Strategic Use of Government Procurement to Spur Renewable Energy Generation in Malaysia

The energy sector plays an important role in Malaysia’s socioeconomic development. However energy production is the largest contributor to air pollution. Malaysia’s emission intensity levels of green house gases (GHGs) in the energy sector are above the global average. In this view, government procurement which refers to the acquisition of supplies, services and works by the government plays a vital role as an economic instrument to promote sustainable use of energy by intensifying the development of renewable energy (RE) and encourage energy efficiency practices. These would ensure continuous supply of energy for future generation, and reduce the negative impact to human and environment. In the context of Malaysia, its huge public expenditure of 24-33% of Gross Domestic Product (GDP) could be used to spur RE generation by integrating RE requirements in constructing or upgrading government buildings. By having this initiative, the government will show its strong commitment towards promoting RE generation and creating a favourable environment for RE development.