National Energy Policies and the electricity sector in Malaysia

Since its independence in 1957, Malaysia has gone a long way in developing its economy and infrastructures. As one of the fast growing developing nations, its world renowned infrastructures include the Petronas Twin Tower, SMART tunnel and Bakun hydro dam. A key component that enables this growth is its secure, affordable and reliable electricity sector. Eventhough the initial electricity facilities here was constructed by the British during colonization, Malaysia then continue to nurture its development and reliability through her national policies to ensure that it continues to support her growth and prowess. The main national policy involving the electricity sector in Malaysia is the National Energy Policy. It was formulated in 1979 to ensure efficient, secure and environmentally sustainable supplies of energy including electricity. Later other policies were also formulated to address the arising issues and concerns on the energy sector. Among them are the National Depletion Policy, the Four Fuel Diversification Policy and the Fifth Fuel Policy. This paper reviews and discusses their implementation and various impacts on the electricity sector in Malaysia.