Deputy energy transition and water transformation minister Akmal Nasir therefore encouraged more companies in the country to switch to renewable energy to make use of this surplus.

“The renewable energy that we currently generate is still in surplus. We are encouraging more companies that want to meet environmental, social and governance (ESG) practices to use green energy,” he said during the question-and-answer session in the Dewan Rakyat today.

He was responding to concerns raised by Tuan Ibrahim Tuan Man (PN-Kubang Kerian) about the sale of renewable energy to Singapore and the increase in demand from domestic data centres, and whether this could cause Malaysia to fail to achieve its net-zero emissions target by 2050.

Akmal said the ministry remains committed to increasing the mix of renewable energy capacity in the country’s electricity supply from 28% currently to 31% by 2025, 40% by 2035 and 70% by 2050.

He said the gradual and planned increase was to meet the demand for green electricity by data centres, while encouraging new high-value investments to come into the country.

He said the government had introduced the Corporate Renewable Energy Supply Scheme programme to give corporations direct access to a supply of green energy from renewable energy generators via the utility grid network.