Acwa Power To Invest $10B In Malaysia’s Green Future

Saudi Arabia-based ACWA Power has unveiled a bold expansion into Southeast Asia by committing up to USD 10 billion in Malaysia’s clean energy and water infrastructure. The strategic move, which was formalized during the ASEAN-GCC Summit held in Kuala Lumpur, represents a significant step toward supporting Malaysia’s ambitious renewable energy goals and accelerating the energy transition in the region.

The centerpiece of this initiative is a Memorandum of Understanding (MoU) signed with the Malaysian Investment Development Authority (MIDA), outlining a plan to jointly explore and develop up to 12.5 gigawatts (GW) of power generation capacity in Malaysia by 2040. This substantial capacity development directly supports the country’s National Energy Transition Roadmap (NETR), which aims to achieve 70% renewable energy generation by 2050.

The new agreements position ACWA Power as a long-term player in Malaysia’s energy landscape, further embedding the company’s global expertise in renewable energy and water solutions into Southeast Asia. ACWA Power currently operates in 14 countries and holds a project portfolio valued at USD 107.5 billion. This latest development enhances the company’s presence in Asia while contributing to both Malaysia’s and Saudi Arabia’s sustainability ambitions.

“By combining our global expertise in renewables, water desalination, and green hydrogen with the local knowledge of our Malaysian partners, we are not only accelerating the deployment of clean energy solutions but also fostering technology transfer, job creation, and long-term economic growth,” said Marco Arcelli, Chief Executive Officer of ACWA Power.

Further strengthening its commitment to Malaysia’s transition, ACWA Power also signed a series of Strategic Partnership Agreements (SPA) and Heads of Terms (HoTs) with key national stakeholders. These include Tenaga Nasional Berhad (TNB), Malaysia’s largest electricity utility; Terengganu Inc., the investment arm of the state of Terengganu; and UEM Lestra, a green energy-focused subsidiary of UEM Group.

Under these partnerships, ACWA Power and its collaborators will conduct feasibility studies and jointly develop a wide range of sustainable projects. Among the most notable are floating solar photovoltaic (FPV) installations, which utilize bodies of water to deploy solar panels, thereby conserving land use. Also in the pipeline are combined cycle gas turbine (CCGT) power plants, which are seen as an efficient transitional energy source, and large-scale desalination facilities to address Malaysia’s growing water demands.

The partnership is emblematic of the growing cooperation between Gulf and ASEAN nations, as both regions seek to diversify their economies and address climate challenges. These deals also align with the broader goals of Saudi Vision 2030 — a transformative initiative led by the Kingdom of Saudi Arabia to reduce its dependency on oil, diversify its economy, and play a leading role in global climate action. For Malaysia, the collaboration signals a strong influx of foreign investment that will bolster clean energy development while creating local employment opportunities and stimulating industrial growth.

“These partnerships are a testament to our shared vision for a sustainable future,” added Arcelli. “Malaysia is a key growth market for us in Southeast Asia, and we are proud to support its energy transition while advancing our global sustainability objectives.”

The USD 10 billion initial investment signals ACWA Power’s confidence in Malaysia as a strategic market for clean energy development. This investment is expected to support a range of infrastructure projects over the coming decades, bringing advanced energy technologies and innovations to the country.

Malaysia’s energy transition strategy has become increasingly important as the government prioritizes sustainable development, energy security, and climate resilience. The collaboration with ACWA Power reflects a growing emphasis on public-private partnerships to fast-track the deployment of low-carbon technologies.

With its strong track record in renewable power generation, water desalination, and energy storage solutions, ACWA Power is uniquely positioned to contribute to Malaysia’s energy goals. The company’s global experience, coupled with local partnerships, offers a powerful model for delivering large-scale energy projects that align with environmental, social, and economic priorities.

As Southeast Asia faces mounting pressure to decarbonize and adopt cleaner technologies, ACWA Power’s entrance into the region underscores the increasing importance of international collaboration in achieving net-zero ambitions. This landmark investment not only reinforces Malaysia’s renewable energy aspirations but also exemplifies how global partnerships can drive meaningful progress toward a sustainable energy future.