Malaysia Accelerates Transition to Renewable Energy by Repurposing Coal Plants

Kuala lumpur: Malaysia plans to repurpose sites of retiring coal-fired power plants into renewable energy (RE) hubs and battery energy storage facilities under a proposed National Coal Site Repurposing Framework, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

According to BERNAMA News Agency, Fadillah highlighted that the country's existing coal fleet represents significant national infrastructure, including transmission connections, industrial facilities, and strategically located land. He noted that instead of allowing these assets to become obsolete, they should be viewed as opportunities to create new economic value. Selected sites have strong potential to be transformed into renewable energy hubs, battery storage facilities, and other clean energy developments, which will continue to contribute to local economies while supporting national transition objectives.

Fadillah delivered his remarks during the closing ceremony of the World Economic Forum's 'Malaysia's Energy Future: Power Sector Decarbonisation Deep Dive'. He emphasized that every retiring power station presents an opportunity to create new industries, attract investments, and prepare the workforce for the economy of the future. The proposed framework outlined in the World Economic Forum's insight paper, 'Beyond Coal: Building a Flexible, Resilient and Clean Power System for Malaysia', aims to provide a foundation for continued engagement among the government, regulators, utilities, investors, and local communities.

Fadillah reiterated Malaysia's commitment to its target of not building any new coal-fired power plants, transitioning away from coal-fired electricity generation by 2044, and achieving a 70 percent RE installed capacity by 2050. He stressed the importance of advancing RE deployment ahead of coal retirement to avoid substituting coal dependence with a greater reliance on imported liquefied natural gas (LNG), which could expose Malaysia to fuel price volatility and external geopolitical uncertainties.

To support this transition, the Ministry of Energy Transition and Water Transformation prioritizes large-scale solar deployment, the Corporate Renewable Energy Supply Scheme, battery energy storage systems, and smart grid modernization. Fadillah also reaffirmed Malaysia's commitment to advancing the ASEAN Power Grid and expanding cross-border electricity trade to strengthen regional energy security and facilitate greater RE integration.

Furthermore, Fadillah mentioned that Malaysia would continue exploring long-term low-carbon energy options, including advanced nuclear technologies and small modular reactors, while ensuring safety, robust governance, regulatory preparedness, and public confidence remain paramount.