BloombergNEF's latest report on Malaysia's power generation, titled 'Malaysia: A Techno-Economic Analysis of Power Generation', underscores the country's transition towards renewable energy and achieving net zero emissions by 2050. The report suggests that by phasing out coal power by 2044, Malaysia can prioritize scaling up renewables to meet its sustainability goals. Solar power has emerged as the most cost-effective option, surpassing gas and coal plants in terms of economic viability. Solar paired with batteries is projected to outperform new gas and coal power plants by 2026 and 2028, respectively. Despite the potential of green hydrogen production in Malaysia's Sarawak state using hydropower, the report indicates that utilizing clean hydrogen and ammonia to reduce emissions from thermal power plants may not be financially competitive compared to renewables. The analysis highlights the importance of focusing on direct renewable energy use and prioritizing clean hydrogen for sectors where direct electrification is not feasible. In 2024, solar power contributed only 3.4% to Malaysia's electricity supply, but BloombergNEF's Net Zero Scenario envisions solar accounting for 39% of the country's electricity by 2050, promoting energy security and emission reduction. The report emphasizes the need for Malaysia to accelerate renewable energy additions and grid capacity expansion while limiting new thermal power capacity to achieve a sustainable energy transition. Overall, the analysis advocates for a strategic shift towards solar power dominance in Malaysia to effectively decarbonize the power sector and advance the country's energy security goals.