MALAYSIA IS AT an energy crossroads, but most Malaysians don‘t even realise it. For decades, the global narrative on energy has been dictated by governments and corporations, controlling what the public sees and knows. The result? A skewed understanding of what is possible, practical and profitable.

The technology for sustainable energy has existed for decades. The issue has never been about feasibility, but rather about politics, business models and vested interests. Consider Jimmy Carter’s solar panels on the White House installed in 1979 as a vision for the future; these were removed by Ronald Reagan in 1986 because they did not align with a fossil fuel-driven economy. The same thing happens today: good technology is overlooked because of bad advice, short-term profits and outdated policies.

Malaysia has been no exception to this pattern. The difference now is that we can no longer afford to sit back and let someone else dictate our energy future. For the first time in the history of Malaysia, we have the opportunity to lead the region in creating a brighter, greener future. We should seize this opportunity; we may never pass this way again.

What Malaysians Actually Want: Energy That Makes Sense

The average Malaysian is not interested in energy policies or carbon credits—they just want electricity that is cheap, reliable and clean. But here’s the catch: most of what’s being sold as clean energy today comes with hidden costs.

Take electric vehicles (EVs). Marketed as green, they rely on lithium-ion batteries that require mining vast amounts of rare earth metals, often under unethical labour conditions. What’s more, Malaysia’s electricity grid still depends on fossil fuels, meaning that charging an EV here is not as clean as it sounds. A slightly “better” option could be hybrid EVs—these vehicles run on regular petrol or diesel or charging, with its internal combustion engine (ICE) operating as a generator, charging its batteries for the vehicle’s all-electric drivetrain.

I’ll Huff and I'll Puff—And Not Much Will Happen

Despite the global push for wind power, Malaysia’s geography and climate make large-scale wind energy impractical. Malaysia sits on the equatorial belt, which means consistent but weak wind speeds nowhere near what is required for efficient wind turbines. This is especially true for Borneo. Unlike the Philippines, which experiences powerful seasonal typhoons, Sabah, Sarawak and Peninsular Malaysia, though sharing the same latitudes, remain relatively untouched by strong winds.

Historical records detail how pirates operating in Borneo’s waters relied on oar-driven skiffs instead of sails. Their vessels were designed for speed and manoeuvrability in calm waters where wind propulsion was unreliable. Low and inconsistent wind persists today. What has changed is that the pirates have exchanged manpower for horsepower to power their skiffs, and guns for cutlasses (a story for another day). However, there are frontier tech companies that could change this in the not-so-distant future.

Malaysia’s real strength lies in sun power. Unlike wind, sunlight is abundant and consistent throughout the year, making solar power a far more logical and scalable choice for the country’s renewable energy future.

The Storage Problem: Can We Move Beyond Lithium?

Energy storage is the key to making renewables work at scale, and yet, most discussions revolve around lithium-ion batteries, which are far from perfect. What if we had better alternatives? There are four fundamental forms of storage: Electrical, Chemical, Mechanical, and Thermal.

The rest are combinations of the above. So, theoretically, we would have: 4 factorial (4!=4x3x2x1=24) ways for energy to be stored. The one we are most familiar with is electrochemical, which is nearly everything we use that is powered by a battery.

1. Saltwater Batteries: A Safe and Sustainable Option

Saltwater batteries have been around for years as anon-toxic, sustainable alternative to lithium-ion. Companies like Aquion Energy had proven their viability before collapsing—not because the tech failed, but because they followed a business model designed for quick returns rather than long-term success. The company was eventually bought out by a Chinese firm and buried under conventional energy interests.[1]

The late Stanley Myers demonstrated back in the 1990s that real-time hydrolysis of water (regardless of purity—read within reason) was possible; to prove that, he drove across Texas in his water-powered dune buggy. State-level news reported his trip across Texas—other related topics are now available on YouTube. Malaysia, and more so Penang, is surrounded by seawater, and could leverage this technology. So, the problem is not the science, it is the market’s resistance to disrupting established battery supply chains, both lithium and ferrous-based technologies.

2. Flywheel Energy Storage: The Tech That Almost Made It

Flywheel energy storage systems store energy mechanically by accelerating a rotor to high speeds and maintaining it as rotational energy. They offer high power density, rapid discharge capabilities and long lifespans.

Case Study: Audi’s Le Mans Innovation

Audi’s R18 E-Tron Quattro, which competed in the 24 Hours of Le Mans, utilised a flywheel-based hybrid system developed in collaboration with GKN Hybrid Power. This system stored energy during braking and released it during acceleration, providing a performance boost. Despite its initial success, Audi transitioned to lithium-ion battery systems in later models, citing advancements in battery technology and energy density as reasons for the shift.

However, with ongoing improvements in materials and engineering, flywheel technology could see a resurgence, especially in applications where rapid energy discharge is essential. Incidentally, the R18 E-Tron Quattro was the first hybrid car to win the Le Mans 24 hour endurance race.

