June 9 – Saudi Arabia’s ACWA Power has committed to investing up to $10 billion in Malaysia’s renewable energy and water infrastructure, marking a pivotal step in the country’s green transition. This significant announcement was made during the ASEAN-GCC Summit in Kuala Lumpur on May 29, 2025. The investment underscores the growing importance of renewable energy in Malaysia’s development agenda and highlights the increasing collaboration between Saudi Arabia and Malaysia in promoting sustainable growth.
Strategic Partnerships and Memorandum of Understanding (MoU)
As part of the deal, ACWA Power has signed a Memorandum of Understanding (MoU) with the Malaysian Investment Development Authority (MIDA). This agreement aims to explore the development of up to 12.5 gigawatts (GW) of renewable energy capacity by 2040. This aligns with Malaysia’s National Energy Transition Roadmap (NETR), which sets a target to achieve 70% renewable energy in the country’s power mix by 2050. With the support of ACWA Power’s expertise and investment, Malaysia is well-positioned to meet these ambitious goals and strengthen its renewable energy sector.
Beyond the MoU with MIDA, ACWA Power has formed strategic partnerships with several prominent Malaysian organizations, including Tenaga Nasional Berhad (TNB), Terengganu Inc., and UEM Lestra. These collaborations will focus on joint feasibility studies and project development in areas such as floating solar photovoltaics, combined-cycle gas turbines, and large-scale water desalination facilities. This wide-ranging collaboration ensures a comprehensive approach to Malaysia’s energy and water needs, integrating both renewable energy and water infrastructure solutions.
Focus Areas: Renewable Energy, Green Hydrogen, and Water Solutions
ACWA Power’s investment will support various initiatives across key sectors:
- Floating Solar Photovoltaic (FPV) Systems: By utilizing Malaysia’s water bodies, these systems will generate solar energy without occupying valuable land, increasing the country’s clean energy capacity.
- Combined-Cycle Gas Turbine (CCGT) Plants: These plants combine natural gas and steam turbines, improving efficiency and reducing emissions in power generation.
- Large-Scale Water Desalination: These facilities will convert seawater into potable water, addressing water scarcity and ensuring that Malaysia’s population and industries have access to clean water.
- Green Hydrogen Projects: ACWA Power plans to explore the production of green hydrogen, produced using renewable energy. This clean fuel has the potential to support multiple sectors, including transport and industry.
Economic and Environmental Impact
The partnership between ACWA Power and Malaysian organizations is expected to create numerous job opportunities, stimulate economic growth, and contribute to the country’s sustainable development goals. This collaboration will help Malaysia accelerate its transition to a low-carbon economy, improve energy security, and enhance environmental sustainability.
Alignment with Saudi Vision 2030
The planned investment is also aligned with Saudi Arabia’s Vision 2030, which seeks to diversify the Kingdom’s economy and make it a leader in clean energy. By investing in Malaysia’s renewable energy sector, ACWA Power is not only supporting Malaysia’s green transition but also reinforcing its commitment to global climate action.
This $10 billion investment highlights the deepening ties between Saudi Arabia and Malaysia in the renewable energy sector, paving the way for a more sustainable and resilient future for both nations.
Sources:
- ESG Times: “Saudi’s ACWA Power to Invest Up to $10B in Malaysia Renewable Energy Push.”
