National Energy Transition Roadmap (NETR)

This National Energy Transition Roadmap (NETR) is a sectoral document National Energy Transition Roadmap (NETR) that serves as a strategic blueprint to accelerate Malaysia’s energy transition efforts while advancing its green and sustainable growth agenda. It redefines energy generation to enhance climate resilience and plays a pivotal role in transforming the nation from a fossil fuel-dependent economy into a high-value green economy. The NETR reflects the aspirations of all stakeholders, from industry leaders to everyday Malaysians, envisioning a future where economic progress coexists harmoniously with environmental sustainability. The roadmap highlights six key energy transition levers: (1) Energy Efficiency (EE), aiming for 21% energy savings by 2040 (15% residential, 22% industrial/commercial) and 22% by 2050 (20% residential, 23% industrial/commercial) compared to a business-as-usual scenario; (2) Renewable Energy (RE), with a commitment to achieve 70% RE installed capacity in the power mix by 2050 while avoiding new coal power plants; (3) Hydrogen, targeting the complete phase-out of grey hydrogen, the production of up to 2.5 Mtpa of green hydrogen from renewable sources like hydro and solar, and the establishment of three low-carbon hydrogen hubs by 2050, starting with one operational by 2030; (4) Bioenergy, focusing on expanding biorefinery capacity and increasing biomass and biogas power generation; (5) Green Mobility, prioritizing the adoption of sustainable practices and technologies to mitigate transportation's significant contribution to Malaysia's GHG emissions; and (6) Carbon Capture, Utilization, and Storage (CCUS), fostering a cost-effective ecosystem through a cluster-based approach, enabling emitters in the same region to share infrastructure like CO₂ pipelines and storage facilities. The roadmap also outlines pathways for shaping the national energy mix, reducing greenhouse gas (GHG) emissions, and implementing energy transition initiatives. Financing for these efforts will be supported through a combination of grants, loans, rebates, incentives, and other investments, ensuring a comprehensive whole-of-nation approach.
The four guiding principles of the NETR are (1) aligning the energy sector with national aspirations and sustainable development goals; (2) ensuring a just, inclusive, and cost-effective energy transition, addressing challenges for vulnerable populations and benefiting all segments of society; (3) promoting effective governance and collaboration among stakeholders to support a sustainable, low-carbon economy; (4) creating high-impact job opportunities and enhancing SME participation in the energy transition ecosystem.