Renewable Energy Projects in Malaysia You Should Watch in 2025

Introduction

Malaysia is undergoing a major shift in its energy landscape, aiming to reduce dependence on fossil fuels and transition toward a cleaner, more sustainable future. The government has set ambitious targets to increase renewable energy’s share in the national grid, with 2025 marking a significant milestone. From large-scale solar farms to cutting-edge battery energy storage systems and regional power grid collaborations, Malaysia is positioning itself as a leader in Southeast Asia’s clean energy transformation.

This article highlights the key renewable energy projects in Malaysia you should watch in 2025, their potential impact, and how they fit into the country’s long-term green energy strategy.

Solar Power Driving Malaysia’s Clean Energy Growth

Solar energy remains the backbone of Malaysia’s renewable energy push. With abundant sunshine year-round, the country has invested heavily in both rooftop and large-scale solar projects.

Solar ATAP (Accelerated Rooftop Solar Adoption Programme)

Launched in December 2025, Solar ATAP is designed to make rooftop solar more accessible for households and businesses. By offering incentives, tax rebates, and simplified application processes, this programme aims to accelerate nationwide adoption of solar energy and reduce grid dependence. It is expected to increase the contribution of solar power in Malaysia’s renewable energy mix significantly over the coming years.

Large Scale Solar (LSS) Projects

Malaysia’s Large Scale Solar (LSS) programme has been a cornerstone in boosting solar energy capacity. Tenaga Nasional Berhad (TNB) Renewables manages several flagship projects, including:

• Sepang Solar Farm – one of Malaysia’s earliest large-scale solar initiatives.
  
• Bukit Selambau Project in Kedah – contributing to the northern region’s energy needs.
  
• Kerian Solar Project in Perak – a high-capacity photovoltaic project showcasing Malaysia’s commitment to green infrastructure.
  

Together, these projects help power the national grid and support the government’s renewable targets.

Net Energy Metering (NEM) and SELCO Schemes

Another important initiative is the Net Energy Metering (NEM) scheme, which allows households and businesses to generate their own solar power and sell excess energy back to the grid. Similarly, Self-Consumption (SELCO) schemes encourage businesses to maximize their own solar usage. Both play a crucial role in democratizing clean energy access and promoting energy independence.

Expanding Battery Energy Storage Systems (BESS)

One of the main challenges with renewable energy is its intermittent nature. Solar power generation drops during cloudy days or at night, while hydropower may vary with rainfall. To address this, Malaysia is ramping up its investment in Battery Energy Storage Systems (BESS).

MYBESS Prototype

In 2023, Malaysia unveiled MYBESS, the country’s first homegrown BESS prototype. Locally designed and manufactured, this system showcases Malaysia’s ability to innovate in energy technology while reducing reliance on imported solutions.

Sodium-Sulfur (NaS) Battery Deployment in Kedah

A milestone project was launched in 2024 with the deployment of a Sodium-Sulfur (NaS) battery system in Kedah. This advanced storage solution helps stabilize the grid and represents a step forward in adopting high-performance energy storage technologies.

Sarawak Energy BESS Project

East Malaysia is also making strides. In Kuching, Sarawak Energy commissioned a 60MW/82MWh BESS facility in Sejingkat. This large-scale energy storage project ensures greater grid stability and supports the integration of renewables into the region’s power supply.

By 2030, Malaysia aims to significantly expand its BESS capacity, making it a critical enabler of the clean energy transition.

Malaysia’s Role in the ASEAN Power Grid (APG)

Malaysia is not only looking inward but also outward by playing a central role in the ASEAN Power Grid (APG). This initiative seeks to establish regional interconnectivity among Southeast Asian nations, creating a robust and integrated clean energy network.

Tenaga Nasional Berhad (TNB) is actively engaged in this effort, working on cross-border interconnection projects that would allow surplus renewable energy to be shared across the region. For Malaysia, the APG provides opportunities to export clean energy, attract foreign investment, and position itself as a regional green energy hub.

Hydropower Projects in Sabah and Sarawak

Malaysia’s hydropower potential lies largely in the hilly terrains and river systems of Sabah and Sarawak. These regions are ideal for generating reliable and large-scale hydroelectricity.

Sarawak Energy, in particular, has been spearheading several hydropower initiatives aimed at balancing the energy mix. Hydropower is especially valuable because it provides a stable energy source that can complement the intermittent nature of solar and wind.

Looking ahead, further hydropower development in East Malaysia could help supply both local demand and contribute to the ASEAN Power Grid, strengthening Malaysia’s role as a regional energy leader.

Biomass and Waste-to-Energy Innovations

Malaysia’s large agricultural sector provides another avenue for renewable energy: biomass and waste-to-energy projects. By converting agricultural waste such as palm oil residues, rice husks, and timber by-products into energy, Malaysia can generate sustainable electricity while addressing waste management challenges.

