Kuala Lumpur: Tenaga Nasional Bhd (TNB) has significantly increased its budgeted capital expenditure (capex) to RM42.9 billion, which includes RM26.6 billion in base capex and RM16.3 billion in contingent capex, to advance infrastructure development for Malaysia’s energy transition. President and CEO Datuk Megat Jalaluddin Megat Hassan stated that 64 percent of the contingency capex is allocated for upgrading infrastructure to support renewable energy, the National Energy Transition Roadmap (NETR), and interconnection projects, while 30 percent is designated for potential demand growth, and six percent to maintain supply security.
According to BERNAMA News Agency, TNB’s primary focus is on accelerating decarbonisation. The company aims to increase investments in solar projects (LSS5+, LSS6), battery storage systems (BESS), corporate renewable energy supply schemes (CRESS), and community-based renewables (CREAM). TNB is also advancing efforts in green hydrogen, carbon capture, electric mobility, and smart grid interconnections, which are essential to the ASEAN Power Grid vision.
Megat Jalaluddin reported that TNB currently operates 3.3 gigawatts (GW) of renewable energy in Peninsular Malaysia and 1.1 GW internationally, mainly in the United Kingdom and Ireland. In 2024, TNB secured over 700 megawatt-peak (MWp) of solar projects and achieved financial closure for a 45MWp solar plant in Kulim under the Corporate Green Power Programme (CGPP).
Internationally, TNB manages a combined capacity of 927 megawatts (MW) in solar and wind assets in the UK, Ireland, and Australia. The company has also begun constructing two new solar farms in the UK, totaling 102MWp. Under the NETR, progress is being made on flagship projects such as floating solar, centralised solar parks, and hydrogen projects. A 2.5 gigawatt (GW) floating solar photovoltaic development is underway across TNB’s hydro reservoirs, including a 154kWp installation at Kenyir Dam.
For centralised solar parks, TNB is developing five 150MWp solar parks across Malaysia in collaboration with local partners. The company has secured a supply of 150MWp of green energy to Bridge Data Centres through CRESS. Additionally, TNB is collaborating with Petronas on green hydrogen using solar power from its Kenyir project, with a pilot system currently in place featuring 500kWp solar panels and 1MWh battery storage.
TNB has also secured a 400MWh battery energy storage system project in Sabah, the largest of its kind in ASEAN, and received a 400MWh pilot project for the national grid. The company is venturing into carbon capture and storage to help reduce emissions from thermal plants.
Looking ahead, Megat Jalaluddin expressed optimism for 2025, with economic growth projected at 4.5 percent to 5.5 percent, alongside an anticipated rise in electricity demand of up to 4.5 percent. With the launch of Regulatory Period 4 (RP4) and a promising 7.3 percent return on investment, TNB is confident in scaling up its operations.