Malaysia, an oil exporter, plans to spend millions of dollars on promoting the use of solar power in the country over the next five years, the state Bernama news agency said.

The government will contribute a quarter of a planned RM88 million budget for the scheme while the rest will be funded by the private sector and an international environmental group, it said.

Ahmad Hadri Haris, project leader for the photovoltaic or solar energy sector in Malaysia said it was the fastest-growing energy source in the world with expansion of 25-30 percent over the last 15 years.

"Globally, the photovoltaic industry generates revenue of over 10 billion dollars to 12 billion dollars and this includes sales of modules, equipment and system installation," he told Bernama.

Malaysia has said it may consider alternative sources of power, including nuclear energy generation, if the price of oil surpasses 100 dollars a barrel.

Under a fuel diversification policy which started in 1981, Malaysia has promoted the use of natural gas, solar power and biofuel to reduce dependence on oil.