CHALLENGES OF RENEWABLE ENERGY INDUSTRY IN MALAYSIA
DOI:
https://doi.org/10.55197/qjssh.v7i5.859Keywords:
renewable energy, economy, Malaysia, financial, policyAbstract
The purpose of this study is to highlight the challenges faced by the Renewable Energy (RE) industry in Malaysia. This conceptual review examines previous research and articles on renewable energy in Malaysia and internationally, including current statistics, developments, and the status of renewable energy worldwide. The review covers key areas related to renewable energy, including its definitions, purposes, barriers, problems, challenges, principles, policies, strategies, and recommendations. The findings indicate that one of the major challenges faced by the RE industry is the high initial investment cost, which may discourage investors from financing renewable energy projects. Changes and inconsistencies in policies, together with insufficient government initiatives, also present significant challenges to the development of the industry. Therefore, government initiatives and appropriate measures, support from financial institutions and private investors, and cooperation among energy producers are crucial for ensuring the success and sustainable development of RE companies in Malaysia. This study is limited to reviewing and discussing the challenges affecting the RE industry in Malaysia. Future quantitative research is recommended to provide empirical evidence and further strengthen the existing literature. The findings may assist industry participants, including project developers, technology and product innovators, investors, financial institutions, and policymakers, in improving their knowledge and understanding of the challenges faced by the industry and the strategies that can be adopted. The study may also encourage greater cooperation and collaboration among stakeholders to improve Malaysia’s existing renewable energy structure and policies and support future policy development. Growing concerns regarding climate change and environmental, social, and governance (ESG) issues have increased global awareness of cleaner energy sources and measures to reduce greenhouse gas emissions and environmental impacts. Consequently, increasing demand for clean energy has strengthened the importance of addressing challenges affecting the RE industry.
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