DEPUTY Prime Minister Datuk Seri Fadillah Yusof stated today that the government remains committed to ensuring the country’s electricity supply is secure, sustainable, and affordable for consumers.
Currently, Malaysia's electricity generation relies heavily on two main fossil fuels—coal and natural gas—particularly for meeting the baseload electricity demand, he said.
Fadillah, who is also the Minister of Energy Transition and Water Transformation, said as of the latest data presented in the Electricity Supply and Tariff Development Committee (JPPPET) meeting on November 21, 2024, coal accounts for 36.4% of the total installed capacity in Peninsular Malaysia, equivalent to 12,183 Megawatts (MW).
“Despite global shifts toward cleaner energy, coal remains a dominant source due to its relatively low production cost, which helps keep electricity prices affordable for consumers, he said today in the Dewan Negara.
Fadillah said this in reply to a question raised by Senator Robert Lau Hui Yew who asked about the current percentage of electricity generated from coal and whether the government has plans to replace coal with zero-carbon technologies in the future.
However, the Minister also noted a significant policy shift where on February 7, 2023, the JPPPET decided that no new coal-fired power plants would be built in Malaysia.
“This decision aligns with the country's commitment under the Paris Agreement 2015 to reduce greenhouse gas emissions by 45% by 2030 and to achieve net-zero carbon emissions by 2050.
“The absence of new coal plants in the next 20 years reflects Malaysia’s long-term energy strategy to transition away from fossil fuels,” he added.
In line with this decision, the government is exploring various methods to reduce carbon emissions from electricity generation. This includes investigating potential solutions like mothballing existing coal plants, co-firing with biomass, and developing new clean and renewable energy technologies.
Additionally, nuclear power is being considered as a potential energy source to help diversify Malaysia’s electricity generation portfolio and reduce reliance on coal, he said.
The government's ongoing efforts demonstrate its commitment to achieving a sustainable energy future while balancing the need for affordable and reliable electricity.
As Malaysia works towards meeting its carbon reduction targets, the transition from coal to cleaner technologies will be a key part of the country's energy transformation strategy. – March 6, 2025