3. Flow Batteries: Commercial But Underutilised

Flow batteries store energy in liquid electrolytes contained in external tanks, making them scalable for grid-level storage. Companies like BASF have partnered with startups to develop and commercialise redox flow batteries. Among their advantages are that they require smaller installations compared to lithium-ion (LiPo) systems (read that as stackable, because of cooling requirements, lithium-ion polymer batteries are not), minus the usual hazards of lithium e.g. thermal runaway. Yet, adoption remains slow due to:

• High Initial Costs: Unlike lithium-ion, which benefits from mass production, flow batteries still need scale to drive costs down. That being said, they do tend to outlive lithium batteries, if salesman talk is to be believed.

• Paradigm shift inertia: The lack of volume equal slack of familiarity of application, which then equals engineering reluctance. If there was engineering acceptance, there would be higher volume which would equal familiarity—a technical catch 22 resulting in sluggish adoption.

• Market hesitation: The industry is slow to shift away from the dominant lithium supply chain—summed up in the old saying “If it ain’t broke, don't fix it”.

Regulatory incentives and industry-wide standardisation could encourage adoption. Governments could support pilot projects to demonstrate their viability in real-world scenarios.

The Immediate Horizon: Malaysia’s Energy Roadmap 2025-2032

1. Solar Energy In Malaysia: Novelty To Necessity

As Malaysia navigates its energy transition, the next three to seven years will be crucial for determining the balance between economic growth and sustainability. Solar remains the most viable renewable energy source, but complementing it with other renewables such as biogas, geothermal and biomass could further diversify Malaysia’s energy mix. Malaysia is in the tropics. We have sun all year. Utilising solar is a no-brainer.

What will require a few more brain cells is how we handle its intermittency. While home solar installations are growing, large-scale solar (LSS) projects will face (I believe) the coming requirement of energy storage systems (ESS) for grid integration. The power grid was designed for centralised fossil fuel generation, not decentralised renewables. If Malaysia is to further enhance solar utilisation, we will need to continually advance our grid policies and guidelines, perhaps also explore other energy storage solutions.

2. Biomass: Feedstock Is Never Ever Enough

“Not enough la, it is that simple”—this is the usual rhetoric when it comes to biomass as a viable renewable energy source. Malaysia’s vast agricultural sector, palm oil in particular produces an abundance of organic waste that could be harnessed for biomass energy. Palm kernel shells, empty fruit bunches (EFB) and other residues hold significant potential for power generation, reducing reliance on fossil fuels. The challenge lies in creating an efficient and sustainable biomass supply chain; current waste management practices are fragmented and underutilised. Without proper collection and processing, much of this waste is discarded or burned, contributing to pollution rather than energy generation.

To overcome these barriers, Malaysia needs stronger policies that incentivise biomass utilisation, from tax benefits for waste-to-energy projects to investments in supply chain infrastructure. Developing regional biomass hubs, where agricultural waste is systematically processed into biofuels or electricity, could create a sustainable energy loop. With the right framework, biomass could become a key component of Malaysia’s renewable energy mix, turning waste into economic value while reducing environmental impact.

The decision to pursue biomass (or not) is a commercial one. It all hinges on critical mass, much like recycling solar modules. Biomass shares the same conundrum of having to reach a critical mass for it to be more attractive. This trend has taken flight and will likely continue as plantation owners make more money by turning their waste into higher value products such as doormats or “netting” to reinforce exposed hill slopes while they are being replanted.

3. Geothermal Energy: Hot But Unbothered

Despite being underutilised, geothermal energy holds promise for Malaysia, particularly in Sabah’s Tawau geothermal field, which has an estimated potential of 30MW. Unlike intermittent solar or biogas, geothermal provides continuous base-load power, making it an attractive renewable energy option. However, high initial investment costs, a lack of local expertise and regulatory hurdles have stalled its development. Additionally, some geothermal sites may be near protected areas, raising environmental concerns that complicate large-scale adoption.

Expanding geothermal beyond Tawau requires public-private partnerships (PPP) with international geothermal experts from countries like Iceland, Indonesia or Japan to de-risk investment and provide technical know-how. A phased approach, starting with direct-use geothermal applications (e.g., for heating in agriculture, aquaculture or tourism) before full-scale power generation, could make adoption more feasible.

Additionally, launching pilot projects in other potential geothermal regions, supported by government incentives and research grants, would help build expertise and prove commercial viability. With the right strategy, Malaysia could integrate geothermal into its energy mix as a reliable and sustainable source.

4. Gas As A Transition Fuel: But For How Long?

Natural gas has been sold as a clean transition fuel for Malaysia, but that’s just clever marketing. The phrase “Baseload is a business model, not a Technology” says it all. Gas power plants exist because they make financial sense for energy providers, not because they are necessary for energy security.

What Malaysia needs is a structured phase-out plan for gas, one that aligns with emerging storage technologies. Instead of being locked into gas infrastructure for decades, we should be using it as a bridge while aggressively scaling renewables and storage solutions like saltwater batteries.

