Saudi Arabia’s ACWA Power announced on May 29 that it has signed a preliminary agreement to develop up to 12.5 gigawatts of renewable energy generating capacity in Malaysia. The initial investment for this project is set to reach up to $10 billion.

The renewable energy utility confirmed in a statement that it has entered into a memorandum of understanding with the Malaysian Investment Development Authority. This agreement aims to explore the potential development of the renewable energy capacity by 2040.

Malaysia has set an ambitious goal for renewable energy, seeking to ensure that it constitutes 70% of its power mix by 2050. In addition to the MoU, ACWA Power has also secured strategic partnership agreements with several Malaysian companies to explore potential energy projects, including large-scale water desalination initiatives.

ACWA Power’s CEO Marco Arcelli emphasized that these strategic agreements mark a significant milestone in the company’s expansion in Southeast Asia and demonstrate their commitment to supporting Malaysia and the wider ASEAN region’s energy transition.

The developments reflect a growing focus on sustainable energy solutions in the region, aligning with global trends towards renewable energy adoption.