Saudi Arabia’s ACWA Power has signed a series of strategic agreements in Malaysia that could lead to investments worth up to $10 billion, as the company ramps up efforts to expand its footprint in Southeast Asia’s energy transition sector.

The announcements were made during the ASEAN-GCC Summit held in Kuala Lumpur and mark a significant step in aligning Saudi expertise in green energy with Malaysia’s ambitious National Energy Transition Roadmap.

Central to the agreements is a memorandum of understanding between ACWA Power and the Malaysian Investment Development Authority, aimed at exploring up to 12.5 gigawatts of new power generation capacity by 2040.

The partnership supports Malaysia’s goal of boosting renewable energy to 70 percent of its installed capacity by 2050.

“The strategic agreements represent a significant milestone in ACWA Power’s expansion in Southeast Asia,” said Marco Arcelli, CEO of ACWA Power. “By combining our global expertise with local knowledge, we are accelerating the deployment of clean energy solutions while fostering technology transfer, job creation, and long-term economic growth.”

Joint Ventures for Green Hydrogen and Water Projects

Beyond the MIDA deal, ACWA Power inked strategic partnership agreements with several key Malaysian entities, including Tenaga Nasional Berhad, Terengganu Inc. and UEM Lestra.

The agreements aim to conduct feasibility studies and jointly develop projects in areas such as floating solar photovoltaics, combined-cycle gas turbines and large-scale water desalination.

These projects are expected to play a crucial role in enhancing Malaysia’s sustainable energy and water infrastructure, with a particular emphasis on emerging technologies, such as green hydrogen.

Alignment with Vision 2030 and ASEAN Goals

The partnerships underscore the strategic synergy between Malaysia’s innovation-driven economic agenda and Saudi Arabia’s Vision 2030, which seeks to position the kingdom as a global leader in climate action and energy diversification.

ACWA Power, the world’s largest private water desalination company and a pioneer in green hydrogen, operates in 14 countries with a global investment portfolio valued at USD 107.5 billion.

The deals further cement ACWA Power’s status as a major player in the international energy landscape. With a focus on scalable, commercially viable projects, the company has been at the forefront of deploying renewable and low-carbon solutions across emerging and developed markets.

“These partnerships are a testament to our shared vision for a sustainable future,” Arcelli added.

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