Saudi Arabian energy company ACWA Power, a global leader in renewable energy and water desalination, has announced ambitious plans to invest up to $10 billion (approximately €9.2 billion) in Malaysia’s green energy transition. The initiative is part of the company’s broader strategy to expand its presence in Southeast Asia while supporting Malaysia’s national goals for clean energy development.
Project Scope and Objectives
The agreement signed between ACWA Power and Malaysia’s investment promotion agency outlines the development of up to 12.5 gigawatts of renewable energy capacity by 2040. The projects will span solar, wind, and other sustainable technologies, including large-scale battery storage solutions.
The rollout will occur in phases, with a focus on resilience, localization, and knowledge transfer. This aligns with Malaysia’s broader strategy to shift away from fossil fuels and boost the share of renewables in its national energy mix to 70% by the year 2050.
Strategic Partnerships with Local Firms
To bring this vision to life, ACWA Power has signed memoranda of understanding with several prominent Malaysian companies. These include the state-owned utility Tenaga Nasional Berhad (TNB), Terengganu Inc., and UEM Lestra Berhad — a subsidiary of one of Malaysia’s largest infrastructure groups.
These partnerships aim to jointly develop projects such as floating solar photovoltaic systems, combined-cycle gas turbine plants with hydrogen blending potential, and advanced desalination facilities. The collaborative model emphasizes not only project delivery but also co-innovation and talent development.
Supporting Malaysia’s Energy Transition Strategy
The ACWA Power initiative is fully aligned with Malaysia’s National Energy Transition Roadmap, which seeks to reduce carbon emissions, expand green technology adoption, and position Malaysia as a regional clean energy hub.
Malaysian officials have welcomed the partnership, viewing it as a pivotal step toward sustainable economic transformation. In addition to energy generation, the projects are expected to stimulate domestic industry, boost exports of clean tech solutions, and raise Malaysia’s profile in the global energy arena.
Economic Impact and Job Creation
The multi-billion-euro investment is expected to have a transformative impact on the Malaysian economy. Thousands of new jobs will be created across sectors such as engineering, construction, logistics, and maintenance.
Additionally, the initiative will support workforce upskilling, provide training in cutting-edge renewable energy technologies, and promote the development of local supply chains. This economic ripple effect will extend to component manufacturing, digital energy platforms, and green tech start-ups.
Technology and Innovation
ACWA Power is known for its advanced technological capabilities in solar thermal, photovoltaic, and wind power generation, as well as in water treatment. The company integrates AI-driven energy management systems, blockchain-enabled energy tracking, and low-emission infrastructure into its projects.
In Malaysia, these innovations will be adapted to the local context through collaboration with research institutions and universities. Joint R&D initiatives are expected to focus on grid modernization, hybrid energy solutions, and hydrogen production.
Global Presence and Proven Track Record
With operations in 14 countries across the Middle East, Africa, Central Asia, and East Asia, ACWA Power is a major international player in the clean energy industry. Its global portfolio exceeds $100 billion in project value and includes over 78 gigawatts of power generation and nearly 10 million cubic meters of desalinated water per day.
The company’s business model is based on long-term partnerships with public and private stakeholders, delivering not only infrastructure but also capacity-building, local content development, and regulatory cooperation.
Industry Reactions
Industry experts have praised ACWA Power’s entry into Malaysia, calling it a game-changer for the Southeast Asian renewable energy market. The region holds enormous potential but faces challenges such as regulatory complexity, limited financing, and gaps in technical expertise.
By entering the Malaysian market, ACWA Power is expected to catalyze broader investment flows, attract other international players, and accelerate policy reforms. The move also positions Malaysia to become a strategic energy partner within ASEAN and beyond.
A Model for Sustainable Development
Beyond the numbers, ACWA Power’s initiative demonstrates how international collaboration can drive meaningful progress in climate action. The Malaysian government has emphasized that these investments will not only contribute to decarbonization but also promote water security, infrastructure resilience, and energy affordability.
Sustainability reporting, ESG compliance, and community engagement will be integral parts of the project lifecycle. By setting a high standard, ACWA Power aims to influence sustainable practices across the region’s energy industry.
Conclusion
ACWA Power’s €9.2 billion investment in Malaysia’s renewable energy sector represents a major step forward in the global shift toward clean energy. This is not merely a commercial venture — it’s a comprehensive, strategic collaboration that supports economic development, technology transfer, and environmental sustainability.
As Malaysia advances toward its 2050 energy transition goals, partnerships like this will play a critical role. For ACWA Power, this marks a milestone in its journey to become a leading force in Southeast Asia’s green transformation.
