Electricity is the backbone of almost every aspect of an economy-from industrial to commercial, to transport and agricultural sector. This book examines the current and potential policy interventions towards low-carbon electricity production in Malaysia by using agent-based computational economics. We construct a flexible agent-based model with seven types of agents (electricity producer, government, consumer and the enviroment), including three markets (electricity, fuel and carbon markets). Under the current policy senarios, the simulation experiments reveal the dominance of coal in the energy mix except when renewable energy policy goal is archived. The implementation of natural gas subsidy (NGS) has been less ineffective in displacing coal aand hence contribute little to the decarbonization process of the sector. A Price on carbon could drive investment in renewable energy policy (REP) and reduce emissions. Thus, an emission trading scheme (ETS) is proposed and showed quite positive results. The emission intensity of the electricity sector when ETS is implemented together with EE2 and REP can be reduced up to 73% compared to 2005 level with the high-level deployment of renewable energies and moderate effects on wholesale electricity price.