The Deputy Prime Minister II said the convergence of renewable energy expansion and large-scale electrification increasingly defines the global energy transition.
“Electricity is becoming the dominant energy carrier across key sectors, fundamentally reshaping energy demand and reducing reliance on fossil fuels, particularly oil,” he said when contacted.
According to him, recent developments, including the Iran-US conflict, have further reinforced this shift.
“Disruptions to global energy supply chains have led to heightened price volatility, underscoring the vulnerability of systems that remain heavily dependent on fossil fuels.
“This has strengthened the global push towards more diversified, resilient and domestically anchored energy systems,” said Fadillah, who is also the Energy Transition and Water Transformation Minister.
He said Malaysia has made steady and measurable progress in expanding renewable energy.
In 2020, renewable energy accounted for about 23% of total installed capacity, of which about 76% was hydropower, 17% solar and the remaining 7% other renewable sources.
As of the end of 2025, renewable energy has increased to about 31% while fossil fuel-based generation stands at about 69%.
The composition of renewable energy has also shifted significantly with solar now accounting for about 49% of total renewable capacity, followed by hydro at around 42%, and the remaining 9% coming from other sources.
“This reflects a clear structural transition in Malaysia’s energy mix with solar emerging as the primary driver of renewable energy growth.
“This progress is supported by the introduction of key programmes such as the Large-Scale Solar programme, as well as the Corporate Renewable Energy Supply Scheme, designed without quota constraints.
“These schemes are open to broad participation, enabling both corporate players and other segments of the public to take part in the renewable energy sector,” he said.
Looking ahead, Fadillah said Malaysia remains committed to achieving 35% renewable energy installed capacity by 2030.
“Given the evolving global energy landscape and strong domestic momentum, we will continue to assess opportunities to accelerate this trajectory, particularly in scaling up renewable deployment.
“To support this, our focus will be on strengthening the overall renewable energy ecosystem and supply chain,” he said.
The Deputy Prime Minister II said this includes supporting local solar manufacturers and value chain players to enhance competitiveness and capture greater economic value, accelerating the deployment of energy storage systems to address intermittency and ensure grid stability, and promoting a more diversified renewable mix beyond solar, including hydro, bio-energy and emerging sources.
He said these measures will help to enhance system reliability and reduce over-dependence on a single technology.
“Over time, this will progressively reduce our dependence on oil and strengthen long-term energy security while supporting new areas of economic growth such as electric mobility and renewable-powered data centres,” he said.
“Our priority is clear. We will double down on accelerating the energy transition in a disciplined and balanced manner, ensuring that reliability is preserved, affordability remains protected for consumers and sustainability goals are achieved.”
Fadillah also said this approach will position Malaysia as a resilient and competitive player in the evolving global energy landscape.
