PETALING JAYA, Sept 8 — Malaysia expects about nine gigawatts (GW) of gas-fired power capacity to be deployed by 2032 as the country manages growing electricity demand while progressively phasing out coal-fired generation.
Minister of Economy Akmal Nasrullah Mohd Nasir said the capacity would form part of the country’s efforts to manage electricity demand, with the last coal-fired power plant expected to be retired in 2044.
Akmal Nasrullah said energy demand was showing an upward trend, driven by factors including population growth and higher consumption from energy-intensive sectors such as data centres.
“In terms of the projection for energy demand, definitely we see a pattern of increase. One is population growth.
“But number two, there is also an increase in energy consumption by high-usage sectors such as data centres,” he told reporters after the Energy Regulatory Insights 2026 here today.
He said weather and climate conditions could also change energy demand patterns, particularly as hotter conditions increase the need for cooling systems and air conditioning.
Against this backdrop, Akmal Nasrullah said managing energy demand would become as crucial as managing energy supply over the next five to 10 years.
“I think for the next five to 10 years, Malaysia must really remain disciplined enough to ensure our system is continuously upgraded, not just in terms of the power produced, but also the grid and infrastructure, so that our system remains affordable, safe and sustainable,” he added.
He said energy planning should not only focus on the megawatts that need to be deployed in the system, but also on energy efficiency and conservation.
Akmal Nasrullah said the planning would need to be managed by the Ministry of Energy Transition and Water Transformation and the Energy Commission to ensure the country could manage demand while remaining committed to sustainability efforts and reducing the energy sector’s carbon footprint.
Earlier in his keynote address, Akmal Nasrullah outlined three priorities for the next phase of energy reform, starting with the need for a competitive and progressive energy market with clear and predictable rules and transparent access arrangements.
Secondly, he said expanding generation capacity must be supported by a modern grid that is intelligent, visible, secure and flexible, with grid modernisation under the 13th Malaysia Plan regarded as essential economic infrastructure to enable investments to connect faster, improve system efficiency and support reliable economic growth.
Thirdly, Akmal Nasrullah said energy efficiency must be treated as an energy resource in its own right, as it could reduce operating costs, ease pressure on the system and strengthen competitiveness.
He said the first National Energy Efficiency Action Plan (NEEAP) exceeded its original target, delivering cumulative electricity savings of 60,886 gigawatt-hours, equivalent to RM16.1 billion in savings, from 2016 to 2025.
Under NEEAP 2.0, Malaysia is targeting an 11.6 per cent reduction in energy demand against the business-as-usual scenario by 2035, which is expected to help lower energy costs, ease pressure on the system and support more productive and competitive economic activity.
