Energy Transformation in Malaysia: Sustainable Pathways for the Energy Sector

This study evaluates three scenarios using the OSeMOSYS model: Business-As-Usual (BAU), Renewable Energy Scenario (RES), and Carbon Tax Scenario (CTS). Under BAU, fossil fuels dominate the generation, and emissions will rise 92% by 2050. RES achieves a 55% in electricity generation mix by 2050 and phases out coal by 2040. It is supported by transport electrification, but the power sector remains a major emitter. CTS offers the most cost-effective pathway, combining a carbon tax with CCS deployment in power and industry sectors, reducing emissions by 64.6% relative to BAU. The residual emissions are expected to offset via land use, land-use change and forestry.