SUBSCRIBE
PROFILE

Malaysia strengthens public investment in gas and solar energy

The Malaysian government plans to increase public investment in natural gas and solar energy to reduce coal dependency while ensuring energy cost stability for households and businesses.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99$/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Malaysia is undertaking a strategic revision of its energy policy, focusing on the expansion of natural gas and solar power in electricity generation. The Chief Executive Officer of state-owned utility Tenaga Nasional Berhad (TNB), Megat Jalaluddin, confirmed that this direction will be supported by reinforced public investment to accelerate the transition away from coal. Coal still accounts for 43% of national electricity generation, compared to 37% for natural gas and just over 2% for solar, according to data from energy research group Ember.

A balanced energy mix policy

Authorities plan to add between 6 and 8 gigawatts (GW) of gas capacity by 2030, while doubling the current 9 GW of renewable energy. Solar will play a central role, as its per-unit cost is considered lower than that of gas or coal. Jalaluddin stated that “the best position for the country lies in a balanced energy mix to ensure tariff affordability.” The government’s plan is part of a public investment strategy aimed at modernising production infrastructure and reducing reliance on imports.

Anticipated increase in gas demand

Despite being the world’s fifth-largest exporter of liquefied natural gas (LNG), Malaysia may become an importer within the decade due to rapidly growing domestic demand, particularly from data centres. The power sector currently consumes around 700 million standard cubic feet per day (MMSCFD) of gas, a figure expected to reach 1,000 MMSCFD by 2030. This increase is likely to heighten dependence on imported LNG, which costs approximately 29% more than domestically sourced gas.

Digital infrastructure and territorial planning

At the same time, the government is encouraging a more balanced distribution of investment in data centres, which are currently concentrated in Johor state, home to nearly two-thirds of the national capacity, estimated at 4,000 megawatts. New facilities with a combined capacity of over 500 MW are expected to come online next year in Pahang and Melaka.

The TNB chief executive indicated that this reallocation of public investment reflects a broader effort to ensure equitable energy infrastructure development across the territory. “As the national grid operator, we aim to guarantee a fair distribution of energy infrastructure,” he said.

  • Popular on energynews.pro
Turkey locks in 19 Bcma of LNG, Moscow and Tehran under pressure
Excelerate Energy to build Iraq’s first floating LNG terminal in $450 mn deal
Cameco and Brookfield sign $80bn nuclear partnership with Washington
Talen Energy completes $2.69bn bond financing for two gas-fired power plants
Cypress Creek secures $190mn financing for hybrid solar project in Colorado
ExxonMobil sues California to block climate disclosure laws
Oil major ExxonMobil is challenging two California laws requiring disclosure of greenhouse gas emissions and climate risks, arguing that the mandates violate freedom of speech.
Norway prevails at ECHR over offshore oil licensing dispute
The European Court of Human Rights ruled that Norway’s deferral of a climate impact assessment did not breach procedural safeguards under the Convention, upholding the country’s 2016 oil licensing decisions.
Singapore invests heavily in civil nuclear power and regional energy networks
Singapore strengthens its energy strategy through public investments in nuclear, regional electricity interconnections and gas infrastructure to secure its long-term supply.
Gabon invests FCFA560bn to regulate its gradual exit from oil
As oil production declines, Gabon is relying on regulatory reforms and large-scale investments to build a new growth framework focused on local transformation and industrialisation.
Cameroon to exempt biofuel equipment from customs duties starting 2026 to boost the sector
Cameroon will adopt a customs exemption on industrial equipment related to biofuels starting in 2026, as part of its new energy strategy aimed at regulating a still underdeveloped sector.
Bolivia allows private fuel imports to address supply crisis
Facing a persistent fuel shortage and depleted foreign reserves, the Bolivian parliament has passed an exceptional law allowing private actors to import gasoline, diesel and LPG tax-free for three months.
Ghana targets $16 billion in oil revenues despite declining production
Ghana aims to secure $16 billion in oil revenues over ten years, but the continued drop in production raises doubts about the sector’s long-term stability.
Kinshasa and Vingroup sign agreement for major urban and energy project
The government of Kinshasa has signed a memorandum of understanding with Vietnam's Vingroup to develop a 6,300-hectare urban project and modernise mobility through an electric transport network.
Rising electricity demand in Texas reshapes ERCOT’s energy mix
ERCOT’s grid adapts to record electricity consumption by relying on the growth of solar, wind and battery storage to maintain system stability.
France increases CEE funding to over €8bn for 2026
The French government will raise the energy savings certificate budget by 27% in 2026, leveraging more private funds to support thermal renovation and electric mobility.
France: Minister Barbut defends an energy mix combining nuclear and renewables
Facing opposition criticism, Monique Barbut asserts that France’s energy sovereignty relies on a strategy combining civil nuclear power and renewable energy.
Brussels renews push to end daylight saving time over energy inefficiency
The European Commission is reviving efforts to abolish daylight saving time, supported by several member states, as the energy savings from the practice are now considered negligible.
UNEP, EU and Japan frame methane: 12% responses, LNG under pressure
Rising responses to UNEP’s satellite alerts trigger measurement, reporting and verification clauses; the European Union sets import milestones, Japan strengthens liquefied natural gas traceability; operators and steelmakers adjust budgets and contracts.
France: MPs approve stricter electricity price controls in budget committee
The Finance Committee has adopted an amendment to overhaul electricity pricing by removing the planned redistribution mechanism and capping producers' profit margins.
Brussels launches seven measures to reduce energy prices in Europe
The European Commission unveils a seven-point action plan aimed at lowering energy costs, targeting energy-intensive industries and households facing persistently high utility bills.
Energy remains a political priority for the European Union in 2026
The European Commission plans to keep energy at the heart of its 2026 agenda, with several structural reforms targeting market security, governance and simplification.
Takaichi secures the LDP–Ishin axis, pro-nuclear, and eases fuel taxation
The new Liberal Democratic Party (LDP)–Japan Innovation Party (Nippon Ishin no Kai) axis combines a nuclear restart, targeted fuel tax cuts and energy subsidies, with immediate effects on prices and risk reallocations for operators. —
No evidence of manipulation found in Germany’s late 2024 electricity price surge
German authorities have ruled out market abuse by major power producers during sharp price increases caused by low renewable output in late 2024.
Mozambique bets on its energy resources to support industrialisation by 2030
A new International Energy Agency report urges Maputo to accelerate energy investment to ensure universal electricity access and support its emerging industry.
Spain burns more gas after its blackout
Increased reliance on combined-cycle plants after the April 28 blackout pushed gas use for electricity up by about 37%, bringing total demand to 267.6 TWh and strengthening flows to France.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

START - 99$/year

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.