ACWA Power to invest RM42.5 billion in Malaysia green energy
KUALA LUMPUR: ACWA Power, the world's largest private water desalination company, a leader in energy transition and first mover into green hydrogen, announced comprehensive partnerships with Malaysian government agencies and key entities at the sidelines of the ASEAN-GCC Summit. The centrepiece agreement, a Memorandum of Understanding (MOU) with Malaysian Investment Development Authority (MIDA), will facilitate strategic investment projects in clean energy infrastructure across Malaysia, targeting 12.5 GW of capacity by 2040 with an estimated investment value of RM42.5 billion (USD10 billion).
The collaboration includes additional strategic agreements with TNB Power Generation Sdn. Bhd., UEM Lestra Berhad, and Terengganu Incorporated Sdn. Bhd., creating a powerful alliance that combines Malaysia's innovative ecosystem with Saudi Arabia's energy transition expertise. The partnership focuses on advancing renewable energy, green hydrogen, and advanced water solutions, aligning with both Malaysia's National Energy Transition Roadmap (NETR) and Saudi Vision 2030's climate leadership objectives.
The MOU exchange was witnessed by YAB Datuk Seri Haji Fadillah bin Haji Yusof Malaysia's Deputy Prime Minister II and the Minister of Energy Transition and Water Transformation; YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Malaysia's Minister of Investment, Trade & Industry (MITI), Mr. Abdullah Bin Zarah, Saudi Arabia's Deputy Minister for Economic and Development Affairs; and Ms Sara Al-Sayed, Saudi Arabia's Deputy Minister of International Relations at the Saudi Ministry of Investment.
Minister of MITI, Tengku Zafrul said 'We welcome this USD10-billion collaboration between MIDA and ACWA Power Company which supports the objectives of our New Industrial Master Plan 2030 and National Energy Transition Roadmap, as Malaysia charts its way to achieving energy security and energy transition, especially for its industries, as well as the country's Net Zero goal by 2050.'
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, shared his vision for the project, 'This partnership marks a defining moment in Malaysia's green energy journey, positioning us as Southeast Asia's premier destination for sustainable investments. With ACWA Power's global expertise and our National Energy Transition Roadmap as our compass, we're not just attracting investments – we're architecting Malaysia's future as a clean energy powerhouse.'
'Through this collaboration, we're demonstrating how international partnerships, such as the one with ACWA Power, can fast-track our transition to a low-carbon economy while creating high-skilled jobs and driving technological innovation in Malaysia's renewable energy sector,' he added.
Marco Arcelli, Chief Executive Officer of ACWA Power, said, 'This strategic agreement with MIDA, represent a significant milestone in ACWA Power's expansion in Southeast Asia and reflects our commitment in supporting Malaysia and the broader ASEAN region's energy transition towards a sustainable and low-carbon future. By combining our global expertise in renewables, 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 and social well-being of the local community.'
Malaysia's supportive green technology incentives, namely the Green Investment Tax Allowance (GITA) are structured through a tiered and outcome-based approach, to cater to the needs of green industries such as solar and green hydrogen.
MIDA will facilitate ACWA Power's proposed investments to ensure alignment with the New Investment Policy and energy transition goals, working closely with the Ministry of Energy Transition and Water Transformation (PETRA) and the Energy Commission (EC).
In 2024, Malaysia marked a significant milestone with RM20.8 billion in approved green investments, spanning seven (7) levers across the manufacturing and services sectors. These investments, comprising 943 projects, are projected to create 8,413 new jobs, with green mobility, circular economy and renewable energy among the leading sectors.
ACWA Power brings significant expertise to these projects, leveraging its global projects value portfolio of USD107.5 billion across 14 countries. This expansion marks a significant milestone in the company's commitment to driving energy transition through strategic partnerships and innovative technology.
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