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Reduced electricity demand through the implementation of an energy efficiency policy is a central pillar of the Malaysian government's energy strategy. Energy efficiency first emerged as part of Malaysia's energy policy agenda in 1979 but only came into force during the 2000s. Initially, it was seen from global fears about the shortage of fossil fuels, then as a way of combating climate change. This paper offers a comprehensive review of Malaysia's energy policies with a focus on adopting policies to improve energy efficiency. Starting with Malaysia's preliminary policy in response to the OPEC-driven global oil crisis in 1973, the paper discusses how policymakers are considering energy efficiency from Malaysia's sustainable development perspective and what relevant government efforts have been made to improve it. The review evaluates the progress that has been made over the past 25 years to address energy efficiency in the economy and highlights the achievements and remaining difficulties. Findings show that the level of energy efficiency while having shown improvement during 1990–2015 was lower than expected. In terms of electricity intensity of GDP, Malaysia has a relatively large position among the ASEAN countries and the world's largest electricity consumers. Researchers, scientists, and practitioners will benefit from the extensive review material of this study, which will help them better understand energy efficiency and the sustainability strategy implemented in Malaysia to date. [ABSTRACT FROM AUTHOR]

As a developing country, Malaysia's prosperity and welfare depends heavily on having access to reliable and secure supplies of energy. As a result, the country's future energy requirements have become a policy priority in recent years. Energy is essential for human life, and a secure and accessible supply of energy becomes important for the modern societies. Fossil fuels such as coal, oil, and natural gas are currently the world's primary energy sources and continue to provide energy source to the world. These energy sources have depleted in reserves in recent years and they can also cause irreparably damage to the environment such as global warming and climate change. These environmental concerns can be addressed, to some extent, through more sustainable solutions such as the use of renewable energy resources. In Malaysia, the economic and environmental impacts of fossil fuels use have become hard to ignore. The government has introduced and implemented policy measures to address concerns surrounding the use of fossil fuels and to promote energy efficiency and renewable energy use. In this paper, we review the historical evolution of Malaysian energy policies and initiatives designed to secure diverse energy sources and avoid over-reliance on fossil fuels. In recent years, Malaysia has been catching up with global call to shift to renewable energy use and is now putting a focus on renewable energy in its future energy mix. The paper also discusses challenges and concerns over the future of sustainable energy of the country. [ABSTRACT FROM AUTHOR]

The increase in oil prices has put pressure on the global economy. Even economies that have a high degree of self-sufficiency concerning oil products are experiencing rising production costs and price increases for households energy use. Therefore, changes in energy policies are under consideration for countries highly dependent on imported energy as well as countries with a high degree of self-sufficiency. Examination of dependence on cheap energy sources for economic growth in different economic sectors is becoming more important as countries are trying to promote activities that are less energy intense. Among the policy changes under consideration, the adjustment of domestic energy subsidies is of particular interest. The effect of high energy prices on a fast growing economy, such as in Malaysia, is considerable, as the country will shift from being a net exporter of energy to a net importer in less than 10 years. Malaysia until recently has experienced increasing overall energy intensity and the growth up to 2,000 was quite high, especially for electricity intensity. A continued rise in energy intensity will be quite problematic in this new high oil price regime. This paper investigates the impact of rising energy prices on production costs for the different sectors of the Malaysian economy. Input–output (I–O) calculations demonstrate that the impact on the exporting component of the manufacturing sectors is less than for the average production. Therefore the production cost increase caused by, for example, an adjustment in electricity prices of 25% will result in less than 1/2% increase. As the competing countries in world markets are experiencing the same rise in energy costs, including electricity based on fossil fuels, there is no vital argument for not allowing domestic energy prices to adjust to the international price changes. [ABSTRACT FROM AUTHOR]

