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Workshop on Malaysia's Energy Future Concludes with Key Insights on Natural Gas and Renewable Energy

Sunway City Kuala Lumpur, Malaysia – February 27, 2025 – A pivotal workshop, "Assessing Malaysia's Energy Future," concluded today, delivering crucial insights into the nation's energy transition. Hosted by the European Commission, through the RE-CONNECT project in collaboration with UN Sustainable Development Solutions Network (SDSN) Asia Headquarters at Sunway University, the event focused on the role of natural gas as a transition fuel and the integration of renewable energy sources.

Timo Goosmann, Minister Counsellor – Head of Political Affairs, Press and Information, from the Delegation of the European Union to Malaysia, delivered the opening remarks. The workshop featured expert presentations and in-depth discussions on energy systems modelling, international case studies, and Malaysia's specific energy landscape.

  • Dr. Panagiotis Fragkos and Eleftheria Zisarou from E3M provided valuable perspectives on energy systems modelling and the financial implications of inadequate long-term climate planning. Dr. Fragkos emphasised the importance of clear modelling boundaries and the crucial role of the modelling assumptions, while Zisarou highlighted the potential for significant financial losses when countries fail to adequately plan for long-term climate targets especially in the form of gas-fired stranded assets.
  • Paul Dowling from the Joint Research Centre, European Commission presented the Global Energy and Climate Outlook (GECO) 2024, offering insights on updating Nationally Determined Contributions (NDCs) and closing the ambition gap towards meeting the Paris Agreement’s long-term temperature goals. Participants were informed that modelling results for Malaysia are accessible on the GECO website.
  • Professor Leong Yuen Yoong from SDSN, Sunway University provided a comprehensive overview of Malaysia's power sector and existing models from the ASEAN Green Future project, setting the stage for focused discussions on the nation's energy future.

A significant portion of the workshop was dedicated to the validation of key techno-economic and policy assumptions, which will be used to develop a tailored energy system model for Malaysia as part of the technical support provided by the RE-CONNECT project.

"This workshop has provided a valuable platform for stakeholders to collaborate and contribute to the development of a robust energy model for Malaysia," said Professor Leong.

Rosman Hamzah from Rosergy Consulting, an industry veteran with experience in both fossil fuel and renewable energy projects, expressed confidence in the continued viability of natural gas to remain the largest source of energy in Malaysia. He cited the nation's current energy transition policy, growing demand and the robust supply of natural gas, driven by new discoveries and liquefied natural gas (LNG) import potential, as key factors mitigating the risk of stranded assets. Furthermore, he noted that the majority of gas consumers in Peninsular Malaysia are paying gas at market price, indicating a healthy market for natural gas.

Electricity demand is rising due to data centres, transport electrification, and industrial growth, reinforcing the role of gas and nuclear alongside solar and battery storage.

Amalen Sathananthar of the Artivist Network presented an alternative perspective, suggesting that natural gas may not be necessary as a transition fuel for Malaysia. He highlighted the example of small solar grids paired with battery storage successfully supporting the main grid in Bangladesh as a potential model for the country. Building on the discussion of renewable energy solutions, Dr. Goh Chun Meng from SDSN, Sunway University, highlighted the potential of agrivoltaics, while Sathananthar further pointed to innovative business models that leverage residential areas for solar panel deployment.

During the first stakeholder discussion, moderated by Yang Berhormat Lee Chean Chung, Member of Parliament for Petaling Jaya in Malaysia, participants engaged in a revealing poll on Malaysia's energy transition. When asked about their perception of "natural gas power plants," the most frequent response was "reliable," followed by "expensive," "polluting," and "unsustainable." Regarding the dominant global energy source by 2050, solar and battery storage, along with nuclear, received most of the votes, while coal was unanimously deemed obsolete.

A rich exchange of ideas characterised the second stakeholder discussion, led by Dr. Fragkos. Participants offered diverse perspectives on key modelling parameters, including Malaysia’s population in 2050, average annual gross domestic product (GDP) growth rate from 2025-2050, energy intensity improvement by 2050, solar PV cost estimates and gas price assumptions. This collaborative approach ensured a comprehensive understanding of the key socioeconomic and techno-economic assumptions shaping Malaysia's energy transition.

The workshop is part of the EU-funded RE-CONNECT project, which is dedicated to assisting countries in meeting their climate change obligations by bolstering the capacity of developing countries to undertake robust greenhouse gas emissions modelling and monitoring activities.

The workshop was held online and attended by participants from the government, industry, professional service, civil society and academia in Malaysia, Thailand, Myanmar, Pakistan, China and Europe.

The workshop marks the beginning of an ongoing dialogue and technical support provided by the RE-CONNECT project. In six months, stakeholders will receive updated scenarios for Malaysia from the ASEAN Green Future project's energy system models, incorporating revised assumptions validated by Malaysian stakeholders. We encourage continued engagement in this critical discussion and invite stakeholders to explore the RE-CONNECT project and collaborate in accelerating the energy transition throughout Southeast Asia.

About RE-CONNECT

RE-CONNECT, funded by the European Commission, seeks to support climate-relevant modelling activities around the world. The project supports a range of countries to build capacity in the modelling, projections and tracking of GHG emissions, helping them to comply with their reporting requirements under the Paris Agreement. The programme aims to:

  • Improve the monitoring, reporting, verification and use of GHG emissions data and inventories by strengthening the exchange and information sharing between professionals and experts working in the field;
  • Increase the capacity within parties to the Paris Agreement for the collection and reporting of robust data on greenhouse gas emissions and associated climate policies and measures needed to ensure a transparent communication of climate action progress;
  • Enhance mitigation modelling capabilities of partners in target countries in a sustained manner and increase the use of their work by policy makers, including by creating and nurturing policy dialogues between modellers and policy makers, and;
  • Enhance the collaboration between national and EU-based teams through joint studies, workshops, expert matching and research exchanges.

For more information, visit https://futurium.ec.europa.eu/en/re-connect

Contact: [email protected]

About ASEAN Green Future

ASEAN Green Future is a multi-year regional research project, led by the UN Sustainable Development Solutions Network (SDSN), Climateworks Centre, in collaboration with nine country teams from leading Southeast Asian universities and think tanks. These teams conduct quantitative and qualitative climate policy analysis and develop net-zero pathways to provide policy recommendations and support strategic foresight for policymakers.

For more information, visit https://www.unsdsn.org/our-work/asean-green-future/

Contact: [email protected]