Markets Malaysia
Electricity tariffs for commercial & industrial segment has been increasing more than around 3% (annualized) since 2006, pushing up costs for businesses.
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Malaysia’s Energy Sector Overview
Installed Power Capacity (2021)
- Electricity demand growth forecast: 4 – 5%
- Electrification rate : 98.22% (2014)
- Interconnection with Singapore and Thailand, electricity trade is limited to 75GWh of imports and 45GWh of exports.
Average Electricity Prices (Industrial User)
- TNB E2 medium voltage tariff is 0.355 + 1.6% KWTBB + ICPT (3.7 sen)
- 0.398 MYR/kWh landed cost (2H 2022)
- Imbalance Cost Pass -Through (ICPT) mechanism allows for TNB to reflect changes in fuel and other generation-related costs in the electricity tariff
Regulation
Government Lead Initiatives:
- Renewable Energy Sources targets: Achieving 31% of Renewable Energy (RE) capacity mix by 2025
- Reduce GHG intensity of GDP by 45% by 2030 as compared to 2005
Implementation:
- Net-metering scheme of 500MW fully subscribed in 2020. Additional quota of 600MW (C&I) and 200MW (residential & government) quota was released in 2021 for application up to 2023.
- 600MW of Virtual PPA quota was released in Nov 2022 to further increase the supply of green electricity supply.