The government plans to repurpose retired coal-fired power plant sites into renewable energy (RE) hubs and battery energy storage facilities under a proposed National Coal Site Repurposing Framework, turning ageing energy assets into new investment opportunities.
Deputy Prime Minister and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof said existing coal plants already have key infrastructure, including grid connections, industrial facilities and strategically located land, making them ideal for clean energy redevelopment rather than being left idle.
The framework, outlined in the World Economic Forum policy paper Beyond Coal: Building a Flexible, Resilient and Clean Power System for Malaysia, will guide collaboration between the government, regulators, utilities, investors and local communities.
Fadillah said each retired coal plant presents an opportunity to attract new investment, develop clean energy industries and create jobs while supporting local economies.
Malaysia remains committed to ending new coal power development, phasing out coal-fired electricity generation by 2044 and raising installed renewable energy capacity to 70% by 2050.
He warned that renewable energy deployment must accelerate ahead of coal plant closures to avoid replacing coal dependence with greater reliance on imported liquefied natural gas (LNG), which would expose the country to fuel price volatility and geopolitical risks.
To support the transition, the ministry will continue prioritising large-scale solar projects, the Corporate Renewable Energy Supply Scheme (CRESS), battery energy storage systems and smart grid upgrades. Malaysia will also push ahead with the ASEAN Power Grid, expand cross-border electricity trading and explore long-term low-carbon technologies such as advanced nuclear and small modular reactors.
