The Significant Role of ICT Growth and Innovation in Boosting Renewable Energy Sector Development in Malaysia

Abstract

The global shift toward low-carbon energy systems has prompted governments to expand renewable energy programmes, yet the effectiveness of these efforts depends on a wide range of enabling factors that extend beyond energy technology itself. This study examined whether growth in Information and Communication Technology (ICT), captured through internet and mobile subscription penetration, moderated the development of renewable energy across 30 International Energy Agency member and Southeast Asian countries between 2000 and 2019. Secondary panel data covering renewable energy production and consumption, GDP per capita, carbon emissions, and renewable energy and system patents were sourced from the World Bank, Our World in Data, and the International Energy Agency, and analysed using dimension reduction factor analysis and multiple linear regression. The factor analysis extracted three components, an economic-ICT factor, a renewable energy factor, and a technology-innovation factor, jointly explaining 79.6 percent of total variance. Regression results showed that renewable energy consumption and GDP per capita were the strongest predictors of renewable energy output, while a parsimonious model confirmed that ICT development significantly moderated the relationship between renewable energy consumption and output. However, ICT growth was also found to correlate positively with carbon emissions, suggesting a trade-off linked to the energy footprint of digital infrastructure. The findings imply that internet and digitalisation growth can meaningfully strengthen renewable energy development and should be incorporated into national renewable energy policy design.