Advancing Just Energy Transition December 2023 | Page 19

ADVANCING JUST ENERGY TRANSITION

Malaysia ’ s Sustainable Energy Development Prospectus

MALAYSIA IS COMMITTED TO sustainable , low-carbon development , with a clear vision for reshaping its economic landscape . In line with the Paris Agreement , the nation ’ s latest Nationally Determined Contribution ( NDC ) submission seeks to achieve an impressive 45 per cent unconditional reduction in emission intensity by 2030 compared to 2005 levels .

The country has set its sights on achieving net zero emissions by as early as 2050 , as emphasised in its most recent National Energy Policy . It is actively preparing a Long-Term Low Emission Development Strategy ( LT-LEDS ) to solidify its path toward sustainability .

In pursuit of this ambitious goal to achieve net zero emissions by 2050 , Malaysia is committed to prioritising low-carbon and climate-resilient measures within its development strategies to create a more efficient and sustainable economic landscape .

As part of this commitment , the country has established an ambitious RE target . MyRER is designed to craft a national strategic plan guiding Malaysia ’ s renewable energy policy development , aiming for a 31 per cent RE share in the national capacity mix by 2025 and 40 per cent by 2035 . It supports the ongoing decarbonisation of Malaysia ’ s electricity sector , working towards the 2035 milestone . The initiative anticipates a significant reduction in GHG emissions within the power sector , aligning with Malaysia ’ s NDC 2030 target of a 45 per cent decrease in economy-wide carbon intensity compared to the 2005 level .

This scenario projected by MyRER is poised to create significant job and investment opportunities in the RE sector , with a cumulative investment of RM19.93 billion and 28,416 jobs projected by 2025 , excluding employment related to the RE equipment manufacturing . Post-2025 , the ongoing deployment of RE is expected to sustain socioeconomic impacts through 2035 , with an estimated cumulative investment of RM33.07 billion and 46,636 jobs in the RE sector .

The Increase of RE Target

In May 2023 , the government reaffirmed its commitment to unlock economic opportunities through a low-carbon transition , setting out the ambitious target to achieve 70 per cent RE installed capacity in the power mix by 2050 .

The National Energy Transition Roadmap ( NETR ) aims to reinforce this ambition and inform an accelerated RE rollout by affirming two essential targets :

• Target 1 : 70 per cent RE installed capacity share by 2050

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17,996 MW RE Share 2034 40 %

RE Capacity Mix to achieve the target in 2035