Malaysia has announced a new 250 MW Feed-in Tariff (FiT) quota for renewable energy projects for 2027 as part of efforts to expand clean energy generation and attract new investments in the sector.

The Ministry of Energy Transition and Water Transformation (PETRA), through the Sustainable Energy Development Authority (SEDA) Malaysia, said the new quota will be offered to eligible renewable energy developers through an online e-bidding process. The programme will cover projects using biogas, bioenergy (biomass), and small hydropower resources in Peninsular Malaysia and the Federal Territory of Labuan.

Of the total 250 MW quota, 30 MW has been allocated for biogas projects, while 120 MW will be available for bioenergy or biomass projects. Another 100 MW has been reserved for small hydropower projects.

Interested developers can submit their applications through SEDA Malaysia’s official online portal. The application period is scheduled to run from February 3, 2027, to March 24, 2027.

The government expects the latest FiT offering to generate around RM3 billion in total investments. The programme is also expected to support domestic procurement and strengthen local renewable energy supply chains. This includes an estimated RM510 million in local installations of gas engines and boilers associated with the development of eligible projects.

Beyond investment and infrastructure development, the initiative is projected to create more than 5,000 direct and indirect employment opportunities. The government expects the new renewable energy projects to contribute to economic activity while supporting Malaysia’s transition towards a lower-carbon power sector.

The latest FiT quota forms part of Malaysia’s broader renewable energy strategy, which targets increasing renewable energy’s share in the country’s electricity generation mix to 70% by 2050. The approved projects under the new quota are expected to start generating and supplying renewable electricity as early as 2030.

Malaysia introduced its Feed-in Tariff programme in 2011 to encourage investments in renewable energy by providing eligible project developers with a mechanism to sell electricity generated from renewable sources. Since the programme began, a total of 1,660.50 MW of renewable energy capacity has been approved across 9,658 projects nationwide.

The 2027 quota is expected to provide further opportunities for developers operating in biogas, biomass and small hydropower while supporting Malaysia’s long-term renewable energy targets. By encouraging private-sector participation, local procurement and employment, the government aims to strengthen the renewable energy ecosystem and increase the contribution of domestic clean energy resources to the national power system.