5. The Hydrogen Debate: A Game Changer?

Hydrogen is getting a lot of hype, but is it practical for Malaysia? Well, it depends on how we produce it. Green hydrogen—made through electrolysis using renewable energy—is promising, but energy-intensive. Malaysia has seawater, and theoretically, saltwater electrolysis could work. The works of Stanley Meyer, as mentioned earlier, is evident that it is relatively low-tech to achieve. But until the process becomes commercially viable, we need to focus on what we can implement right now.[2]

The Reality of Waste: Are We Planning For It?

All energy solutions come with waste. The question is whether we plan for it or ignore it until it becomes a crisis. China is already attempting recycling PV panels at the nano level, extracting valuable materials in a laboratory. It may only be a matter of time before this loop is also closed, one step closer to a truly circular economy. Australia is repurposing old panels into construction materials.[3][4] Malaysia, unfortunately, is barely getting started. Again, this is not because we are slow. We are only now approaching the point of critical mass to make this a viable business within our borders—remember the biomass conundrum?

Here lies our opportunity. The first wave of Malaysia’s LSS1[5] projects still has about 10 years before decommissioning. If we start now, we can build a recycling industry before we hit the crisis point. Companies like Zenviro Solar Panel Recycling Sdn Bhd[6] are already in the game, but they need scale to make it viable. Competition is generally healthy, and it would be good to have more than a handful of Malaysian companies involved in this sector.

While Malaysia has been a significant player in the global solar manufacturing sector, geopolitical shifts, such as trade policies implemented by the US, have impacted this dynamic. Donald Trump’s election as US President has forced a realignment to Malaysia’s approach. The US-China trade war triggered back in 2018 (earlier, if you want to be pedantic), and the ongoing conflict in Europe, is accelerating change to the global energy landscape at a pace where policies struggle to keep up with the politics (see Table 1).

Opportunities: Exporting Brain Cells vs. Solar Cells

While these policy changes pose challenges, they also present opportunities. By investing in workforce upskilling, Malaysia can transition from being primarily a manufacturing hub to becoming a centre of expertise in renewable energy technologies. This shift can open avenues for exporting knowledge and services regionally and globally. Anecdotally, it has been highlighted time and time again that Malaysian implementation standards are one of the best (if not THE standard in the region), sometimes outshining its ASEAN neighbours.

From personal experience and interaction with many a foreign multinational entity, I can say that Malaysia shines in terms of the “human side of engineering”, in getting things done according to specifications and standards; and having the diplomacy to request for more resources if the said goal cannot be achieved with the present kit—it is either that Malaysians in general shine when it comes to implementation, or I am the luckiest Malaysian to have encountered so many expatriates who share this notion.

However, before we go high-fiving ourselves, the Philippines presently has the most sophisticated energy market in the region—and we would be wise to take note of and study how the Philippines has succeeded with the Electric Power Industry Reform Act (EPIRA) Republic Act No. 9136.

Safeguarding Energy Security For The Future

So, what can Malaysia do? For the short term—in the next three to seven years—there must be a push for better grid policies to support decentralised solar. Then, we need to kickstart a solar recycling industry before LSS1 projects start decommissioning, and invest in energy storage beyond lithium-ion—saltwater, flywheels and flow batteries.

Our long-term aspiration—looking beyond 2032—should be restructuring the education curricula to include and promote vocational and skills training as a valid route for a career path. We also need to move from being a solar module maker to a global centre for renewable energy expertise.

Despite our resources, talent and geographical advantage, the energy future we want is not going to happen by accident. The only thing we need to do is to maintain the momentum we have already generated (pun intended) to foster and strengthen the political will and public demand to make it happen.

As Malaysia assumes the ASEAN Chair in 2025, it has a unique opportunity to lead the region in fortifying its energy security and resilience. The 1980 film North Sea Hijack serves as a stark reminder of how critical energy infrastructure remains vulnerable to geopolitical risks and disruptions. In the movie’s universe, the destruction of a North Sea oil rig would have sent shockwaves through global markets, much like how Southeast Asia’s energy security could be destabilized by emerging threats—be it cyberattacks, supply chain vulnerabilities or geopolitical tensions. It would seem that in 2025, life imitating art would be the narrative.

Malaysia can use its ASEAN leadership to champion a Regional Energy Security Initiative Alliance (pronounced RESI-alliance, sounding deliberately like “resilience”), fostering deeper cooperation in protecting vital infrastructure, accelerating renewable energy investments and ensuring supply chain resilience. By prioritising innovation, cross-border energy integration and robust security frameworks, Malaysia cannot only future-proof its own energy sector, but also position ASEAN as a global model for sustainable and secure energy transition. A hard but certainly worthwhile way forward.

Footnotes

[1] https://www.greentechmedia.com/articles/read/saltwater-aquion-emerged-from-bankruptcy-new-owner?utm_source=chatgpt.com

[2] https://www.businesswire.com/news/home/20241203440827/en/Salgenx-Unveils-Revolutionary-Saltwater-Redox-Flow-Battery-for-Grid-Scale-Energy-Storage?utm_source=chatgpt.com

[3] https://www.pvindustries.com.au/#process

[4] https://sircel.com/how-we-work/our-process/

[5] Large Scale Solar 1

[6] https://www.zenvirosolar.com/