity and system connection setup to the grid is also considered for the benefit and sharing of knowledge from one of the fastest-developing countries in the region.

Highlights

  • The focus on the renewable energy sector has increased significantly in the past ten years in Malaysia, even though it is considered an oil and natural gas supplying country [1].This is due to the increase in electricity demand as the population increases [2]

  • The first policy that supported the renewable energy in Malaysia was Feed-in Tariff (FiT) in 2011

  • This paper has provided a chronological review of Malaysia’s effort to become one of the countries with high solar PV energy penetration

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Summary

Introduction

The focus on the renewable energy sector has increased significantly in the past ten years in Malaysia, even though it is considered an oil and natural gas supplying country [1]. This is due to the increase in electricity demand as the population increases [2]. Malaysia implemented five energy policies: an extension of four fuel energy policies and renewable energy as the fifth policy This plan started with the goal of 5% of the energy mix to mitigate 70 million tons of CO2 over 20 years, beginning in 2005 [5]. This was built to support the governmental goals and to utilize

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