Government support through policy formulation and provision of a conducive infrastructure is undeniably vital towards determining the direction of the development of renewable energy in this country. Among the infrastructure and programmes drafted for the development of renewable energy is creating a renewable energy implementation policy, incorporating legal, national development / economic, funding and financing, and incentives / taxation aspects, as well as studying the legal frame for renewable energy development legislation.

Apart from this, the Government is creating a conducive environment for renewable energy development by offering subsidies and tax exemptions, creating a renewable energy pricing system for a planned and organised RE development, determining a fair interconnection procedure and a transparent metering policy to expand RE integration as the fifth fuel source, increasing forums for parties involved in the RE industry for negotiations and exchange of ideas, and strengthening capacity building.

In 2006 the Government also prepared a draft framework to formulate an RE Implementation Policy in Malaysia. This framework will become the basis to the formulation of a national plan of action for RE Policy that will outline a focus on the types of RE with potential; resource mapping; legal framework; policies; and the financial infrastructure required to encourage the development of RE.

In addition, a national forum on renewable energy was held on 21 September 2006 at the Putrajaya international convention centre, which involved the industry to gather views and feedback from the private sector on policies and efforts by the Government to develop RE in Malaysia. The forum attracted 350 participants from the public and private sectors. The input received from the forum is valuable in assisting the Government formulate a new RE development direction through the formulation of the RE Masterplan in Malaysia.