Malaysia plans to transform the sites of retiring coal-fired power plants into renewable energy hubs and battery energy storage facilities under a proposed National Coal Site Repurposing Framework, according to Deputy Prime Minister Fadillah Yusof  on July 2.

The country's existing coal fleet represents significant national infrastructure, including transmission connections, industrial facilities and strategically located land, Fadillah, who is also Energy Transition and Water Transformation Minister, said the closing of a World Economic Forum (WEF) event in Kuala Lumpur.

"Rather than allowing these assets to become stranded, we should view them as opportunities to create new economic value," he said. "Selected sites possess strong potential to be transformed into renewable energy hubs, battery energy storage facilities and other clean energy developments."

The proposed framework, outlined in a WEF insight paper, would provide a foundation for engagement among government, regulators, utilities, investors and local communities. Fadillah said every retiring power station presented an opportunity to create new industries, attract investments and prepare the workforce for the economy of the future.

Malaysia remains committed to not building new coal-fired plants, phasing out coal-fired generation by 2044 and achieving 70% renewable installed capacity by 2050. However, Fadillah stressed that renewable deployment must outpace coal retirement to ensure that the coal phase-out does not lead to increased imports of LNG and expose Malaysia to price volatility and external geopolitical uncertainties.

To support the transition, the ministry is prioritizing large-scale solar deployment, the Corporate Renewable Energy Supply Scheme, battery energy storage systems (BESS) and smart grid modernization.

On regional cooperation, Fadillah reaffirmed Malaysia's commitment to advancing the ASEAN Power Grid and expanding cross-border electricity trade, and said the country would continue exploring advanced nuclear technologies including small modular reactors while ensuring safety and regulatory preparedness.

Malaysia has already begun repurposing coal sites. Malaysian utility Sarawak Energy transformed a unit at its Sejingkat coal plant into a 60MW/82MWh BESS that started operations in 2024, providing a replicable model for future transformations.

Coal accounted for 52.5% of Malaysia's energy mix in June, while renewables accounted for 4.7%, showed data from electricity planning authority Single Buyer.