Malaysia’s new 250MW renewable energy quota under the Feed-in Tariff (FiT) programme for 2027 is expected to attract RM3 billion in investment and create more than 5,000 direct and indirect jobs, according to the Ministry of Energy Transition and Water Transformation (Petra).
The quota will support new renewable energy projects across biogas, biomass and small hydropower in Peninsular Malaysia and the Federal Territory of Labuan. Petra said the programme is designed to expand renewable electricity generation while supporting the country’s longer-term target of increasing renewable energy’s share of electricity supply to 70% by 2050.
Biomass receives largest share of 2027 FiT quota
Of the 250MW available under the new quota, 120MW is allocated to biomass projects, making it the largest allocation.
Biogas projects will receive 30MW, while 100MW has been set aside for small hydropower projects.
The allocation provides a route for eligible renewable energy developers to participate through an e-bidding process administered through the Sustainable Energy Development Authority Malaysia (Seda Malaysia).
Applications are scheduled to open on February 3, 2027, and close on March 24, 2027.
Petra said the government expects the new FiT quota to generate RM3 billion in investment, including RM510 million in purchases of locally installed gas engines and boilers.
The expected local equipment spending indicates that the programme could support activity beyond project development itself, particularly among suppliers involved in renewable energy generation infrastructure.
Projects expected to supply renewable electricity from 2030
The government expects approved projects under the new quota to begin generating and supplying green electricity as early as 2030.
The timeline positions the 2027 FiT allocation as part of Malaysia’s broader effort to expand renewable generation capacity and move towards its 2050 renewable energy target.
For the biogas and biomass segments, the quota could also create additional opportunities for projects using renewable feedstocks to generate electricity, although the ministry’s announcement does not provide a project-level breakdown of the technologies or feedstocks expected to be used.
FiT programme has approved 1,660.50MW since 2011
The latest allocation builds on more than a decade of Malaysia’s FiT programme.
According to Petra, 1,660.50MW of renewable energy capacity has been approved across all renewable energy sources since the programme was introduced in 2011. These approvals cover 9,658 projects nationwide.
The 2027 quota therefore adds another 250MW to the pipeline of renewable energy projects eligible to participate in the FiT mechanism, with biogas, biomass and small hydropower accounting for the entire new allocation.
The government’s expectation of RM3 billion in investment and more than 5,000 jobs underscores the economic role it sees for renewable energy expansion alongside the transition in Malaysia’s electricity system.
Bioenergy Business Analysis
The 2027 FiT allocation gives Malaysia’s biomass and biogas sectors a defined route for adding new renewable electricity capacity, with biomass receiving almost half of the total 250MW quota and biogas accounting for another 30MW. The expected RM3 billion investment also points to a wider economic impact across project development and equipment supply.
For the bioenergy industry, the key development is the dedicated capacity allocation for both biomass and biogas, alongside the government’s expectation that approved projects can begin supplying electricity from 2030. The scale of the quota and the projected local equipment purchases could strengthen the role of bioenergy within Malaysia’s longer-term renewable electricity expansion.
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