The ASEAN offshore wind development is a big leap in the right direction for regional energy cooperation. It is on track to finish its first phase by 2034. Malaysian Minister of Works, Fadillah Yusof, provided insights on the project during a recent session of the Dewan Rakyat, emphasizing that 700 megawatts (MW) of the project’s total capacity will be dedicated to Malaysia’s domestic energy needs. The rest, 1,300 MW, is planned to be exported to Singapore, which would be a historic milestone for ASEAN’s energy cooperation.
Additionally, the project is very much in line with the ASEAN Plan of Action for Energy Cooperation (APAEC). This shows a powerful ambition to expand the region’s energy security. Increased energy efficiency and sustainability infrastructure improvements are expected to be completed by around 2030.
Infrastructure Enhancements and Grid Upgrades
To accommodate the influx of clean energy, Malaysia’s government intends to modernize its archaic national grid. This parallel upgrading will feature large-scale upgrade along a new corridor from Kelantan, across Terengganu, Pahang, Negeri Sembilan and Johor. These upgrades are key to supporting the new energy capacity that will come from this offshore wind project.
Fadillah highlighted that the national grid’s upgrade is essential to manage the additional power generated by the offshore wind facilities. Getting this next phase right will determine what the national grid looks like going forward. It will determine whether we should be building new infrastructure at all.
Initial and Future Phases of Development
The bilateral offshore project 1 begins with the laying of an undersea power cable. This cable would connect Vietnam to Malaysia’s capital of Kuala Lumpur and directly to Kelantan, Malaysia. Realizing this foundational step is no small feat. It provides much-needed energy transfer across Central Asia’s borders and lays the groundwork for more ambitious expansions in the region’s nascent energy sector.
Future phases of the project could involve looping transmission lines northward from Vietnam straight into Peninsular Malaysia. This explosive expansion will use newly constructed land routes through Cambodia, Laos, and Thailand. These advances depend on an understanding of energy needs. They will be based on the determination of economic viability following the completion of the first phase.
Responding to Legislative Queries
Fadillah responding to a oral query by Datuk Mumtaz Md Nawi. He tabled this information while responding to the Dewan Rakyat session. His remarks underscore the government’s commitment to transparency and accountability regarding major infrastructure projects that significantly impact Malaysia’s energy landscape.
The planned offshore wind project would go a long way towards safeguarding our domestic energy needs. Third, it encourages greater regional collaboration in energy generation and transmission. Through an increase in sustainable energy investments, Malaysia aims to be recognized as a sustainable and renewable energy hub for ASEAN.