Kuala Lumpur:Tenaga Nasional Bhd (TNB) has emphasized the necessity for significant investments in power generation and grid modernization to support Malaysia's evolving energy mix while ensuring the provision of affordable, reliable, and secure electricity.
According to BERNAMA News Agency, TNB's senior chief strategy, regulatory and sustainability officer, Datuk Muhamad Nazri Pazil, highlighted these priorities during a panel discussion at the Youth Economic Forum 2026 held at the Kuala Lumpur Convention Centre. He was joined by representatives from the Ministry of Energy Transition and Water Transformation (PETRA), Solarvest Holdings Bhd, and the Sarawak government to discuss the reshaping of Malaysia's power mix alongside safeguarding energy security and economic competitiveness.
TNB's focus centered on the scale of investment required to secure and prepare the electricity system for increasing demand driven by data centers and electrification. Key priorities include expanding solar generation with energy storage support and developing new combined-cycle power plants that are designed to be hydrogen-ready.
The discussion also addressed the increased adoption of the Corporate Renewable Energy Supply Scheme (CRESS) following a reduction in the excess charge from 20 sen to 14 sen. Last month, PETRA announced that besides this reduction, a 10-year contractual period between Renewable Energy Developers (REDs) and Green Consumers (GC) will be enforced, aiming to provide long-term cost certainty and improve project bankability.
In addition to generation investments, TNB highlighted its commitment to grid modernization to accommodate changing electricity supply sources while maintaining system stability and affordability. An allocation of approximately RM43 billion is set for grid investment under Regulatory Period 4 (RP4), spanning 2025 to 2027, to strengthen and modernize the grid in response to rising electricity demand and increased renewable energy integration.
TNB's generation portfolio is becoming more diversified, with renewable energy accounting for about 26.5 percent of its total generation capacity by 2025, equating to an installed green capacity of 4,303 megawatts. The discussion underscored TNB's role in supporting Malaysia's determined energy mix and developing the technical talent necessary for the energy transition.