Kuala lumpur: The Energy Transition and Water Transformation Ministry (PETRA) is set to accelerate Malaysia's shift towards renewable energy and fortify water resource management as the nation enters the fourth year of the MADANI agenda, according to Deputy Prime Minister Datuk Seri Fadillah Yusof.
According to BERNAMA News Agency, Fadillah, who also serves as the Energy Transition and Water Transformation Minister, reiterated the government's commitment to achieving a target of 70 per cent electricity capacity from renewable sources by 2050, as detailed in the National Energy Transition Roadmap (NETR). As of October, Malaysia has reached 31 per cent installed renewable energy capacity, with plans to increase this to 35 per cent by 2030 under the 13th Malaysia Plan (13MP).
The government plans to expand several strategic initiatives to meet these targets, including the launch of the Large-Scale Solar Programme (LSS 6) in early 2026 and an additional 300-megawatt quota for biogas, biomass, and small hydro under the Feed-In Tariff (FiT) scheme. The introduction of the Corporate Renewable Energy Supply Scheme (CRESS) will enable consumers to source green energy directly from producers.
Fadillah highlighted the expansion of the Solar ATAP (Accelerated Transition Action Programme) scheme, which will facilitate more consumers in generating their own electricity. Additionally, the Community Renewable Energy Aggregation Mechanism (CREAM) programme will enable communities to collectively generate energy through aggregated rooftop solar systems. The Low Carbon Energy Generation Programme (LCEGP) aims to diversify non-solar renewable energy sources such as biogas, biomass, and small hydropower.
In the water sector, PETRA's focus will be on strengthening the National Water Policy through an integrated strategy to ensure long-term water security and position the sector as a new economic driver. The policy aims to transform water from a social resource to a dynamic economic asset capable of generating high value.
Fadillah emphasized the importance of integrated water management by reinforcing the National Water Council (MAN) as the primary platform for coordinating policies and strategies between federal and state governments. Chaired by Prime Minister Datuk Seri Anwar Ibrahim, MAN is expected to bridge jurisdictional gaps and enhance water diplomacy to resolve cross-border resource conflicts.
PETRA plans to establish a National Hydrology Data Centre to consolidate water resource data, enabling policies and decisions to be based on scientific data and accurate hydrological forecasts. The ministry is also exploring alternative water sources such as the conjunctive use of groundwater, rainwater harvesting, and desalination technology to reduce reliance on surface water.
Further measures include mainstreaming climate adaptation strategies to ensure standardized and protected land-use planning in water catchment areas to preserve natural ecosystems as flood absorbers and water storage systems.
Regarding water supply services, PETRA aims to strengthen industry governance through Phase II amendments to the Water Services Industry Act 2006 (Act 655), focusing on enforcement, reclaimed water management, and the application of circular economy principles. These amendments are deemed crucial to maintaining sector efficiency, competitiveness, and sustainability.
On financing, PETRA is reviewing alternative funding models for the water sector under the 2040 Water Sector Transformation Plan (AIR2040), including public-private partnerships through the Private Finance Initiative (PFI) to reduce reliance on government funding. This approach is intended to bolster financial resilience and enhance the competitiveness of water operators to ensure the continuity of quality water supply and sewerage services.
In conjunction with the 'Rancakkan MADANI Bersama Malaysiaku' programme, PETRA is organizing advocacy programmes and interactive exhibitions to promote sustainable lifestyle practices and appreciation of energy and water resources. Highlights include the Net Energy Metering 3.0 (NEM 3.0) showcase, the NUR@PETRA (Nikmat Untuk Rakyat @ PETRA) programme, and exhibitions featuring the Langat Sewage Treatment Plant (LRK) model.
Fadillah noted that PETRA's interactive sessions aim to educate the public on the government's ongoing efforts to improve energy efficiency and water management. The ministry hopes these initiatives will increase awareness and encourage Malaysians to adopt sustainable lifestyles that value energy and water resources.