ADVANCING JUST ENERGY TRANSITION
Malaysia ’ s Sustainable Energy Development Prospectus
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Industry
Transport
EJ
Buildings
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Non-energy Use
Agriculture
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Source : ST , 2022a
Total final consumption in Malaysia , by sector , 2010 to 2019
Long-term economic and population projections indicate that Malaysia ’ s energy demand will continue to grow . In the past two decades , energy demand has grown by around 3 per cent per year , and growth is estimated to average around 1.4 per cent per year until mid-century . Malaysia is traditionally a fossil fuel producer with large reserves of oil and natural gas . Although it remains a net exporter of gas and oil , its coal imports have been increasing to meet the growing energy demand .
To meet rising energy demand , Malaysia faces a pivotal decision : continue relying on diminishing oil and gas resources , potentially becoming a net importer , or embrace renewable energy alternatives . Transitioning to renewable energy , as suggested by the report ’ s 1.5 ° C Scenario , could save the country between USD 9 billion and USD 13 billion annually in energy , climate , and health costs .
Malaysia ’ s total final energy consumption of 2.8 exajoules ( EJ ) in 2019 constitutes a significant portion of 65 per cent , of the total primary energy supply . Transport sector emerged as the largest consumer , devouring 38 per cent of the total final energy .
While heating demand and per capita electricity consumption in households were relatively low , buildings contributed around 12 per cent to the overall energy demand . Notably , a staggering 70 per cent of households owned air conditioners , emphasizing a substantial cooling demand .
Examining energy sources , oil products took center stage in 2019 , constituting 66 per cent of Malaysia ’ s total final energy consumption . Transport emerged as the primary consumer , absorbing three-quarters of the oil , with the rest channelled into various industrial applications . Natural gas followed closely , claiming a 29 per cent share , whereas coal played a minor role at 3 per cent , primarily utilized in the power sector . Industries predominantly relied on natural gas and oil for process heat generation .
Despite Malaysia ’ s potential for renewables , direct usage accounted for a mere 1 per cent , primarily represented by biodiesel with a 1.5 per cent share in the transport sector . Electricity , encompassing 20 per cent of total final consumption , played a pivotal role . Over 80 per cent of residential and commercial buildings relied on electricity , covering half of the nation ’ s total electricity demand , while the remaining half fueled the industrial sector .
Malaysia ’ s final energy consumption per capita in 2020 has expectedly reduced to 1.755 toe per capita , a reduction of 14.0 per cent from the previous year . The final energy intensity too has dropped from 46.68 toe / RM Million to 42.5 toe / RM Million . This however indicate a positive improvement in the energy efficiency . Looking ahead , Malaysia ’ s energy consumption is anticipated to nearly double by 2050 , projecting a 2.0 per cent annual growth rate , driven by urbanization and economic expansion .
Power generation and installed capacity
Total installed capacity in Malaysia for 2020 was 35,037 MW and it increased to 40,211MW in 2022 . Natural gas and coal are the dominant fuel , making up
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