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  • Writer's pictureNg Yew Weng

Clean Energy in Malaysia - Importance & Benefits

by Ng Yew Weng    Updated: Feb 26, 2024 10:12 AM

Table of Contents:

What does clean energy mean?

The most common examples of clean energy

 The benefits of clean energy

The importance of clean energy in Malaysia

The future of clean energy in Malaysia

 Is clean energy really clean?

How can we get clean energy?

Progressture Solar: net-zero partner and clean energy provider


Malaysia is making significant progress in developing its clean energy landscape. Through international emissions reduction pledges and national initiatives to drive the energy transition, Malaysia is showcasing its commitment to reaching Net Zero and achieving a 40% renewable energy capacity in the energy mix by 2035.

At Progressture Solar, we have successfully managed over 740 completed and ongoing clean energy projects in Malaysia, resulting in the generation of 78,840MWh of clean energy and the prevention of 59,760 tonnes of carbon emissions annually. Based on our extensive experience within the energy sector, here’s the definitive guide to clean energy in Malaysia.

What Does Clean Energy Mean?

“Clean energy” or “carbon-free energy” refers to electricity generated from sources that do not emit greenhouse gases. While there is some overlap, it is important to note that “clean energy” is not synonymous with “green” energy or “renewable” energy; these terms represent different concepts.

Type of Energy


Green Energy 

Causes no harm to the environment and yields the highest benefit. 

Renewable Energy 

Comes from sources that replenish naturally over time. 

Clean Energy

Emits little to no greenhouse gases.

While most green energy sources are renewable, not all renewable energy sources are considered green due to their environmental impacts. For example, hydropower is a renewable energy source that relies on the natural water cycle. However, building hydroelectric dams could lead to deforestation, habitat destruction, and potential disruption of local ecosystems. A 2019 study [1] found limited to no climate benefits when hydropower facilities are designed and constructed without considering climate impacts, leading to debates about its classification as green energy.

The Most Common Examples of Clean Energy

Clean energy comes from sources that have minimal environmental impact and do not release pollutants. It encompasses:

Solar Energy

Captured through photovoltaic (PV) panels or solar thermal systems that convert sunlight into electricity or heating solutions.

Wind Energy

Hydroelectric Energy

Energy from Green Hydrogen

Energy from Biomass

Involves burning organic materials (like plant waste) or converting them into gases or biofuels.

Geothermal Energy

Tidal Energy

Nuclear Energy

The Benefits of Clean Energy

Clean energy can help you unlock a range of advantages, including:

Reducing Carbon Emissions

Clean energy sources do not produce harmful greenhouse gases or other pollutants, making them environmentally sustainable.

Gaining Energy Independence

Creating Green Jobs


The Importance of Clean Energy in Malaysia

Why is clean energy important in Malaysia? On top of environmental implications, clean energy can also create substantial economic opportunities for Malaysia alongside improving grid independence and global industrial competitiveness.

Environmental Implications

Adopting clean energy helps Malaysia mitigate carbon emissions and foster a healthier environment. As a signatory and active participant in global climate agreements, embracing clean energy is crucial for Malaysia to uphold its international pledges and demonstrate a commitment to carbon reductions.

Economic Opportunities

The global energy transition is creating new markets and high-value career opportunities. By investing in clean energy technologies, Malaysia can emerge as a leader in this growing industry. Moreover, Malaysia’s implementation of frameworks like the National Energy Transition Roadmap (NETR) and National Industrial Master Plan (NIMP) is ushering in a more low-carbon economy while attracting Foreign Direct Investments (FDIs) to Malaysia.

Grid Independence

Currently, Malaysia’s energy is subsidised heavily by the government. Adopting clean energy can significantly reduce the reliance on fossil fuels and coal production. This transition reduces consumption and dependence on the TNB grid and moves Malaysia towards economic and environmental sustainability.

