Offshore Wind Project To Boost Malaysia's Renewable Energy Capacity - Fadillah

KUALA LUMPUR, Oct 22 (Bernama) -- An offshore wind energy project connecting Vietnam to Peninsular Malaysia is projected to generate up to 2,000 megawatts (MW) of capacity by 2034, marking a significant leap in the nation's renewable energy capabilities.

The Minister of Energy Transition and Water Transformation, Datuk Seri Fadillah Yusof, said that 700 MW will be allocated for domestic use, while the remaining 1,300 MW will be channelled to Singapore via the national transmission grid.

He explained that the project will be executed in two phases: the construction of a subsea cable from Vietnam to the Peninsula, and establishing an overland connection through Cambodia, Laos and Thailand.

"The transmission line within the Peninsula will be reinforced, from the subsea cable's landing point in Kelantan, passing through Terengganu, Pahang, Negeri Sembilan and Johor. This work commenced in May 2025, with a target operational date set for 2030," said Fadillah during the question-and-answer session in Dewan Rakyat today.

He added that the reinforced grid would stabilise the national electricity supply and generate returns from exports to Singapore.

Fadillah was responding to a question from Datuk Mumtaz Md Nawi (PN-Tumpat), who requested details on the wind energy project from Vietnam, and the strategy for developing green energy projects on the east coast of Peninsular Malaysia within the ASEAN framework.

Elaborating that green energy projects currently being developed in Malaysia are exclusively for domestic use, he explained that such projects are undertaken by qualified industry players or energy developers based on commercial viability, technical suitability and local grid capacity. 

Answering a supplementary question from Mumtaz regarding the revenue-sharing formula between the Federal and state governments, Fadillah said the project is expected to provide significant economic benefits to the involved states, such as land lease opportunities, participation for local contractors and revenue from energy infrastructure rentals.

He added that state governments also have the opportunity to become co-shareholders in projects implemented via a Request for Proposal process.

“State governments can participate either as shareholders or through land leases and by providing land for transmission tower routes,” he said, adding that open tenders would be managed by Tenaga Nasional Berhad or the joint venture company executing the grid connection.

-- BERNAMA