Kuala lumpur: Malaysia expects about nine gigawatts (GW) of gas-fired power capacity to be deployed by 2032 as the country manages growing electricity demand while progressively phasing out coal-fired generation. Minister of Economy Akmal Nasrullah Mohd Nasir highlighted this development, stating that the capacity would be part of efforts to meet energy needs, with the last coal-fired power plant expected to retire in 2044.
According to BERNAMA News Agency, Akmal Nasrullah pointed out that energy demand is on the rise, driven by factors such as population growth and increased consumption from energy-intensive sectors like data centers. "In terms of the projection for energy demand, definitely we see a pattern of increase. One is population growth. But number two, there is also an increase in energy consumption by high-usage sectors such as data centres," he remarked, following the Energy Regulatory Insights 2026 event. He also mentioned that weather and climate conditions could further influence energy demand patterns, especially as higher temperatures increase the need for cooling systems and air conditioning.
Against this backdrop, Akmal Nasrullah emphasized the importance of managing energy demand alongside supply in the coming years. He stated, "I think for the next five to 10 years, Malaysia must really remain disciplined enough to ensure our system is continuously upgraded, not just in terms of the power produced, but also the grid and infrastructure, so that our system remains affordable, safe and sustainable." He advocated for energy planning that includes both deployment of megawatts and energy efficiency and conservation efforts.
The planning process should be overseen by the Ministry of Energy Transition and Water Transformation and the Energy Commission, ensuring Malaysia can manage demand while committing to sustainability and reducing the carbon footprint of its energy sector. In his keynote address, Akmal Nasrullah outlined three priorities for the next phase of energy reform: a competitive and progressive energy market with clear rules, grid modernization under the 13th Malaysia Plan, and treating energy efficiency as a standalone resource.
He noted that the first National Energy Efficiency Action Plan (NEEAP) surpassed its original target, achieving cumulative electricity savings of 60,886 gigawatt-hours, equivalent to RM16.1 billion in savings from 2016 to 2025. Under NEEAP 2.0, Malaysia aims for an 11.6 percent reduction in energy demand against the business-as-usual scenario by 2035, which is anticipated to help lower energy costs, reduce system pressure, and support more productive and competitive economic activities.