In 2021, the Malaysian Government set a bold target to become a carbon-neutral nation by 2050. Following the Government’s announcement, national utility Tenaga Nasional (TNB) announced its Energy Transition plan, a roadmap detailing how it would support the nation in its decarbonisation goals.  

Its aspirations follow half a decade of strategic focus on the sustainability agenda, with groundwork starting in 2016. More recently, TNB pledged to invest ~RM20 billion annually over the next three years (2022-2024) to hasten the transition into responsible energy. 

A vital part of this is the expansion of renewable energy sources, such as large-scale solar and hydropower, across the country. Malaysia’s renewable energy capacity today stands at 23% at 8,520 megawatts. By 2025, TNB aims to increase that amount to 14 gigawatts.  

Other initiatives include growing emerging green technologies such as hydrogen and Carbon Capture Utilisation & Storage (CCUS). Regional talks for an interconnected ASEAN power grid have also been in the works to address the rising demand for energy and boost regional accessibility and sustainability. 

Although it has faced challenges, TNB has reiterated its commitment and strategy are long-term. In tandem with industry stakeholders, its efforts will not only contribute towards a greener world but also deliver on the overall environment, sustainability and governance (ESG) commitments while building a more robust, more sustainable economy. Below, we examine four essential action plans recently highlighted by the utility.