Renewable Energy
What We Do
Our Renewable Energy practice advises project sponsors, developers, investors, financiers, and corporate offtakers on legal and regulatory aspects of renewable energy projects in Malaysia, including projects with cross‑border elements. We act across the lifecycle of renewable energy developments, from early‑stage structuring and regulatory assessment through project implementation, financing, and ongoing operations.
The practice covers a range of renewable energy technologies and project structures, operating within Malaysia’s energy, electricity, and environmental regulatory framework. Our work focuses on the legal arrangements supporting project development and investment, including contractual frameworks, regulatory compliance, and risk allocation among project participants. We provide advice that is grounded in the commercial realities of energy projects and aligned with applicable statutory, licensing, and policy requirements.
How We Can Assist You
We assist clients from the initial stages of renewable energy projects, including structuring considerations, regulatory feasibility, and the preparation and negotiation of project and commercial documentation. Our work includes advising on development agreements, power purchase and offtake arrangements, joint venture and investment structures, and conditions precedent linked to regulatory and third‑party approvals.
We also support clients through project financing, execution, and implementation, working alongside financiers, technical advisers, regulators, and foreign counsel where required. Post‑completion, we advise on ongoing compliance, contractual management, and regulatory engagement. Throughout each engagement, we focus on managing legal and regulatory risk and supporting efficient project execution within Malaysia’s renewable energy framework.
FAQs
What laws regulate renewable energy in Malaysia?
Renewable energy in Malaysia is regulated under the Renewable Energy Act 2011, together with policies and guidelines issued by relevant authorities. The framework governs licensing, incentives, and integration of renewable energy into the national grid.
What incentives are available for renewable energy projects?
Incentives include feed-in tariffs, tax exemptions, and investment allowances designed to promote renewable energy development. Eligibility depends on project type, capacity, and compliance with regulatory requirements set by relevant authorities.
What is the feed-in tariff (FiT) mechanism?
The feed-in tariff mechanism provides guaranteed payments to renewable energy producers for electricity supplied to the grid. It is intended to encourage investment by offering predictable revenue streams over a specified period.
What licences are required for renewable energy projects?
Renewable energy projects require licences from the Energy Commission Malaysia, as well as compliance with environmental and planning approvals. Requirements vary depending on the scale and type of project.
What types of renewable energy are common in Malaysia?
Common renewable energy sources in Malaysia include solar, biomass, biogas, and hydroelectric power. The government continues to promote diversification of energy sources to enhance sustainability and reduce reliance on fossil fuels.
What is net energy metering (NEM)?
Net energy metering allows consumers to generate electricity, typically through solar panels, and offset their consumption by exporting excess energy to the grid. It is regulated under specific programmes aimed at promoting renewable energy adoption.
What approvals are required for renewable projects?
Projects must obtain environmental approvals, planning permissions, and regulatory licences. Compliance with grid connection requirements and technical standards is also necessary before operations can commence.
What risks are associated with renewable energy projects?
Risks include regulatory changes, technical performance issues, financing challenges, and market fluctuations. Proper structuring and compliance with regulatory requirements are essential to mitigate these risks.
What is green financing in renewable energy?
Green financing refers to funding structures specifically designed for environmentally sustainable projects. It may involve loans, bonds, or investment instruments aligned with sustainability criteria and regulatory frameworks.
Why is renewable energy important for Malaysia?
Renewable energy supports environmental sustainability, reduces carbon emissions, and enhances energy security. It also aligns with national and global efforts to transition towards cleaner energy sources.
Why We Stand Out
Quality
Personalized service from a focused team of lawyers, capable of handling complex, high-value transactions. Agile and client-focused, offering premium expertise without the bureaucracy of larger firms.
Experience
Extensive experience engaging with government-linked companies (GLCs), public-listed companies (PLCs), and private corporations across diverse industries.
Strong capability in handling compliance-heavy projects, corporate governance, and large-scale infrastructure or financing transactions.
Global
Active involvement in LAWorld, a non-exclusive international legal network of nearly 70 independent mid-sized law firms across 100 cities worldwide.
This membership gives MRCO clients instant access to vetted foreign counsel, local expertise, and seamless support for cross-border transactions and disputes.
Digital
MRCO operates as a digitally forward firm, utilizing modern cloud tools and cutting-edge hardware and software. Its meeting rooms feature the latest meeting tools to ensure seamless connectivity, reflecting the absolute commitment to legal innovation in Malaysia today.
Sustainable
MRCO is an ESG-driven law firm, embedding sustainability principles into its daily operations and legal advice.
Actively developing ESG clauses across multiple practice areas and guiding clients toward sustainable business practices aligned with global standards.