Malaysia cuts power access fees to boost renewable deals with data centre operators
A 10% reduction in system access charges is expected to accelerate renewable energy contracts between Malaysia's power sector and data centre operators.
RHB Research predicts that lowering system access charges by 10% will hasten renewable power deals with data centre operators, strengthening Malaysia's electricity market. Tenaga Nasional Bhd reported five new data-centre supply agreements in the first half of 2026, amounting to 856 MW, and targets ten contracts for up to 1.5 GW this year, supporting a 5-6% rise in sales. The analyst expects the government to introduce an automatic fuel-adjustment rate for data centres in January 2027 to shield residential customers from fuel-price spikes.
Anticipated announcements of the NEWGEN26 tender winners could favour companies with reserved gas turbines, such as TNB and YTL Power International Bhd, potentially lifting their target prices. Additional opportunities include captive power plants and CRESS projects, with Kinergy Advancement Bhd and Mah Sing Group Bhd exploring joint ventures, and Solarvest Holdings Bhd and Samaiden Group Bhd positioned to benefit from the upcoming Large Scale Solar (LSS6) programme.
Why it matters
The fee cut could speed Malaysia's shift to renewable power for fast-growing data centres, affecting energy markets and climate goals.
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