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Renewable Energy is readily available and easy to extract. For the country, biomass utilization leads to substantial economical and environmental gains. For businesses, exploiting renewable resources enhances profit margins and eliminates waste disposal costs. The potential to utilise huge biomass reserves and solar resources allows progressive companies can generate electricity exports, seek regional markets and expand opportunities from lower manufacturing costs.

In the Eighth Malaysian Plan, Renewable Energy was announced as the fifth fuel in the energy supply mix. Renewable Energy is being targeted to be a significant contributor to the country's total electricity supply. With this objective in mind, greater efforts are being undertaken to encourage the utilization of renewable resources, such as biomass, biogas, solar and mini-hydro, for energy generation.

The Government has launched several fiscal incentives to stimulate the emergence of RE activities and technologies. Palm oil mills, sawmills, manufacturers and large institutions can start to benefit immediately by using local technology to generate income and reduce operating costs. Renewable energy resources are available in two primary forms: biomass residues from agriculture wastes (palm oil waste, wood waste, rice husks, etc.), municipal solid waste and energy from the sun.

Many companies are already taking advantage of renewable energy technologies to begin reaping energy cost savings and revenue:

  • TSH Bio Energy Sdn. Bhd. As the first biomass RE project using empty fruit bunches as fuel, the company sold electricity to TNB at 21.25 sen/kwh.
  • Jana Landfill By producing biogas and converting it to electricity, this project, the first RE grid-connected project in Peninsula Malaysia, eventually sold power to TNB at 16.7 seb/kwh.
  • Bekok Kiln Drying and Moulding Sdn. Bhd. By converting a fuel oil boiler to one that burns wood waste, annual fuel savings alone amount to RM 2 million.
  • Awana Kijal Golf & Beach Resort By installing a solar water heating system to supply up to 35% of its consumption needs at a cost of RM 400,000, the resort continues to save on energy and maintenance and paid back its investment in only six years.


For Malaysia, embarking on renewable energy provides benefits that enable the country to remain strong. Among these include an improved balance of trade, foreign exchange savings, more competitive industries, new export markets, employment opportunities, lower consumer prices and a better environment.

Renewable energy is a commodity just like any other form of energy. It has a major role in meeting energy demand needs and combating global warming. Presently, RE represents a prime opportunity to seek alternative energy options. Getting on board with RE today, secures your energy needs for the future.