TNB calls for power investment as Malaysia’s electricity demand rises
The utility has allocated about RM43 billion to grid investment for 2025 to 2027 as it prepares for greater renewable energy integration.
Malaysia needs substantial spending on electricity generation and upgrades to its grid as data centres and electrification increase demand, Tenaga Nasional Bhd (TNB) said. The utility said investment must support the country’s evolving energy mix without compromising supply reliability, security or affordability.
Speaking at the Youth Economic Forum 2026 in Kuala Lumpur, TNB senior chief strategy, regulatory and sustainability officer Datuk Muhamad Nazri Pazil identified solar expansion backed by energy storage as a priority. He also highlighted the development of new combined-cycle plants designed to be hydrogen-ready.
TNB’s allocation for grid investment is about RM43 billion under Regulatory Period 4, which spans 2025 to 2027. The utility said this spending supports network strengthening and modernisation to handle higher demand and integrate more renewable electricity.
The panel also discussed increased participation in the Corporate Renewable Energy Supply Scheme after its excess charge fell from 20 sen to 14 sen. The Ministry of Energy Transition and Water Transformation said a 10-year contract term between Renewable Energy Developers and Green Consumers will be enforced. It said the approach aims to give developers, consumers and financial institutions longer-term cost certainty and improve project bankability.
Renewables represented approximately 26.5 per cent of TNB’s total generation capacity as of 2025, with installed green capacity reaching 4,303 megawatts.
