Malaysia to convert coal-fired power plants into renewable energy hubs

Malaysia remains committed to building no new coal-fired power plants, toward phasing out coal-fired electricity generation by 2044 and increasing the share of renewable energy to 70% of the country's installed power generation capacity by 2050.

Kuala Lumpur (VNA) – Malaysia plans to repurpose sites of retiring coal-fired power plants into renewable energy (RE) hubs and battery energy storage facilities to support its power sector's emissions reduction roadmap.

Malaysia's Deputy Prime Minister Datuk Seri Fadillah Yusof said on July 2 that the country's existing coal-fired power plants represent significant national infrastructure, including transmission connections, industrial facilities and strategically located land.

Addressing the closing session of an in-depth discussion titled "Malaysia's Energy Future: Power Sector Decarbonisation Deep Dive", organised by the World Economic Forum, Fadillah emphasised that these assets should not be left idle when coal-fired power plants cease operations, but instead should be viewed as opportunities to create new economic value.

According to the official, several sites have strong potential to be transformed into renewable energy hubs, battery energy storage facilities and other clean energy projects, enabling them to continue contributing to local economic development while supporting the country's energy transition goals. He said the retirement of coal-fired power plants would create opportunities for new industries, attract investment and prepare the workforce for the future economy.

He added that Malaysia remains committed to building no new coal-fired power plants, toward phasing out coal-fired electricity generation by 2044 and increasing the share of renewable energy to 70% of the country's installed power generation capacity by 2050.

The Deputy Prime Minister stressed that renewable energy development must precede the phase-out of coal to avoid replacing dependence on coal with greater reliance on imported liquefied natural gas (LNG). Otherwise, Malaysia could face greater exposure to fuel price volatility and external geopolitical uncertainties.

To support the transition, the Ministry of Energy Transition and Water Transformation continues to prioritise the development of large-scale solar power projects, renewable energy supply mechanisms for businesses, battery energy storage systems and smart grid modernisation.

Regarding regional cooperation, Fadillah reaffirmed Malaysia's commitment to advancing the ASEAN Power Grid initiative and expanding cross-border electricity trade to strengthen regional energy security and facilitate greater integration of renewable energy./.

VNA

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