Shifting Tides: Affordability of Malaysia's Energy Transition

Abstract

The Energy Commission of Malaysia (EC) harnesses the Energy Trilemma, focusing on security, affordability, and sustainability, to strategically navigate the nation's energy transition towards increasing the share of Renewable Energy (RE). This transition aims to balance the need for reliable and cost-effective energy while reducing carbon emissions and dependency on thermal sources. Despite the potential of RE to contribute to a sustainable energy pathway, there are significant challenges concerning the affordability of this shift, especially when compared to conventional coal plants. The study aims to examine the affordability aspect of RE through a SWOT analysis, assessing the strengths, weaknesses, opportunities, and threats associated with the transition from coal to renewable sources. Employing a qualitative approach, this research relies on structured interviews with experts from a key utility company to delve into the complexities of Malaysia's energy transition. The findings highlight the cost-effectiveness and innovative potential of RE, particularly solar power, against the backdrop of its intermittent nature and land acquisition costs. Moreover, the SWOT analysis points to opportunities for decentralized energy models and technological advancements that can ensure the affordability of solar energy. The research underscores the need for strategic partnerships and policy frameworks that support scalable and economically viable energy solutions, despite the high initial costs and reliance on tariff mechanisms. In conclusion, while coal plants currently offer more stable and cost-effective energy production, the future of Malaysia's energy affordability hinges on a balanced integration of renewable sources, addressing the highlighted SWOT elements. This integrated approach is vital for a sustainable energy economy that is both environmentally responsible and economically feasible.