Equinix seeks alternative energy to offset rising power costs in Malaysia. (Photo: Equinix)
To encourage households and businesses to use renewable energy, the Malaysian government has significantly reduced its Green Electricity Tariff (GET) surcharge by as much as 80%. It also introduced an upgraded GET GreenPath scheme, which is designed for large energy consumers such as data centers and supports Malaysia’s ambition to become a regional low-carbon technology hub.
GET shifts to flat rate, drops user-based tiering structure
In line with Malaysia’s new electricity pricing mechanism that took effect in July, the Ministry of Energy Transition and Water Transformation (PETRA) announced changes to how the GET is calculated.
Instead of tiered rates based on user categories, GET now adopts a single flat-rate model. Additionally, users who were previously not affected by the Imbalance Cost Pass-Through (ICPT) mechanism are now seamlessly transitioned into the newly introduced Automatic Fuel Adjustment (AFA) mechanism, without incurring extra charges.
Effective immediately, the GET surcharge has been streamlined to a single-rate structure based on contract duration: 5 sen/kWh (USD 0.012) for a one-year subscription, 4 sen/kWh (USD 0.0095) for two years, and 3 sen/kWh (USD 0.0071) for three years.
Previously, residential and low-voltage non-residential users paid 10 sen/kWh (USD 0.0024), while medium and high-voltage non-residential users paid 20 sen/kWh (USD 0.047). These charges also decreased with longer contract durations. The new flat-rate system represents a reduction of over 80% in some cases.
GET operates on a subscription basis, where users pay a surcharge on top of their regular electricity bill in exchange for government-certified Renewable Energy Certificates (RECs), validating their commitment to decarbonization and sustainability. To accelerate energy transition, the Malaysian government has consistently lowered the surcharge rate, down from a peak of 21.8 sen/kWh ( USD 0.052) in 2023.
According to PETRA, the revised GET offers greater flexibility and affordability, helping build consumer confidence in green electricity procurement. Since the program’s launch in 2021, 3,551 users have subscribed, with total green electricity supplied reaching 10,500 GWh.
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The Malaysian government has significantly reduced the Green Electricity Tariff (GET) surcharge to build consumer confidence in green energy procurement. (Photo: iStock)
GET GreenPath program targets data centers and manufacturers
In addition, PETRA has launched the GET GreenPath program, aimed at high-consumption users such as data centers and manufacturers. It includes a symbolic management fee of 0.2 sen/kWh (USD 0.00047) to avoid adding further barriers to renewable electricity adoption.
The move comes as Malaysia’s new electricity pricing structure significantly increases costs for data centers, which typically rely heavily on grid electricity. Gary Goh, founder of Sprint DC Consulting, estimates that a 100 MW data center could face additional costs of USD 15–20 million.
Mahadhir Aziz, President of the Malaysia Data Center Alliance, warned that the rising tariffs could weaken Malaysia’s competitive edge, pushing data center investments to neighboring countries like Vietnam and Thailand. U.S. tech firm Equinix, which operates two sites in Malaysia, has already begun exploring alternative energy sources to mitigate cost pressures.
Source: Reuters(1), (2), The Edge Malaysia, The Sun
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