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The main thrust of the electricity subsector will continue to emphasize the adequacy of electricity supply as well as improve its productivity and efficiency. New private investments in the generation activities, including co-generation system connected to distribution networks, will be encouraged. At the same time, the transmission and distribution systems will be further strengthened to improve coverage, reliability and quality of supply. The Malaysian Grid and Distribution Codes will be further improved, particularly in terms of frequency limit and reactive power requirement. The electricity supply industry will be restructured to create an efficient industry, in terms of both technical and economic efficiencies. An Energy Commission will be established to regulate the technical and economic efficiencies of the industry.

Renewable energy

To supplement the conventional supply of energy, new sources such as renewable energy will be encouraged. In this regard, the fuel diversification policy which comprises oil, gas, hydro, and coal, will be extended to include renewable energy as the fifth fuel, particularly biomass, biogas, municipal waste, solar and mini-hydro. Of these, biomass resources such as oil palm and wood waste as well as rice husks will be used on a wider basis mainly for electricity generation. Other potential sources of energy will include palm diesel and hydrogen fuel.

Energy efficiency

Efficient utilization of energy will also be encouraged through the enforcement of the Energy Efficiency Regulations and implementation of Demand-side Management, such as retrofitting and district cooling programmes, changing energy consumption patterns and appliance labelling. The establishment of new integrated complexes and townships that are managed in an energy-efficient manner will be encouraged. Towards this end, Malaysian standards on efficient lighting, air-conditioning and building envelope systems will be formulated, and energy efficiency provisions will be incorporated into the Uniform Building By-Laws.
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Energy Security Section, Environment and Development Division,
United Nations Economic and Social Commission for Asia and the Pacific