Landmark Agreement Targets 12.5 GW of Green Energy by 2040
Saudi Arabia’s ACWA Power has signed a transformative US$10 billion agreement with key Malaysian government agencies and strategic partners to spearhead the development of clean energy infrastructure across Malaysia—marking one of the country’s most ambitious sustainability initiatives to date.
At the core of this partnership is a Memorandum of Understanding (MoU) between ACWA Power and the Malaysian Investment Development Authority (MIDA), with a bold target to build up to 12.5 gigawatts (GW) of renewable energy capacity by 2040. The initiative, valued at approximately RM47 billion, stands as a cornerstone of Malaysia’s green industrial ambitions and reflects a shared commitment to energy transition on a global scale.
In parallel, ACWA Power has entered into separate strategic agreements with TNB Power Generation Sdn Bhd, UEM Lestra Berhad, and Terengganu Incorporated Sdn Bhd. These alliances will drive joint ventures in renewables, green hydrogen, and sustainable water solutions, all aligned with Malaysia’s National Energy Transition Roadmap (NETR) and Saudi Arabia’s Vision 2030.
“This US$10 billion collaboration is a major endorsement of our New Industrial Master Plan 2030 and our National Energy Transition Roadmap,” said Minister of Investment, Trade and Industry, Tengku Zafrul Aziz. “It strengthens Malaysia’s energy security, supports industrial transformation, and advances our national commitment to achieve Net Zero emissions by 2050.”
Marco Arcelli, CEO of ACWA Power, highlighted the partnership as a major milestone in the company’s expansion into Southeast Asia. “We are uniting our global expertise in renewables, desalination, and green hydrogen with Malaysia’s local capabilities. This partnership will foster high-impact technology transfer, create skilled jobs, and catalyze long-term economic and environmental progress,” Arcelli stated.
MIDA will coordinate the implementation of ACWA Power’s investments, ensuring alignment with the New Investment Policy and the national green agenda. Execution will be carried out in close cooperation with the Ministry of Energy Transition and Water Transformation (PETRA) and the Energy Commission (EC).
With a global asset portfolio exceeding US$107.5 billion across 14 countries, ACWA Power continues to position itself as a driving force in the global shift toward sustainable energy solutions—now with Malaysia as a vital strategic partner in that vision.
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