Malaysia, as one of the top energy subsidizing countries, has announced to remove energy subsidies necessarily, not only to reduce energy consumption and the government budget deficit but also to improve overall efficiency and air quality. Therefore, this study evaluates the impacts of rationalizing energy subsidy and its energy efficiency improvement during 2010–2030 using a dynamic recursive computable general equilibrium model. Results revealed that reducing energy subsidies decreases energy consumption and emissions of all air pollutants. While the economic performance of the country improves in the long run due to stimulation in capital demand and investment, it reduces in the short run. Energy efficiency also improves by 1.1% and 2.3%, in the short run, in response to a reduction of 10% and 100% in energy subsidies, respectively. Energy efficiency improvements decrease the negative effects of pure subsidy policies on real GDP, trade, investment, and household consumption. The efficiency improvement policies also are effective in reducing more level of the rebound effect and lead to more energy saving in the economy, particularly in the petroleum products sector. The impacts on the rebound effect also differ across economic sectors. The results of this study provide new insights for energy subsidy policy and energy efficiency and suggest that additional tools and policies are required for improving the energy efficiency caused by phasing out energy subsidies. Malaysia, as one of the top energy subsidized countries, attempts to reduce the level of energy subsidies over time and, consequently, decline the use of fossil fuels in the economy. Therefore, this study analyzes the impacts of different subsidy reform policy on energy efficiency and, consequently, on economic and environmental performance and rebound effect of Malaysia by a recursive dynamic computable general equilibrium model. [ABSTRACT FROM AUTHOR]

Alternative energy policies targeting the adoption of hydrogen fuel cell vehicles (HFCVs) could have significant positive impacts on Malaysia's ability to meet both its carbon reduction goal and its energy security needs. The transport sector generally contributes heavily to carbon emissions, and is also difficult to decarbonize because of the costs associated with many greener options. This study explores the possibility of decarbonizing the Malaysian transport sector by promoting the use of hydrogen vehicles, and analyzes the adoption challenges and economic obstacles (especially public acceptance) associated with introducing HFCVs. This study contends that the adoption challenges of this new technology can be overcome through the use of development strategies outlined. This study also addresses the regulatory framework that Malaysia (and other countries) might use to overcome common policy adoption challenges of HFCVs. [ABSTRACT FROM AUTHOR]

The increase in energy demand has caused considerable attention to be directed toward sustainable energy resources. The importance of electricity generation through solar energy has been intensively highlighted globally, but Malaysia has yet to exert efforts to develop this energy resource. This study explores the social acceptance and level of human interest in solar energy. In addition, this work identifies the difficulties in the consumption of solar energy and the expectations for solar energy development in Malaysia. Survey results show that 80 % of the respondents are highly interested in solar energy. However, the majority of the respondents have reported that some hindrances, such as expensive solar panels and lack of correct information about solar energy utilization, make fuel-generated electricity a preferable choice. Meanwhile, almost 80 % of the respondents believe that government incentives could best enhance solar energy usage nationwide. To implement new solar energy policies successfully in Malaysia, the government should support the establishment of solar power plants, as well as provide complete information and funding for independent research. Furthermore, more than 70 % of respondents perceive the government to be the main organization that should lead the development of this energy sector. Therefore, this research provides some useful references for policy makers to continue promoting the use of solar energy in Malaysia. [ABSTRACT FROM AUTHOR]

Background: The global commitment to climate change mitigation enforces the worldwide development of renewable energy sources. Therefore, various studies have investigated the growth of renewable energy in Malaysia, most commonly based on biogas and hydropower. In this article, the dynamics of Malaysia's renewable energy development is critically examined by using the latest official national reports and other reliable resources. Results: The study reveals the influencing factors that shape renewable energy growth in a developing country endowed with substantial biomass resources, such as Malaysia. Likewise, it evaluates the evolution of renewable energy in the electricity sector. In 2017, renewable energy represented about 3.5% of the Malaysian electricity generation mix with 1122 MW of installed capacity. A closer look into the renewable energy resources, i.e. biomass, biogas, solar and small hydro power, revealed that over 47% of the grid-connected power generation came from solar photovoltaic (PV) energy. While solar PV capacity continues to accelerate, the development of other renewable resources, especially biomass, is seeing growth at a significantly slower pace. This article investigates the underlying causes of the skewed development rate as well as the potential strategies that may be adopted to promote a diversification of renewable energy resources. In light of this, introduction of a new national bioenergy policy is proposed, through which four essential programmes could be implemented: (i) enhanced bioenergy conversion efficiency and waste management, (ii) biomass co-firing in coal power plants, (iii) conversion of biogas to biomethane and bio-compressed natural gas (bio-CNG), (iv) large-scale biomass power plants. A total of 4487 MW of additional power could be connected to the grid upon successful implementation of a large-scale biomass power plant programme. Conclusions: The establishment of a comprehensive and inclusive national bioenergy policy will lead towards a sustainable future of renewable energy development in Malaysia. [ABSTRACT FROM AUTHOR]