Key facts
- Malaysia is considering repurposing retiring coal sites into renewable energy hubs and battery storage facilities.
- A new report proposes a national coal site repurposing framework for clean energy hubs, particularly solar and battery energy storage systems.
- Sarawak Energy has already transformed a unit at its Sejingkat coal plant into a 60MW/82MWh battery storage system.
- Malaysia aims to phase out coal entirely by 2044 and achieve a 70% share of renewables in total installed capacity by 2050.
Malaysia is exploring the conversion of its retiring coal-fired power plant sites into renewable energy hubs and battery storage facilities, according to Deputy Prime Minister Fadillah Yusof. This initiative is part of the country's broader energy transition strategy, aiming to move away from fossil fuels and enhance energy security.
The proposal, detailed in a report by the World Economic Forum (WEF) and Malaysia's energy transition and water transformation ministry (Petra), suggests repurposing existing coal plant infrastructure for solar power generation and battery energy storage systems (BESS). The report, titled "Beyond Coal: Building a Flexible, Resilient and Clean Power System for Malaysia," highlights the potential to maximize land and infrastructure utility while improving grid reliability.
Fadillah Yusof emphasized that viewing these assets as opportunities for new economic value, rather than stranded assets, is crucial. He also stressed the importance of accelerating renewable energy deployment to outpace coal retirements, thereby reducing reliance on imported liquefied natural gas (LNG) and mitigating exposure to price volatility and geopolitical risks.
Malaysia has already initiated such transformations, with Sarawak Energy successfully converting a unit at its Sejingkat coal plant into a 60MW/82MWh BESS that became operational in 2024. This project serves as a model for future repurposing efforts.
Further recommendations from the report include interim measures like fuel blending (e.g., co-firing biomass with coal) and managing gas usage through shorter 15-year power purchase agreements to avoid long-term commitments. Advancing the Asean power grid and exploring nuclear power as a long-term alternative to gas were also suggested.
Malaysia has committed to not building new coal-fired power plants and aims to completely phase out coal by 2044. The nation also targets achieving a 70% share of renewables in its total installed capacity by 2050. Currently, coal constitutes 52.5% of Malaysia's energy mix, while renewables account for 4.7%.