Malaysia urged to integrate power grids to accelerate solar growth

Limiting solar penetration to the grid at 24% of peak demand could impede its expansion.

Malaysia boasts abundant solar energy promise, with 269 gigawatts (GW) of potential capacity, but the country should expand its grid to unlock its value, according to a policy analyst.

“Insufficient grid infrastructure in Malaysia may hinder the growth of solar because the grid is not flexible enough to accommodate the increasing solar power supply in the coming years,” Shabrina Nadhila, think tank Ember’s electricity policy analyst for Southeast Asia, told Asian Power.

The government has limited solar penetration to the grid at 24% of peak demand because large-scale energy storage is limited. Nadhila warned this could impede solar energy’s expansion.

Malaysia's yearly solar capacity has grown by 17% since 2019, but it was flat at 1.94 GW in 2023, Nadhila said, citing Ember data. It targets to increase the share of renewable energy in its power mix to 70% by 2050, from about 20% now.

Solar is expected to account for a majority share at 58% or 59 GW, with gas serving as a transition fuel, according to the state’s National Energy Transition Roadmap published last year.

The government seeks to use about 5% of the country’s solar potential or 14 GW by 2035, leaving a significant amount of solar resources untapped.

In a report she wrote for Ember this month, Nadhila said Malaysia should integrate the grids of the three regions to fast-track solar growth and enhance grid stability. Integration would let Sabah boost its power supply security, Sarawak to access more solar during the day and Peninsular Malaysia to use hydropower during evening peaks.