Malaysia is emerging as one of Asia’s stronger grid investment performers, with Tenaga Nasional Bhd (TNB) spending ahead of the annualised pace implied by its current capital expenditure programme, according to BMI.
In its latest report on Asian power networks, BMI said grid infrastructure is increasingly becoming the key constraint on renewable energy growth as generation capacity expands faster than transmission networks can accommodate.
Malaysia stood out among emerging Asian markets, with TNB’s 2025 grid capital expenditure reaching about US$4.0 billion, exceeding the approximately US$3.4 billion annualised investment pace under the government-approved Regulatory Period 4 (RP4) capital expenditure programme.
TNB’s RP4 programme provides for RM42.82 billion of capital expenditure between 2025 and 2027, which BMI assessed as being on track.
“Malaysia is an outperformer among emerging markets,” BMI said, noting that TNB was among the regional utilities recording the sharpest increases in grid investment compared with previous years.
Grid Becoming Constraint On Renewables
BMI said electricity grids have become a binding constraint across many Asian power markets as solar and other renewable generation is commissioned faster than transmission capacity can be expanded.
The resulting bottlenecks have contributed to increased renewable-energy curtailment and weaker solar utilisation rates in several countries.
Globally, BMI cited International Energy Agency estimates showing around 1,700GW of advanced-stage renewable projects are awaiting grid connections.
The research firm said whether Asia can sustain its renewable-energy expansion over the next decade will increasingly depend on how quickly transmission and distribution infrastructure is developed.
Developed East Asian economies are generally well positioned to deliver increasingly ambitious grid programmes, while execution remains more uneven across emerging markets.
Mainland China remains the region’s largest spender, with State Grid committing CNY4 trillion between 2026 and 2030 under the 15th Five-Year Plan, about 40% more than during the previous five-year period.
China Southern Power Grid plans CNY180 billion of fixed-asset investment in 2026, while South Korea’s Korea Electric Power Corp and Taiwan’s Taipower both recorded their highest annual capital expenditure levels in 2025.
India, Malaysia Lead Emerging Markets
BMI expects India to remain a regional grid-investment outperformer following some of the strongest spending growth over the past five years.
Power Grid Corp of India plans capital expenditure of INR370 billion in FY2027 and INR450 billion in FY2028, which BMI assessed as on track.
Capital intensity has also risen sharply. Power Grid’s capex-to-revenue ratio reached 80% in 2026, compared with 24% in 2021, reflecting the scale of investment needed as India deals with grid congestion and long connection queues.
TNB, Power Grid, Adani Energy Solutions, Taipower, China Southern Power Grid and Singapore’s SP PowerAssets are all becoming more capital-intensive, according to BMI, directing a larger share of their expanding revenue bases towards network investment.
Indonesia And Thailand Risk Falling Behind
By contrast, BMI identified Indonesia and Thailand as relative regional laggards.
Indonesia’s PLN recorded average annual capital expenditure of about US$3.9 billion over the past five years, around 23% below the annualised level needed to meet its transmission and distribution investment targets.
PLN’s 2025-2034 expansion programme calls for IDR565.3 trillion of transmission investment and IDR268.4 trillion for distribution, equivalent to roughly US$5.1 billion annually.
Thailand’s Electricity Generating Authority of Thailand is assessed as being on track against its stated plans, but BMI said the overall investment quantum remains comparatively low and less ambitious than regional peers.
The research house cautioned that delays are becoming increasingly costly as prices for transformers, cables and switchgear have risen since 2021.
Because transmission projects have long development timelines, insufficient investment today could constrain the ability of power systems to absorb additional renewable generation later this decade.
BMI warned that persistent grid bottlenecks could also prolong dependence on coal and other thermal generation, as insufficient network capacity limits the amount of renewable power that can be integrated into national electricity systems.
