TNB sets out investment priorities for Malaysia’s energy transition
The utility has allocated about RM43 billion for grid investment under Regulatory Period 4, covering 2025 to 2027.
Tenaga Nasional Bhd (TNB) said Malaysia needs substantial spending on electricity generation and upgrades to its grid as the country’s energy mix changes, with affordability, reliability and supply security remaining priorities.
Datuk Muhamad Nazri Pazil, TNB’s senior chief strategy, regulatory and sustainability officer, identified solar expansion backed by energy storage and new hydrogen-ready combined-cycle plants as priorities. He was speaking during a Youth Economic Forum 2026 panel at the Kuala Lumpur Convention Centre.
TNB said increasing demand linked to data centres and electrification was shaping the investment needed to prepare the electricity system for future requirements. Its allocation of about RM43 billion under Regulatory Period 4 (RP4), covering 2025 to 2027, supports grid upgrades to handle higher demand and integrate more renewable energy.
The panel also discussed increased uptake of the Corporate Renewable Energy Supply Scheme (CRESS) after its excess charge fell to 14 sen from 20 sen. The Ministry of Energy Transition and Water Transformation (PETRA) also announced that contracts between Renewable Energy Developers (REDs) and Green Consumers (GC) will have a 10-year term.
PETRA said the approach aims to give developers, consumers and financial institutions greater certainty over long-term costs and improve project bankability.
TNB said renewables represented approximately 26.5 per cent of its generation capacity as of 2025. Its installed green capacity stood at 4,303 megawatts.
