KUALA LUMPUR, June 2025 — Malaysia is scaling up its green economy vision with a major RM43 billion investment plan to modernize its national power grid and drive forward its transition to a low-carbon, renewable-powered economy.
Unveiled at the Energy Asia 2025 Conference in Kuala Lumpur, the initiative was presented by Prime Minister Anwar Ibrahim as a cornerstone of Malaysia’s strategy to lead ASEAN’s clean energy future.
🔋 Key Elements of the Green Grid Plan
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Smart Grid Modernization:
Includes AI-driven energy distribution systems, digital substations, and grid storage solutions.
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Battery Infrastructure:
National rollout of large-scale battery storage to improve grid reliability and enable higher renewable integration.
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Renewable Energy Mix:
Boost solar, hydro, and emerging wind projects to raise renewables to 40% of the energy mix by 2035.
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Private Sector Involvement:
RM18 billion of the total is earmarked for public-private joint ventures with green tech firms and IPPs.
🌱 PETRONAS Leads Carbon Management Push
Malaysia's energy transformation is being supported by its national oil & gas champion, PETRONAS, which officially launched its Energy Transition Academy and rolled out the country’s first Carbon Capture, Utilisation & Storage (CCUS) Act in Q2 2025.
Key highlights:
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Legal framework for carbon storage projects
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Development of regional CCUS hubs in Sarawak and Johor
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Collaboration with ENI and ExxonMobil on pilot projects
PETRONAS President/CEO Tengku Taufik commented:
“Malaysia’s energy transition is not about abandoning hydrocarbons—it’s about evolving the energy mix with sustainability, resilience, and regional leadership.”
🌍 ASEAN Cooperation & Net-Zero Path
Malaysia has committed to:
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Achieving net-zero emissions by 2050
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Co-leading the development of the ASEAN Carbon Capture Roadmap
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Positioning itself as a key exporter of green hydrogen and clean fuels by 2030
📈 Economic & Business Impact
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An estimated 80,000+ new green jobs by 2030
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New markets for solar panel manufacturing, EV battery supply chains, and carbon trading
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Green energy zones are being planned in Sabah, Perak, and Melaka
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