Budget 2027: TNB to invest RM15b to strengthen national power grid

Malaysia's state power utility TNB has announced plans to invest RM15 billion in strengthening the national electricity grid under Budget 2027. This investment comes as Malaysia accelerates its energy transition to ensure long-term power supply security amidst global geopolitical uncertainties.

As part of the budget allocation, UEM Lestra, a key investor, will contribute RM1 billion towards energy projects. One of these projects includes a 1-gigawatt hybrid energy project in Johor, while another involves an energy storage facility at Kuala Lumpur International Airport.

The Malaysian government is also leveraging green financing through the RM1 billion KWAP Climate Fund to support projects related to renewable energy and decarbonisation. To aid households in managing increased electricity consumption during hot weather, the NUR MADANI programme will provide rebates of up to RM200 for the purchase of energy-efficient air conditioners and refrigerators.

In addition, the government will extend tax incentives for companies investing in green and sustainable technologies until December 31, 2030. Companies engaged in green technology projects and electric vehicle charging station projects will be eligible for Investment Tax Allowances of up to 100%, as well as those purchasing green technology assets for their own use.

These measures aim to spur private-sector investment in cleaner technologies, bolster Malaysia's energy resilience, and support the country's long-term decarbonisation goals, all while addressing the challenges posed by global geopolitical uncertainties.