Policy Tracker
National Energy Transition Levy
A levy on high-intensity industrial power consumption, ring-fenced to fund grid modernisation and renewable capacity procurement.
Current status
Approved
Levy commences January 2027
Progress
Executive summary
A levy on high-intensity industrial power consumption, ring-fenced to fund grid modernisation and renewable capacity procurement.
Objectives
- 01Fund RM 9b of grid upgrades without new federal borrowing
- 02Signal a long-run carbon price to industrial consumers
- 03Underwrite third-party grid access for independent producers
Implementation timeline
Jan 2026
Policy announced
Apr 2026
Bill tabled
Jul 2026
Dewan Negara committee stage
Jan 2027
Levy commences
Policy record
- Responsible ministry
- Ministry of Energy Transition
- Status
- Approved
- Budget allocation
- RM 9.0b ring-fenced fund
- Announced
- 8 January 2026
- Target
- Levy commences January 2027
Stakeholders
- Energy Commission
- Tenaga Nasional
- Federation of Manufacturers
- State energy regulators
Related documents
Energy Transition Bill 2026
Bill · Apr 2026
Levy incidence study
Research paper · May 2026
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