Soaring energy prices are a reminder of the essential role that affordable energy plays in sustainable economic growth and higher human development. Safeguarding energy supply, especially from clean indigenous resources, has become more pressing than ever. Current patterns of energy generation and use impact negatively on the environment at local, regional and global levels.

The degradation of our environment due to energy production from fossil fuels, have contributed to a global reevaluation of energy use in all economic sectors. The need for sustainable energy use has become more and more evident. As such, renewable energy is envisaged to become an increasing share of Malaysia’s electricity generation. With abundant sources available, such as biomass and biogas, the palm oil industry is likely to become ever more prominent in adopting renewable energy.

In 2002, the government of Malaysia initiated a project Biomass Power Generation and Cogeneration in Palm Oil Industry (BIOGEN) to help promote the use of renewable energy, with support from the United Nations Development Programme (UNDP), the Global Environment Facility (GEF) and the private sector.

The project’s primary objective is to develop and implement activities that will build stakeholders’ capacity and facilitate the greater adoption of renewable energy system. It focuses on palm oil industries and the use of waste material in generating electricity in the mills and selling it to the grid where possible. The information presented in this publication provides an indication of the efforts being made and the related policy implications.

This is the fourth of a new series of periodic publications that report on UNDP Malaysia’s work in its energy and environment practice area. The large range of projects being undertaken in this portfolio is designed to support Malaysia’s effort to achieve the Millennium Development Goal 7 (MDG7), of ensuring
environmental sustainability.