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Malaysia’s Electricity Decarbonisation Pathways: Exploring the Role of Renewable Energy Policies Using Agent-Based Modelling

Author

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  • Kazeem Alasinrin Babatunde

    (Institute of Informatics and Computing in Energy, Universiti Tenaga Nasional, Kajang 43000, Malaysia)

  • Moamin A. Mahmoud

    (Institute of Informatics and Computing in Energy, Department of Computing, College of Computing and Informatics, Universiti Tenaga Nasional, Kajang 43000, Malaysia)

  • Nazrita Ibrahim

    (Institute of Informatics and Computing in Energy, Department of Informatics, College of Computing and Informatics, Universiti Tenaga Nasional, Kajang 43000, Malaysia)

  • Fathin Faizah Said

    (Center for Sustainable and Inclusive Development Studies (SID), Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), Bangi 43600, Malaysia)

Abstract

Coal’s rising prominence in the power industry has raised concerns about future CO 2 emissions and energy reliability. As of 2017, it is estimated that Malaysia’s existing natural gas production can only be maintained for another 40 years. Consequently, the carbon intensity of electricity production has increased due to the increasing share of coal-fired plants and electricity infrastructure inefficiencies. To summarise, energy industries have been the highest emitters of CO 2 emissions, with a 54-percent share. In response to these challenges, the government implemented a series of renewable energy (RE) policy measures. Whether these policies are sufficient in driving Malaysian energy decarbonisation is yet to be seen. In this study, we simulated different scenarios from 2015 to 2050 with an agent-based model to explore the roles of renewable energy policies towards emission reduction in the energy sector. The simulation results reveal that when all renewables initiatives were implemented, the share of RE increased to 16 percent, and emissions intensity fell by 26 percent relative to its level in 2005, albeit with increasing absolute carbon emissions. This milestone is still far below the government’s 45 percent reduction target. The simulation results demonstrate that renewable energy policies are less effective in driving Malaysian electricity towards desired low-carbon pathways. Furthermore, it is evidenced that no single approach can achieve the emission reduction target. Therefore, a combination of energy efficiency and renewable energy policy measures is unavoidable to decarbonise the electricity sector in Malaysia.

Suggested Citation

  • Kazeem Alasinrin Babatunde & Moamin A. Mahmoud & Nazrita Ibrahim & Fathin Faizah Said, 2023. "Malaysia’s Electricity Decarbonisation Pathways: Exploring the Role of Renewable Energy Policies Using Agent-Based Modelling," Energies, MDPI, vol. 16(4), pages 1-15, February.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:4:p:1720-:d:1062785
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