From EVs to solar, it goes without saying that Malaysia is slowly moving away from its dependency on non-renewable energy. And to help facilitate this change, The Edge Malaysia reports that the nation is considering nuclear power as a possibility and may see its first nuclear power plant within six years.
Tenaga Nasional told TA Securities that, in order to usher in Malaysia’s energy transition plan, the company is establishing itself to be the projects’ developer-owner-operator. The research firm stated after a meeting with Tenaga’s Nuclear Taskforce that “potential sites for a nuclear power plant have been identified,” though the precise locations were not disclosed.
As per the report, these power plants could generate more than three gigawatts of energy by 2034. Additionally, Tenaga Nasional has committed to over 40 data centre projects, which collectively have the potential to use over six gigawatts of energy, highlighting the need to increase Malaysia’s capacity to generate electricity.
Currently, the country heavily depends on non-renewables (fossil fuel, coal, crude oil, and natural gas), accounting for nearly 90% of its energy mix, something the government is looking to address by 2035. Furthermore, according to the report, the government has pledged to shut down coal-fired power plants by 2044.
TA Securities said that, though it is in its early phases, the transition from coal to nuclear energy opens up opportunities for Tenaga to replenish its capacity. The stockbroking company further noted that the “huge capital outlay for nuclear power plants also creates a high barrier to entry”. “Overall, we view nuclear energy development as a potential medium- to long-term catalyst for Tenaga alongside decarbonisation of the group’s generation portfolio,” the research house said.
Though Tenaga Nasional is well-positioned to handle the nuclear power projects, it is worth mentioning that a decision on the energy source will only be made after 2030. Deputy Prime Minister and Minister of Energy Transition and Water Transformation Datuk Fadillah Yusof stated that there are many factors before nuclear power can be brought to the country, such as regulations and even public acceptance.
(Source: The Edge Malaysia)
