Saudi Arabia-based energy transition and water desalination company ACWA Power has announced the signing of a memorandum of understanding (MoU) and strategic partnership agreements (SPAs) with major Malaysian entities for investments of up to $10bn.
The partnerships, formed during the ASEAN-GCC summit held in Kuala Lumpur, Malaysia on 27 May 2025, aim to leverage the country’s ecosystem and Saudi Arabia’s expertise in energy transitions while supporting decarbonisation efforts across Southeast Asia.
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ACWA Power signed an MoU with the Malaysian Investment Development Authority (MIDA) to explore the development of up to 12.5GW of power generation capacity by 2040, involving an initial investment of $10bn.
This partnership will help Malaysia raise its installed renewable energy capacity to 70% by 2050.
ACWA Power has also signed SPAs, along with heads of terms (HoTs) for joint development agreements, with Tenaga Nasional Berhad (TNB), Terengganu and UEM Lestra.
These agreements will facilitate feasibility studies and joint development of projects, including floating solar photovoltaic systems (FPV), combined cycle-gas turbine technology (CCGT) and large-scale water desalination.
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By GlobalDataThe collaborations unlock opportunities across renewable energy, green hydrogen production and advanced water solutions, aligning with Malaysia’s National Energy Transition Roadmap (NETR).
They will also contribute towards achieving objectives set out by Saudi Vision 2030 for global climate leadership.
ACWA Power CEO Marco Arcelli stated: “These strategic agreements represent a significant milestone in ACWA Power’s expansion in Southeast Asia and reflect our commitment to supporting Malaysia and the broader ASEAN region’s energy transition.
“By combining our global expertise in renewables, water desalination, and green hydrogen with the local knowledge of our Malaysian partners, we are not only accelerating the deployment of clean energy solutions but also fostering technology transfer, job creation and long-term economic growth and social well-being of the local community.”
In February 2025, ACWA Power entered a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for a 2GW wind project in Egypt.