In Sabah and parts of Peninsular Malaysia, pilot projects have shown strong potential for biomass energy generation. This not only diversifies Malaysia’s renewable portfolio but also promotes a circular economy, where waste is reused to create value. Additionally, biomass initiatives can support rural electrification, bringing energy access to remote communities.

FAQ – Renewable Energy in Malaysia 2025

Q1: What is Solar ATAP and how does it benefit Malaysians?
Solar ATAP is a government programme launched in December 2025 to accelerate rooftop solar adoption. It provides incentives, rebates, and simplified processes for households and businesses to install solar panels, reducing electricity bills and promoting clean energy.

Q2: How does Malaysia’s BESS expansion improve energy security?
By storing excess renewable energy, Battery Energy Storage Systems (BESS) ensure a stable power supply even when solar or hydropower generation fluctuates. This makes the grid more reliable and reduces dependence on fossil fuel backup systems.

Q3: Which regions have the most hydropower potential?
Sabah and Sarawak, with their hilly terrain and river systems, hold the greatest hydropower potential in Malaysia. Sarawak Energy has been developing large-scale hydro projects to meet both domestic and regional energy needs.

Q4: What role does Malaysia play in the ASEAN Power Grid?
Malaysia, through TNB, is a key player in the ASEAN Power Grid project. By enhancing cross-border connectivity, Malaysia can share renewable energy with neighboring countries and position itself as a clean energy hub in Southeast Asia.

Q5: Can households benefit from renewable energy incentives in 2025?
Yes. Through Net Energy Metering (NEM), SELCO, and Solar ATAP, households can generate their own solar power, reduce electricity costs, and even sell excess energy back to the grid.

Why These Projects Matter for Malaysia’s Energy Future

Together, these renewable energy projects bring Malaysia closer to achieving its target of 70% renewable energy capacity by 2050. They also open doors to foreign investment, create green jobs, and promote technological innovation. By embracing solar, hydropower, biomass, and energy storage solutions, Malaysia is not only securing its own energy future but also leading the way in Southeast Asia’s green transition.

Conclusion

Malaysia’s renewable energy landscape is evolving rapidly, with 2025 marking a transformative year. From the Solar ATAP rooftop initiative and LSS farms to pioneering BESS projects, hydropower expansion, and biomass innovation, the nation is laying the foundation for a cleaner and more resilient energy system.

As Malaysia deepens its role in the ASEAN Power Grid and accelerates its domestic renewable efforts, it stands on the brink of becoming a regional leader in clean energy. For households, businesses, and investors, these projects represent both opportunities and a collective responsibility to support Malaysia’s journey toward a sustainable future.

Get Spot on Google First Page with SEO for Business | BigDomain’s SEO Package Malaysia

Affordable SEO for Business Package Malaysia for Google 1st Page

Looking to grow your business online and secure a spot on Google first page? BigDomain offers tailored SEO packages Malaysia to help businesses of all sizes achieve digital marketing goals. Whether you’re aiming for increased visibility, higher traffic, or better rankings, BigDomain’s SEO for business solutions ensure measurable results with long-term benefits.

Why Choose BigDomain’s SEO for Business?

BigDomain specializes in providing SEO marketing strategies designed to meet your unique business needs. With over 15 years of experience, we use proven techniques to ensure your website ranks higher on Google and reaches your target audience effectively.

Here’s what BigDomain SEO services Malaysia include:

• Google SEO Optimization: Targeting keywords that matter to your business to improve rankings on Google’s search results.
• On-Page SEO: Refining your website’s content, meta descriptions, and titles to align with search engine best practices.
• Off-Page SEO: Building quality backlinks that boost your website’s credibility and authority.
• Technical SEO: Optimizing your website’s speed, mobile performance, and structure for better search engine indexing.
• Local SEO Malaysia for Businesses: Helping you dominate local search results to attract customers in specific regions.

All-in-One SEO Packages Malaysia – Achieve Google First Page at Only RM1480!

For businesses seeking comprehensive solutions, BigDomain’s All-in-One SEO for Business Package Malaysia is the ultimate choice. This SEO package covers all aspects of SEO to ensure your website ranks on Google first page, driving organic traffic and increasing leads.

Limited-Time Offer:
The All-in-One SEO Package is now available at a special price of RM1,480 (original price: RM4,999).

Benefits of BigDomain’s SEO Marketing Services:

• Boost your website’s visibility on search engines.
• Drive targeted, organic traffic to your business.
• Establish your brand’s credibility and authority in your industry.
• Convert visitors into loyal customers through better search rankings.

Get Started with BigDomain Today!

Don’t let your competitors dominate the search results. Take the first step towards securing your spot on Google first page with BigDomain’s SEO marketing expertise.

Visit the BigDomain website at bigdomain.my to explore available SEO packages in Malaysia and find the right fit for your business.

For personalized guidance, contact BigDomain team via WhatsApp:

• Sue: https://wapp.my/60187880118/ 
• Hooi Min: https://wapp.my/60184715660/ 

Invest in SEO for business package today and watch your rankings soar, driving real growth and results for your company. Make your business visible and impactful with BigDomain!