KUCHING: Grid readiness is a central focus in advancing Malaysia’s National Energy Transition Roadmap (NETR), with Sarawak advancing preparations using revenue from its carbon levy to support infrastructure development, says an industry expert.
Senior Manager of Corporate Strategy at Solarvest Holdings Berhad, Eddy Lee Wen Hui, said Malaysia would need to accelerate its energy transition efforts by at least two to three times than the current pace to meet the ambitions outlined under the NETR.
While the solar industry continues to experience strong growth, with the market currently adding about four gigawatts of solar capacity annually, Lee said the country’s electricity grid remains inadequately prepared to accommodate a large influx of renewable energy.
“The market is good for solar, but the grid is still not ready for so much intermittent power going into the system,” he said during a panel discussion on Clean Energy Integration for a Sustainable Energy Supply at the Asia Pacific Green Hydrogen (APGH) Conference and Exhibition 2026 held here on Wednesday.
He explained that integrating renewable energy is not simply a matter of installing more solar panels and batteries, as the grid must also be capable of managing frequency regulation and voltage fluctuations caused by intermittent energy sources such as solar power.
“Sometimes your grid needs to be able to withstand the frequency regulation and the fluctuation of voltage caused by intermittent power like solar,” he said.
Lee noted that significant investments would be required to strengthen transmission and distribution infrastructure nationwide, describing the grid as the primary bottleneck in Malaysia’s clean energy transition.
He said Sarawak Energy faces similar challenges, but commended the state’s proactive approach in preparing for future energy demands.
“Same as Sarawak Energy, the grid needs to be upgraded, and this requires tens of billions of ringgit in investments,” he said.
According to Lee, Sarawak’s implementation of a carbon levy last year represents a key step in creating a sustainable financing mechanism for the state’s energy transition agenda.
He said revenue generated from the levy could be channelled into a dedicated transition fund to support strategic projects, including major grid enhancement works by Sarawak Energy.
“This fund is very important because it is going to finance transition projects. A big part of it can be used to support grid upgrades,” he said.
Lee added that Peninsular Malaysia would likewise require substantial investments, estimating that between RM50 billion and RM100 billion may be needed over the next five years to prepare the national grid for higher levels of renewable energy integration.
“Same for West Malaysia, they need to spend at least 50 to 100 billion in the next five years. Then only the solar and battery can come into the grid, according to the NETR plan.
“So definitely the climate change fund needs to be set up, the carbon tax in West Malaysia needs to be expedited. Then only we will see a very seamless flow of public funds to upgrade the public infrastructures, especially the utility grids,” he said.
