As countries accelerate their shift away from coal, a new question is emerging: what becomes of the infrastructure that once powered industrial growth? Instead of retiring them altogether, utilities are recognising the value of repurposing coal infrastructure with creative strategies to deploy renewables, low carbon fuels, battery storage and more.

Malaysia is entering a similar phase of transition, as the country accelerates efforts to reduce its reliance on coal while expanding renewable energy (RE) capacity. Under the National Energy Transition Roadmap (NETR), Malaysia targets to achieve 70% RE in its power mix by 2050, while also committing to phasing out coal-fired power plants.

To support the nation’s long-term decarbonisation ambitions, Tenaga Nasional Berhad (TNB) is exploring how existing coal assets can be repurposed into clean energy hubs. This shift is not only about replacing one fuel source with another, but about modernising the grid to become more flexible and resilient, while protecting local communities.

From coal dependence to a more flexible energy system

Coal has historically played a major role in Malaysia’s electricity system, providing reliable baseload power to support industrial growth and rising energy demand. Indeed, the nation’s reliance on coal is significant where its 12.3 gigawatts (GW) coal fleet currently accounts for 42% of total electricity demand.

However, coal-fired electricity generation is also one of the country’s largest sources of power sector emissions, making it difficult to reconcile with net-zero ambitions. The federal government has therefore committed to phasing out coal generation over time, with plans to fully retire coal-powered power plants by around 2044.

nearly half of the coal fleet is set to go offline by 2035 in line with the government’s interim target

In fact, nearly half of the coal fleet is set to go offline by 2035 in line with the government’s interim target. As a result, successfully scaling cleaner sources of supply that includes solar, hydropower, natural gas, and more cross-border interconnections will be critical to enabling a well-coordinated coal phase-out post 2030.

To this end, grid flexibility will become increasingly important in the next phase of the energy transition, particularly as higher shares of RE sources are integrated into the system. This is driving greater focus on technologies such as battery energy storage systems (BESS), smart grid infrastructure, and green hydrogen, which can help support cleaner power generation.

The hidden value of coal infrastructure as clean energy hubs

Coal plants and infrastructure are often located on strategically valuable industrial land and already possess many of the assets needed for future energy systems. Existing grid interconnections, transmission capacity, water access, and transport links make it easier for these sites to host utility-scale clean energy projects.

Building new renewable energy projects like solar and wind farms or grid-scale battery storage systems also typically require lengthy approval processes, zoning permits, and costly grid upgrades. Repurposing former coal sites can help avoid these barriers, thereby accelerating renewable rollout while preserving grid reliability.

Moreover, retaining these sites can also preserve jobs, sustain local economic activity and support a more just transition for local communities. Coal workers have many transferable skills like electrical maintenance or heavy machinery operation that can be shifted into areas like solar installation or grid operations with retraining initiatives.

Globally, energy companies are already turning coal-era infrastructure into multi-technology hubs that combine solar, wind, batteries, and other low-carbon solutions. The Ruhr region in Germany for instance transitioned from coal mining to clean tech research parks through coordinated industrial policy and public investment.

The examples emerging across developed markets like Europe and North America demonstrate that coal’s decline does not have to mean regional decline. For Malaysia, adopting a similar approach can maximise the value of existing infrastructure while avoiding stranded assets and protecting communities as the nation transitions away from coal.

Project REACH and the evolution of Jimah East Power Plant

In Malaysia, this shift is beginning to take shape through initiatives such as TNB’s Project Renewable Energy Applications for Clean Hydrogen (REACH), focusing on demonstrating how renewable energy, battery storage, and green hydrogen production can be combined with an existing power plant site. A key pilot location for this initiative is the Tuanku Muhriz Power Station, better known as Jimah East Power Plant, one of the country’s leading ultra-supercritical coal-fired facilities with a generating capacity of 2,000 megawatts (MW).

Located in Negeri Sembilan and in operation since 2014, the plant has long served as a key source of reliable, efficient energy for Peninsular Malaysia’s Grid. Today, it also represents a promising testbed for transitioning traditional power generation assets towards cleaner technologies, including the adoption of green hydrogen solutions through Project REACH.

The project is being developed in phases, beginning with the installation of a 500-kilowatt peak (kWp) rooftop solar PV system and a 1-megawatt-hour (MWh) battery energy storage system. These components are seamlessly integrated into the existing Jimah East Power Plant grounds, utilising practical spaces like parking bays and the plant’s sports complex.

With this groundwork in place, Phase 2 will introduce a green hydrogen production system via solar-powered electrolysis, alongside thorough testing and data collection to ensure safe, efficient and scalable production. Finally, Phase 3 brings everything together, integrating solar PV, battery storage, and hydrogen systems into a single cohesive setup.

By integrating these technologies within an operational thermal power station, TNB is creating a model for how existing assets can be modernised rather than simply retired. Over time, such projects could help build local expertise, strengthen supply chains and position Malaysia to participate in the wider regional green hydrogen economy.

The opportunity for cleaner reindustrialisation

Coal repurposing is well positioned to continue, thanks to advancements in new energy solutions, ageing coal fleets, and the growing importance of energy security. Solar and battery storage will come down in cost, while sources like green hydrogen are having a renaissance, prompting higher generation for onsite clean repowering.

Indeed, over the next fifteen years, over 300 GW of coal could be retired across the world, with key opportunities expanding across Southeast Asia. Every retirement promises a clean opportunity, preserving the value of existing infrastructure while creating a pathway towards a lower-carbon electricity system.

The evolution of plants such as Jimah East could offer an important blueprint for the future of clean energy infrastructure in Malaysia. While coal continues to play a role in ensuring energy security, these assets can be progressively adapted to support cleaner energy integration. In doing so, they would show that the country’s traditional energy assets can continue serving the national grid, not as symbols of the past, but as foundations for a more sustainable and resilient future.