TNB Doubles Capex to Advance Energy Transition in Malaysia
Key Ideas
  • TNB more than doubles its budgeted capital expenditure to RM42.9 billion to accelerate infrastructure development for Malaysia's energy transition.
  • Focus areas for investment include renewable energy, green hydrogen, carbon capture, and smart grid interconnections to support decarbonisation.
  • Under the National Energy Transition Roadmap, TNB is progressing on flagship projects like floating solar, centralised solar parks, and hydrogen initiatives.
  • TNB's future outlook is positive with a projected economic growth of 4.5%–5.5% in 2025 and a strong focus on sustainability and innovation.
Tenaga Nasional Bhd (TNB) in Malaysia has announced a substantial increase in its capital expenditure to RM42.9 billion to bolster infrastructure development for the country's energy transition. The allocation includes RM26.6 billion for base capital expenditure and RM16.3 billion for contingent capital expenditure. A significant portion of the contingency capex will be directed towards upgrading infrastructure to support renewable energy, the National Energy Transition Roadmap (NETR), and interconnection projects. TNB aims to accelerate decarbonisation by investing in solar projects, battery storage, corporate renewable energy supply schemes, and community-based renewables. TNB is also keen on advancing green hydrogen, carbon capture, electric mobility, and smart grid interconnections to align with the ASEAN Power Grid vision. The company has already made substantial progress in renewable energy with 3.3 GW of capacity in Peninsular Malaysia and 1.1 GW abroad. Projects like floating solar installations, centralised solar parks, and hydrogen initiatives are key focus areas under the NETR. Internationally, TNB operates solar and wind assets in the UK, Ireland, and Australia, with ongoing construction of new solar farms. Noteworthy achievements include a 45MWp solar plant in Kulim and projects in collaboration with local partners for green energy supply. TNB is actively collaborating with Petronas on green hydrogen projects, leveraging solar power for pilot systems and large-scale battery energy storage projects. Looking ahead to 2025, TNB is optimistic about economic growth and electricity demand, supported by initiatives like Regulatory Period 4 (RP4) and a promising return on investment. The company's commitment to sustainability, innovation, and reducing emissions from thermal plants positions it well for the future.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2025 AdvanceH2, LLC. All rights reserved.