TNB–ACWA Power Partnership: Driving Malaysia’s Energy Transition
By Engku Shariful Azni Engku Ab Latif
KUALA LUMPUR, Aug 27 (Bernama) -- Malaysia is pushing hard to achieve the National Energy Transition Roadmap (NETR) target of raising renewable energy (RE) to 70 per cent of the nation’s capacity by 2050, with the government, agencies, companies and industry players all working together towards this goal.
Among others, Tenaga Nasional Bhd (TNB) has always spearheaded its strategic initiatives through various sustainable energy projects in order to achieve the government’s aspiration.
Last May, TNB's wholly-owned subsidiary, TNB Power Generation Sdn Bhd (TNB Genco), partnered with a Riyadh-based company, ACWA Power, to explore and develop projects that accelerate the country's shift towards cleaner, more efficient energy solutions.
The projects include the Hybrid Hydro Floating Solar (HHFS), which is expected to generate up to 1 gigawatt (GW) of capacity at Kenyir and Puah Reservoirs, Terengganu, forming part of TNB’s 2.5 GW flagship NETR project.
They also involve an Integrated Water and Power Project (IWPP), which consists of a 2.1 GW combined-cycle gas turbine plant and a 400,000-cubic-metres-per-day seawater reverse osmosis desalination facility at Pulau Carey, Selangor, as well as the exploration of green hydrogen, renewable and desalination ventures globally.
Commenting on the partnership, Prime Minister Datuk Seri Anwar Ibrahim said ACWA Power’s commitment to choose Malaysia to house its main hub in Southeast Asia has strengthened the country’s position as a key player in regional sustainable energy and supports efforts toward a low-carbon economy.
ACWA, as the world’s largest water desalination company, invests in clean energy infrastructure in Malaysia. He said it would open up high-skilled job opportunities and drive technology transfer in the country.
Echoing Anwar, UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the partnership marks a pivotal structural shift in Malaysia’s renewable energy trajectory, anchored by a planned capital deployment of US$10 billion (US$1=RM4.21) to deliver 12.5 GW of capacity by 2040, while strategically aligning with the NETR and the New Industrial Master Plan (NIMP) 2030.
He also said that the TNB–ACWA Power collaboration establishes a benchmark for international collaborations, aligning public and private stakeholders with Malaysia’s long-term energy transition objectives.
“ACWA Power’s Saudi backing signals strong investor confidence, which is likely to draw additional global entrants from ASEAN, the Middle East, and Europe.
“The export potential of renewable investments further suggests that Malaysia could leverage this partnership to expand its presence in regional energy markets,” he told Bernama.
As the partnership serves as a powerful catalyst for Malaysia’s RE ambitions, it would also accelerate the country's shift towards a low-carbon economy, while attracting international investment, fostering technology transfer, and creating high-skilled jobs, positioning the country as a regional hub for sustainable energy projects.
HHFS: A Game-Changer for Malaysia’s Clean Energy
The HHFS project integrates hydro and floating solar technologies to maximise clean energy output from existing infrastructure.
Although still under development, it exemplifies the type of integrated renewable solution that can provide both environmental and operational advantages once completed.
Driven by a strategic collaboration between TNB and ACWA Power, the project is designed to boost clean energy generation, enhance grid reliability, and advance Malaysia’s climate goals.
Rather than being just RE projects, there are numerous benefits from the spillover effects that come from the HHFS, such as job creation in operations and maintenance (O&M) and the development and construction phases, growth in tourism, education and commercial sectors, and investment for the local industry and green economy.
Given the high potential of the project, Global Asia Consulting Ltd senior consultant Samirul Ariff Othman suggested that the HHFS model could be replicated in other places, at a lower cost. He said the project could be replicated across Temenggor or Chenderoh at the Perak scheme and other reservoirs, standardising designs and procurement.
“The replicated projects use existing hydro interconnections to avoid long transmission builds, and might as well use modular floating power vessels with standardised mooring systems and quality assurance/quality control specifications to speed up engineering, procurement, and construction timelines,” he said.
If the HHFS project is replicable, it would open the door to more partnerships and investments for additional projects, thereby expanding the energy grid in Malaysia and positioning the country as a regional leader in the energy sector.
TNB: Forward-Looking in Adopting Integrated Renewable Solutions
With strategic partnerships and flagship projects, TNB has positioned itself as a leader in integrated renewable solutions, beyond just electricity.
Mohd Sedek said the collaboration optimises land use and boosts RE capacity, supporting TNB’s goal of 70 per cent RE by 2050, while ACWA Power’s expertise in renewables, with a planned 12.5 GW capacity by 2040 and a US$10 billion investment, strengthens Malaysia’s clean energy infrastructure.
He said ACWA Power’s global experience in desalination, paired with TNB’s local knowledge, would also enable energy-efficient water production, supporting Malaysia’s net-zero emissions target by 2050.
“Additionally, exploring green hydrogen and ammonia co-firing helps decarbonise TNB’s thermal plants, enhancing grid sustainability.
“By integrating renewable energy with water solutions, the partnership supports sustainable development and regional energy goals, such as the ASEAN Power Grid,” he said.
The collaboration has also positioned TNB beyond the role of a traditional power utility, evolving into a broader sustainable infrastructure company.
Its partnership with ACWA Power underscores this trajectory, drawing on ACWA’s global expertise in integrated energy-water projects to accelerate capability development and strengthen TNB’s technical depth, Sedek added.
Looking ahead, the TNB–ACWA Power alliance could serve as a blueprint for future international collaborations, amplifying Malaysia’s role in the regional clean energy transition.
By unlocking investments, fostering innovation, and creating high-skilled job opportunities, the partnership not only drives economic growth but also accelerates Malaysia’s ambition of becoming a renewable energy leader in Southeast Asia.
Ultimately, this collaboration demonstrates how combining local strengths with global expertise can catalyse transformative progress, positioning Malaysia at the forefront of sustainable energy and ensuring long-term benefits for its people, economy, and the environment.
-- BERNAMA