ACWA Power has inked a memorandum of understanding (MoU) and strategic partnership agreements (SPA) with key Malaysian entities. The company has inked an MoU with the Malaysian Investment Development Authority (MIDA) for the development of up to 12.5 GW of power generation capacity by 2040. This has an initial investment value of up to $10 billion.
The SPAs and heads of terms (HoTs) have been inked for joint development agreements with Tenaga Nasional Berhad (TNB), Terengganu Inc., and UEM Lestra. This has been done to conduct feasibility studies and jointly develop various energy projects relating to floating solar photovoltaic, combined cycle-gas turbine, and large-scale water desalination.
Earlier in February 2025, ACWA Power inked a 25-year power purchase agreement with the Egyptian Electricity Transmission Company for a 2 GW wind project in Egypt. The investment in the project is approximately $2.3 billion. The project is expected to reach financial close in 2026.
REGlobal’s Views: Malaysia has set a goal of increasing its installed renewable energy capacity to 70% by 2050, and the country has been taking many policy interventions to get large global investments into the country. The company’s expanding renewable energy market has attracted various companies like EDP, ACWA Power and ENGIE.
