Malaysia plans 9GW of gas-fired power capacity by 2032 as demand rises, says economy minister

Malaysia plans to expand its gas-fired power capacity to 9GW by 2032 as electricity demand surges, says Economy Minister Akmal Nasrullah Mohd Nasir. The deployment of gas-fired power will coincide with the phased retirement of coal-fired generation by 2044, according to Nasir. The Minister highlighted population growth, higher energy consumption in data centres, and weather-related conditions as factors driving the increase in demand.

Managing energy demand will become as important as managing energy supply in the next five to 10 years, Nasir emphasized, stressing the need for continuous upgrades to the power system, grid, and infrastructure to maintain affordability, safety, and sustainability. In addition to focusing on the megawatts to be added to the system, energy planning must also emphasize energy efficiency and conservation.

The Ministry of Energy Transition and Water Transformation and the Energy Commission will manage this planning, ensuring the country can meet demand while adhering to sustainability goals and reducing carbon emissions. In his keynote address, Nasir outlined three priorities for the next phase of energy reform: creating a competitive and progressive energy market with clear rules, expanding generation capacity supported by a modern, intelligent grid, and treating energy efficiency as a valuable energy resource.

Malaysia has already exceeded its first National Energy Efficiency Action Plan's target, achieving 60,886 gigawatt-hours in savings from 2016 to 2025, which amounted to RM16.1 billion in savings. Under the second plan, Malaysia aims for an 11.6% reduction in energy demand by 2035 compared to a business-as-usual scenario, helping lower energy costs, ease system pressure, and foster a more competitive economy.