TNB: Malaysia needs massive power generation investment now

KUALA LUMPUR, Oct 15 — Tenaga Nasional Bhd (TNB) has emphasized the need for significant investment in power generation and grid modernization to meet Malaysia's evolving energy demands while ensuring affordable, reliable, and secure electricity supply. TNB's senior chief strategy, regulatory, and sustainability officer, Datuk Muhamad Nazri Pazil, discussed these priorities during a panel at the Youth Economic Forum 2026.

The priorities revolve around expanding solar generation with energy storage and developing new combined-cycle power plants that can adapt to hydrogen fuel. The conversation also covered the increasing adoption of the Corporate Renewable Energy Supply Scheme (CRESS), following a reduction in the excess charge from 20 sen to 14 sen per kilowatt-hour.

This scheme, combined with a 10-year contractual period between developers and consumers, aims to provide long-term cost certainty and enhance project viability. TNB allocated approximately RM43 billion for grid investment over the next three years to strengthen and modernize the grid infrastructure, supporting the integration of renewable energy sources.

As of 2025, renewable energy comprises about 26.5% of TNB's total generation capacity, with installed green capacity reaching 4,303 megawatts. The panel discussion underscored TNB's commitment to Malaysia's energy transition while developing the technical expertise required to navigate the changing energy landscape.