Regulatory Governance of Small Hydropower in Malaysia and China: A Comparative Study

Abstract

This study examines the regulatory governance of small hydropower (SHP) as a renewable energy source in Malaysia and China through a comparative doctrinal and regulatory document analysis. While SHP is often presented as a lower-impact alternative to large hydropower, its sustainability depends on governance arrangements that ensure institutional coordination, adequate implementation capacity, financing support and environmental compliance mechanisms. The study analyses the legal and policy frameworks governing SHP development in Malaysia and China, with particular attention to incentive structures, administrative coherence and emerging sustainability standards. The findings suggest that Malaysia’s SHP development remains largely incentive-driven under the Feed-in Tariff system but is affected by fragmented governance and limited SHP specific regulatory safeguards. By contrast, China demonstrates stronger integration between legislation, fiscal instruments and provincial implementation, including evolving “Green Small Hydropower” governance initiatives. The study proposes staged regulatory governance reforms for Malaysia aimed at strengthening SHP sustainability, institutional accountability and long-term legitimacy.