TNB urges billions in generation and grid upgrades to power Malaysia's energy transition

At a panel in Kuala Lumpur, Tenaga Nasional Bhd stressed that substantial capital is required for both power generation and grid upgrades to sustain Malaysia’s shifting energy portfolio without compromising cost or security. Nazri Pazil, TNB’s senior chief strategy, regulatory and sustainability officer, said the utility must fund solar expansion backed by storage and develop new combined-cycle plants designed for future hydrogen use.

He also mentioned the Corporate Renewable Energy Supply Scheme’s excess charge reduction to 14 sen and a new 10-year contract framework aimed at improving project bankability. TNB allocated roughly RM43 billion for grid strengthening and modernisation under Regulatory Period 4, covering 2025-27, to handle higher demand and greater renewable integration. As of 2025, renewable sources account for about 26.5% of TNB’s total capacity, amounting to 4,303 MW. The discussion included representatives from PETRA, Solarvest Holdings Bhd and the Sarawak government, underscoring a coordinated effort to meet national energy goals.