09/05/2025

PETALING JAYA: The low proportion of renewables in Malaysia's enery mix, which is behind even that of Haiti, should prompt the country to embrace solar energy, according to a British climate expert.

Bob Ward, policy and communications director at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics, said he found it "slightly striking" that solar energy does not have greater prominence.

"Malaysia is behind Haiti in terms of the share of its electricity generated from renewables, particularly from solar, despite its huge potential," he told FMT.

"Solar is the world's cheapest form of energy. Its low cost leads to reduced spending for businesses and households, which is good for the economy," he said.

According to the latest data from the International Renewable Energy Agency, renewables account for 20% of Haiti's energy mix, compared with roughly 18% for Malaysia.

Ward attributed Malaysia's "underperformance" partly to its growing reliance on coal.

In 2023, Malaysia imported US$5.12 billion worth of coal briquettes, making it the seventh-largest coal importer globally, according to The Observatory of Economic Complexity.

Key suppliers included Indonesia (US$2.98 billion or 58% of imports), Australia (US$1.36 billion or 27%), and Russia (US$398 million or 8%).

The International Energy Agency reported that coal accounted for 39% of Malaysia's carbon dioxide emissions from fuel combustion in 2022 – a jump of more than nine times from 2000. Over the same period, coal's share of electricity generation rose by more than 10 times to 46.8%.

Ward said solar energy could help insulate Malaysia from the risks tied to global oil prices and geopolitical shifts that have mostly been driven by Donald Trump’s return to the White House.

"To make the economy less vulnerable to market volatilities, Malaysia should diversify from oil and gas.

"Malaysia is vulnerable to changes in global oil prices. Trump's ambition to flood the market with American oil adds to that uncertainty," he said.

In January, Trump signed executive orders declaring a national energy emergency and rolled back Biden-era restrictions on oil and gas production in the US, including in Alaska.

Ward said that amid such volatility, solar offers Malaysia a more stable path forward.

"It is a reliable source of electricity – one that does not depend on imports. It will be the Malaysian sun that powers your economy," he said.

"The economics are much more favourable than other energy sources. Given Malaysia’s location, there's great potential for generating large amounts of electricity."

Looking ahead, Ward said a shift toward clean energy would also unlock broader economic benefits.

"You can start building industries powered by clean, green energy, thus moving away from fossil fuels.

"The future is a bright and promising one, driven by creativity, innovation, and greater prosperity. It will spur development and economic growth. So why wouldn’t we want that?" he added.

Source: FMT