Lip-Wah Ho

A review of global wind energy development shows that successful projects depend heavily on a sound and robust regulatory framework supported by strong and consistent political will. This dependence is not observed in Malaysia, where the government continues to subsidise private independent fossil fuel power producers but levies taxes on electricity consumers to fund RE development. These levies do not effectively support RE development, given the magnitude of the RE fund compared to fossil fuel subsidies. In the absence of strong and sincere political will, the progress of RE development in Malaysia has been notably slow. As a result, the prospect of wind energy development in Malaysia currently remains vague. This paper discusses the above issues in detail and recommends selected regulatory mechanisms based on the global experience of supporting RE development in Malaysia.