Strong Industrial Base Driving Penang’s Rise In Renewable Energy – MPSEA

By Farhana Poniman

GEORGE TOWN, Nov 30 (Bernama) — Penang is on track to become one of Malaysia’s leading states in renewable energy adoption, particularly in solar power, driven by its robust industrial base and rising sustainability awareness.

The Malaysian Photovoltaic and Sustainable Energy Industry Association (MPSEA) said Penang has recorded steady progress in rooftop solar deployment, especially across factories and commercial buildings, with adoption rates among the highest in the country when measured against land size.

“While Penang’s total installed capacity is smaller compared to Selangor and Johor, its penetration rate is relatively high. Interest among small and medium enterprises (SMEs) and households continues to grow steadily,” the association said in a note to Bernama.

It said Penang’s manufacturing and tourism sectors offer strong potential for wider solar adoption, given their high energy demand and the opportunity to strengthen eco-branding through renewable energy integration.

However, MPSEA noted that limited land availability and grid capacity constraints remain key challenges that could affect the pace of large-scale renewable energy deployment.

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According to the association, its members are actively involved in rooftop solar projects within the Penang Free Industrial Zone (FIZ) and other commercial areas, and are anticipating new frameworks under the upcoming Advanced Transition Access Programme (ATAP) following the conclusion of the Net Energy Metering (NEM) scheme.

“Collaborations are also underway with state-linked developers on green industrial park initiatives that integrate renewable energy as part of sustainable zone planning,” it said.

The association added that wider adoption of solar energy would help Penang businesses manage rising operational costs, improve compliance with international sustainability standards such as the EU Carbon Border Adjustment Mechanism (CBAM) and enhance corporate branding.

It said cost savings from renewable energy could be channelled into research, technology upgrades and business expansion, thus supporting long-term growth. 

On manpower readiness, MPSEA said Penang benefits from a strong pool of engineering and electronics talent, supported by expanding Technical and Vocational Education and Training (TVET) programmes focused on renewable energy.

However, it said there is a need for more specialised installers and operations-and-maintenance professionals, especially as project scale increases. 

Looking ahead, MPSEA expects rooftop solar adoption in Penang to accelerate over the next five years, with more hybrid systems integrating energy storage as costs decline.

“The development of green industrial parks and renewable-energy-ready infrastructure will continue to attract investment, solidifying Penang’s position as a key player in Malaysia’s energy transition,” the association added.

— BERNAMA