top of page

ALECA BLOG

Search

Germany vs. Malaysia: Diverging Paths in the Global Energy Transition



Head-to-Head Comparison

Parameter

Germany

Malaysia

Total Generation

431,700 GWh (2024)

187,300 GWh (2023)

Domestic Consumption


Demand Growth

~Higher than generation 

(Net importer)


Flat demand for the past 10 years with lower heavy industry demand forecasted in the next 10 years

~173,000 GWh 

(Net exporter)


Robust demand growth, 4 - 6% per year for the past 10 years and expected to continue for the next 10 years

Renewable Share

59%

20%

Electricity Price

~MYR 0.40 wholesale

~MYR 1.50 consumer


MYR 0.22/kWh (subsidized)

MYR 0.35/kWh (Industry Average)

Nuclear Energy

Phased out (2023)

No nuclear program

Coal Dependency

Significantly reduced, but slight rise in 2023 & 2024 due to gas shortages (Russian pipeline)

44% of generation

Energy Imports

Net importer of electricity

Reliance on Russian gas

Major coal importer (31M tonnes in 2023) and LNG importer 1 mtpa

Emission-Free Potential

Could have reached 94% reductions with nuclear, but pivoted to gas & restarted coal due to public pressure to phase out Nuclear  

Targeting 70% renewables by 2050

As the world confronts the escalating urgency of affordable energy security, countries are facing pressure to rethink their energy strategies. Germany and Malaysia are two nations on different continents with contrasting economies, resources, and public sentiments.  Together, they offer compelling case studies of how energy policies, technologies, and priorities shape national outcomes. This article provides an in-depth comparison of their energy landscapes, backed by the latest statistics on electrical energy generation, pricing, consumption, and policy motivations.


Germany: Green ambitions amid energy security concerns

Germany has long positioned itself as a global leader in Renewable Energy (RE), spearheading the Energiewende, or "energy transition," policy framework. In 2024, Germany generated ~431,700 GWh of electricity, 4.2% less than the previous year. Renewables dominated the mix, contributing ~254,900 GWh, which amounted to 59% of total generation. Despite this, Germany became a net importer of electricity, marking a significant pivot in its energy self-sufficiency.


Electricity pricing and consumer burden

Electricity in Germany is expensive. It was priced at €78.51 per MWh at the wholesale level in 2024, down from the energy crisis-driven peaks of 2022–2023. However, retail prices for consumers remain among the highest globally, often exceeding €0.30 per kWh due to taxes, surcharges for renewable subsidies, and high grid infrastructure costs.


Why Germany abandoned nuclear energy

In April 2023, Germany officially shuttered its last three nuclear power plants: Isar 2, Emsland, and Neckarwestheim 2. The decision was not based on cost or emissions performance. In fact, nuclear was one of the most cost-efficient and carbon-free sources available. The motivations included:

  • Post-Fukushima safety concerns, particularly around catastrophic failure scenarios (DW, 2021)

  • Unresolved nuclear waste storage challenges, with no long-term solution yet in place

  • Public opposition, rooted in Germany’s strong anti-nuclear tradition and grassroots activism

  • Political strategy, particularly by the Green Party and Social Democrats who capitalized on anti-nuclear sentiment


However, some analysts argue this phase-out was premature. If Germany had maintained its nuclear fleet, it could have achieved 94% emission-free power in 2024, compared to the actual 61%. Additionally, electricity prices might have been 23% lower, and the country could have avoided becoming a net importer (Foro Nuclear, 2024).


Malaysia: Affordable power, but at what cost?

Malaysia, a rapidly developing Southeast Asian nation, presents a very different energy profile. In 2023, it generated approximately ~187,297 GWh (187.3 TWh) of electricity. Domestic consumption was about ~173,000 GWh, leaving a modest surplus.


Energy mix and generation

The energy mix is heavily dependent on fossil fuels:

  • Coal: 44% (≈81,400 GWh)

  • Natural Gas: 36% (≈69,200 GWh)

  • Renewables (mainly hydro and solar): 20% (≈34,520 GWh)


Electricity prices: Low but heavily subsidized

Electricity in Malaysia is among the cheapest in the world. Residential tariffs start at just MYR 0.22 per kWh (~USD 0.047), thanks to generous government subsidies and low fuel costs. For example, coal was imported at around USD 127.75 per tonne in late 2023.


Coal dependency and import risks

Despite having 224 million tonnes of domestic coal reserves, Malaysia imported approximately 31 million tonnes of coal in 2023, mainly from Indonesia and Australia. This reliance on imported fuel subjects Malaysia to:

  • Supply chain vulnerabilities

  • Price fluctuations

  • Geopolitical tensions, especially involving maritime routes like the Straits of Malacca


Health and environmental impacts

Coal combustion has led to significant environmental and public health concerns. Studies have identified SO₂ and particulate matter as major pollutants, particularly affecting children in urban and industrial areas (Pertanika Journal, 2024). In 2022, Malaysia’s CO₂ emissions from fuel combustion were around 37 million tonnes (IEA, 2024).


Policy shift: A renewables future

Malaysia’s National Energy Transition Roadmap (NETR) targets a 70% renewable energy share by 2050, with plans to retire all coal-fired power plants by 2044. The roadmap includes investments in smart grid technology, energy storage, and solar power expansion.


Lessons from two models

Germany’s high-tech, renewable-heavy strategy shows the strengths and vulnerabilities of decarbonizing rapidly, particularly when public opinion overrides economic and environmental optimization. The nuclear phase-out, while politically popular, may have undermined Germany’s ability to offer stable, affordable, secure, and fully clean energy in both the short and long term.


Malaysia, by contrast, continues to benefit from low-cost electricity, but at a high environmental cost. The country's dependency on coal and imports poses strategic risks, while the health costs from pollution are mounting. However, the NETR policy shift signals ambition and pragmatism, with a clear roadmap toward a cleaner future.


Both nations face trade-offs, but by learning from each other’s successes and missteps, they can chart more balanced, resilient energy transition pathways.







References:



 
 

SERVICE APP 

ALECA, now on your phone!

Get ALECA

Our App will be live soon!

bottom of page