TNB: Malaysia needs massive power generation investment now

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) emphasized the necessity for significant investment in power generation and grid modernisation to accommodate Malaysia's evolving energy landscape while ensuring a dependable, economical, and secure electricity supply. During a panel discussion at the Youth Economic Forum 2026, TNB's senior chief strategy, regulatory, and sustainability officer, Datuk Muhamad Nazri Pazil, outlined these crucial priorities alongside representatives from PETRA, Solarvest Holdings Bhd, and the Sarawak government.

The focus of TNB's contribution lies in the scale of investment required to maintain a robust electricity system poised for future demands, particularly from data centres and electrification initiatives. This includes expanding solar generation supported by energy storage and constructing new combined-cycle power plants designed to be hydrogen-ready.

The conversation also touched upon the increasing adoption of the Corporate Renewable Energy Supply Scheme (CRESS) following a reduction in the excess charge from 20 sen to 14 sen. In a recent announcement, PETRA announced that a 10-year contractual period between renewable energy developers (REDs) and green consumers (GC) will be enforced, aiming to provide long-term cost certainty to all parties involved, thereby enhancing project viability.

In tandem with generation investments, TNB underscored a substantial commitment to grid modernisation to accommodate evolving energy sources while preserving system stability and affordability. The utility has earmarked approximately RM43 billion for grid investment under Regulatory Period 4 (RP4), spanning 2025 to 2027. This investment is dedicated to grid reinforcement and modernisation to handle increasing electricity demand and heightened integration of renewable energy sources.

Moreover, TNB's generation portfolio is becoming more diversified. As of 2025, renewable energy constitutes roughly 26.5% of its total generation capacity, with installed green capacity reaching 4,303 megawatts. The panel discussion reinforced TNB's pivotal role in supporting Malaysia's energy transition and cultivating the technical expertise essential for navigating this transformation.