Malaysia generates most its electric power from fossil fuels, natural gas (57%), coal (24%), and petroleum (6.4%). THe rest is from hydro, biomass and other sources. Its total installed capacity was estimated be be over 24 GW in 2010. The National Renewable Energy Policy and Action Plan targets 11% of the country's electric power from renewable energy by 2020.
In April 2011 an Advanced Renewable Tariffs (feed-in tariff) system and renewable energy targets were passed by the Dewan Rakyat (Malaysian House of Representatives) to take effect beginning in September. The eligible types of renewable energy for the FiT program are biomass (typically palm oil waste susch as empty fruit bunches, tree fronds, trunks, fibres and shells), biogas (typically from methane capture of palm oil mill effluent), mini-hydropower and solar photovoltaic (PV). Like in Ontario the FiT program pays different rates depending on the type of renewable energy and the size of the facility. The highest rates RM 1.23 to 1.14 per kWh (C$ 0.40 to 0.37/kWh) are paid for solar PV with under 1 MW generating capacity.
By 2020, Malaysia expects to have installed more than 3 GW of new renewable energy, of which one-third will be solar PV and another one-third from biomass. Similar to cane-sugar waste (bagasse) which generates something like 3% of Brazil's power, it is estimated that up to 20% of Malaysia's power could be generated from palm oil biomass and biogas by 2020.