Global Industrial Competitiveness

As a key manufacturing hub within the global supply chain, Malaysia’s adoption of clean energy resonates with growing demands for decarbonisation in global supply chains. By adhering to international environmental regulations such as the Carbon Border Adjustment Mechanism (CBAM), Malaysia is strategically positioning itself to enhance industrial competitiveness.


The Future of Clean Energy in Malaysia

With the establishment of the NETR [2], the Malaysian government is targeting a 40% share of renewable energy in the national installed capacity mix by 2035 and an impressive 70% by 2050. The NETR has also introduced initiatives to increase installed RE capacity, scale-up solar systems in government buildings, and develop cross-border renewable energy trade.

Solar energy, a key player in Malaysia’s renewable energy strategy, is poised for significant growth. With the nation’s abundant sunlight, solar power is not just a viable option; it’s a strategic solution. The Malaysia Solar Photovoltaic Roadmap anticipates that the country’s solar power capacity could reach up to 11,000 megawatts (MW) by 2030, contributing substantially to the 2035 and 2050 targets.

Furthermore, hydropower already plays a significant role in Malaysia’s energy mix. A Free Malaysia Today [3] article outlines how Sabah is developing its hydropower potential, capped at 1,100MW, to meet the state’s surging power demand.

As investments in renewable energy increase, local and international confidence in Malaysia’s renewable energy sector continues to grow. However, Malaysia must address critical challenges such as land allocation for clean energy projects, effective integration into existing power grids, limitations on quota allocations, and the need for substantial investments in infrastructure and technology. Addressing these issues demands innovative approaches and collaborative efforts across various sectors and stakeholders.

Is Clean Energy Really Clean?

Clean energy must have a carbon-neutral or zero carbon cost throughout its production and storage cycle to be considered truly clean. Solar power and wind energy exemplify this—they are both clean and renewable, producing minimal greenhouse gas emissions during operation with a low environmental impact over their entire life cycle.

Not all renewable energy sources are equally clean due to their effects on land use, soil, and water. Despite these concerns, clean energy generally emits very low carbon emissions compared to fossil fuels and the greenhouse gases they produce.


How Can We Get Clean Energy?

Clean energy can be sourced by harnessing Malaysia’s solar, wind, biomass, hydro, geothermal, and tidal wave energy. Among these, solar energy stands out as a rapidly advancing technology within the Malaysian renewable energy industry, offering one of the easiest and fastest ways to transition to clean energy. For homeowners and business owners looking to harness solar energy, here are some options and methods:

Lease solar panels or purchase solar energy on a pay-as-you-go basis with reduced or no upfront costs.

Government Incentives

Energy Storage Solutions

Energy Efficiency Measures

Businesses and homeowners can contribute to a more sustainable and clean energy future in Malaysia by exploring these avenues and incorporating solar power into their energy mix.


Progressture Solar: Net-Zero Partner and Clean Energy Provider

At Progressture Solar, our goal is to construct the most reliable, safest, and highest quality solar PV systems for commercial and industrial buildings. We work with the best brands across the globe to ensure the durability and reliability of every element—from solar panels and inverters to wires and bolts.

Powered by our vision of a net-zero future, we believe that adopting sustainable solutions plays a pivotal role in addressing global warming and achieving ambitious climate change mitigation goals.

Learn how we can ease your journey towards an eco-friendly green building by viewing our services or talking to an expert today.

Why You Can Trust Progressture Solar

Progressture Solar is committed to helping businesses achieve net zero by offering tailored solutions for specific needs. As a leading clean energy provider and net-zero partner, our in-house team of experts and professionals reviews our content for accuracy. We also use updated data, facts, and expert advice in all our content.


1 Illissa Ocko and Steven Hamburg. “Climate Impacts of Hydropower: Enormous Differences among Facilities and over Time.“ Environmental Science & Technology 53.23 (2019): 14070-14082. 

2 Malaysian Ministry of Economy. “National Energy Transition Roadmap.” August 2023. 

3 Free Malaysia Today. “How Sabah is tackling its energy woes.“ February 2024. 

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