Malaysia on Track to Hit 30 GW of Renewable Energy Capacity by 2035

Malaysia is projected to reach nearly 30 GW of renewable energy capacity by 2035, driven by strong policy support and a compound annual growth rate (CAGR) of 16.8% between 2024 and 2030, according to a new report from GlobalData.

The report, titled “Malaysia Power Market Outlook to 2035, Update 2025 – Market Trends, Regulations, and Competitive Landscape,” highlights the country's progress in renewable generation. Output rose from 5 TWh in 2020 to 9.8 TWh in 2024, and is expected to climb to 51.1 TWh by 2035, reflecting a CAGR of 16.2% from 2024 to 2035.

Malaysia aims to generate 40% of its total installed capacity from renewable sources by 2035, supporting its broader goal of reaching net-zero emissions by 2050.

Attaurrahman Ojindaram Saibasan, senior power analyst at GlobalData, noted that the launch of the National Energy Transition Roadmap (NETR) and the Malaysia Renewable Energy Roadmap (MyRER) has established a well-defined regulatory framework, enhancing investor confidence and demonstrating firm government commitment to the clean energy transition.

“These roadmaps have opened up significant investment opportunities and reflect Malaysia’s determination to move toward a more sustainable and resilient energy future,” Saibasan said.

While bioenergy is currently the most widely used alternative energy source, solar photovoltaic (PV) leads as the largest renewable power technology in the country. Growth in solar is being accelerated by government programs such as the Large Scale Solar (LSS) scheme, Net Energy Metering (NEM), and incentives for rooftop solar installations in both residential and industrial sectors.

Hydropower also plays a key role, particularly in Sabah and Sarawak, while bioenergy from palm oil waste and municipal solid waste is gaining traction as part of Malaysia’s diversified renewable mix.