How electricity is generated in Malaysia

ELECTRICITY output in Malaysia is generated primarily from burning limited fossil fuel resources such as oil, coal or natural gas that have huge consequences for the environment.

Natural gas production has steadily increased year on year, becoming one of our primary energy suppliers in 2012 at 38,648 kilotonne of oil equivalent (ktoe).

As Malaysia’s economy develops, demand for electricity over the past decade has increased, almost doubling alongside population growth, reaching 134billion kWh in 2012 according to data from the Malaysia Energy Information Hub (MEIH).

The primary source of demand for Malaysia comes from the industrial sector, which accounts for about 45% in 2012, while residential and commercial use account for 33% and 21% respectively as sourced from the United States Energy Information Administration.

Nevertheless, biofuel sources such as biodiesel have been almost negligible though Malaysia plays a significant role in global palm oil production and supply, a key component used for biodiesel production.

However initiatives by the Sustainable Energy Development Authority of Malaysia (SEDA), a statutory body formed under the Sustainable Energy Development Authority Act 2011, has led to renewable sources of energy increasing due to the feed-in tariff (FiT) mechanism.

The system provides for FiT approval holders, which include individuals or companies, will be eligible to invest in renewable energy sources such as solar power that can then be sold to the electricity grid.

Aside from alternative energy outputs such as hydroelectricity and solar power, biomass and biogas as sources of energy have also been increasing through SEDA’s initiative.