TNB: Need for generation, grid investment to support Malaysia's energy transition

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) said there is a need for substantial investment in power generation and grid modernisation to support Malaysia's changing energy mix while maintaining affordable, reliable and secure electricity supply.

Its senior chief strategy, regulatory and sustainability officer Datuk Muhamad Nazri Pazil outlined these priorities during a panel discussion at the Youth Economic Forum 2026 at the Kuala Lumpur Convention Centre.

He joined representatives from the Ministry of Energy Transition and Water Transformation (PETRA), Solarvest Holdings Bhd and the Sarawak government to discuss how Malaysia can reshape its power mix while safeguarding energy security and economic competitiveness.

TNB's contribution focused on the scale of investment required to keep the electricity system secure and ready for future needs as demand from data centres and electrification continues to rise.

The priorities include expanding solar generation supported by energy storage and developing new combined-cycle power plants designed to be hydrogen-ready, he said.

The discussion also covered growing uptake of the Corporate Renewable Energy Supply Scheme (CRESS) following a reduction in the excess charge to 14 sen from 20 sen.

Last month, PETRA announced that besides the reduction is excess charge, a 10-year contractual period between the Renewable Energy Developers (REDs) and Green Consumers (GC) will be en

forced.

It said the approach is intended to provide long-term cost certainty to REDs, GCs and financial institutions, thereby improving project bankability.

Alongside investment in generation, TNB highlighted an equally significant commitment to grid modernisation to accommodate changing sources of electricity supply while maintaining system stability and affordability.

TNB has an allocation of about RM43 billion for grid investment under Regulatory Period 4 (RP4), covering 2025 to 2027.

The investment supports grid strengthening and modernisation to accommodate rising electricity demand and greater integration of renewable energy.

TNB's generation portfolio is also becoming more diversified.

As of 2025, renewable energy accounted for approximately 26.5 per cent of its total generation capacity, with installed green capacity of 4,303 megawatts.

The discussion reinforced TNB's role in supporting the nationally determined energy mix and developing the technical talent needed to carry the sector through the energy transition. — BERNAMA