For years, Malaysia has been actively pushing a decarbonisation agenda, aiming to reduce greenhouse gas emissions in line with global calls for a just and inclusive energy transition.
Following closely in the country’s footsteps, Malaysia’s largest electricity utility company Tenaga Nasional Berhad (TNB) has been spearheading a green outlook to achieve net zero emissions by 2050.
Beginning in 2024, we aim to reduce our annual Scope 1 carbon emission intensity by 5% each year. We remain steadfast in our goal to achieve a 35% reduction by 2035, on our path toward net-zero by 2050. This is a move that requires a dedicated working commitment towards that goal, all while trying to meet the ever-rising demands of Malaysian consumers.
We are committed to lowering carbon emission intensity (tCO₂e/MWh) through the implementation of our Carbon Management Strategy and the expansion of Renewable Energy (RE) capacity. These key initiatives help us reduce emission intensity from our operations while paving the way for long-term sustainability by incorporating renewable energy sources and advanced carbon management technologies. With this strategy now in place, we pursue the 5% annual reduction in Scope 1 carbon emission intensity moving forward.
Our Carbon Management Strategy is centred on reducing, capturing, and offsetting carbon emissions (tCO₂e) across TNB’s operations. Simultaneously, we will continue to grow our RE capacity both within Malaysia and internationally.
Steady Progress Amid a Promising First Quarter
TNB began 2025 with a clear goal: to cut carbon emission intensity by 5% compared to 2024 levels. Last year, the company’s operations carried a carbon emission intensity baseline of 0.5571 tCO₂e/MWh, making it already on par with utility with similar generation mix1 around the world.
A 5% reduction in emissions intensity meant that the company would have to achieve 0.529 tCO₂e/MWh by the end of the year, which can be achieved by improving plant efficiency and maximizing net generation from renewable energy.
We are pleased to report that as of 1QFY2025, we have made steady progress against our target and are on track to achieving our carbon emission intensity reduction target for 2025.
This success was achieved thanks to the following factors:
The TNB Manjung 5 Power Station registering a 0.7% year-to-date efficiency improvement against its 2024 performance.
Net generation of renewable energy contributed from local Large-Scale Solar (LSS) plants and international renewable energy (RE) assets, amounting to a year-to-date energy supply of 330GWh.
These results show that TNB's dual approach in regards to carbon management and the expansion of renewables capacity is not only theoretically sound but also working well.
Improving Heat Rate Leading to Lower Carbon Emissions
But that’s not all. With three quarters remaining, TNB’s strong Q1 performance in reducing emissions intensity shows strong momentum in realizing the company’s ultimate net zero goals.
The company is currently witnessing some promising leads in this area, particularly with plant efficiency improvement by its subsidiary TNB Power Generation Sdn. Bhd. (TNB Genco), contributing 1.1% of the 5% emission intensity reduction target in 2025.
Several initiatives implemented at coal power plants including:
TNB Manjung 5 (TNB M5)
Improvement of condenser backpressure.
Improvement of make-up water.
These measures have resulted in a 1% heat rate improvement, leading to an emission reduction of approximately 0.0074 tCO₂e/MWh.
TNB Jimah East Power (JEP):
Meanwhile, at the JEP, the High Pressure (HP) heater replacement work is already ongoing. Upon completion, it is expected that the power station will deliver a 2.4% heat rate improvement, reducing emissions approximately 0.02035 tCO₂e/MWh.
Complementing these initiatives is the Digital Twin technology, which enables the real-time monitoring aimed at improving overall plant efficiency.
In addition to the above, TNB has also embarked in the Turnaround Excellence Program since 2021, aims to analyze current plant performance, discover new initiatives and monitor the implementation. The dedicated expert team focuses on Energy Efficiency, Operations and Supply Chain workstreams.
With regards to lowering carbon emission, the Energy Efficiency workstream focuses on boosting power plant technical performance by improving power plant heat rate, and optimizing internal power consumption of the plants, in line with TNB Sustainability Pathway 2050. The Turnaround Excellence Program rapidly improves operational and financial performance at power plants.
The initiatives carried out at coal plants focuses on high impact initiatives such as combustion tuning to reduce incomplete combustion loss at coal plants, and condenser vacuum optimization at gas plants.
As a result, about 0.5% heat rate improvement can be observed generally at thermal plants annually, emphasizing the importance to carry out additional optimization measures beyond normal operation.
Ultra-Supercritical Coal Fired Technology Further assisting to Lower Carbon Emissions
Malaysia’s adoption of ultra-supercritical (USC) coal-fired technology—evident in our plants of TNB M4, TNB M5 and JEP, places it among the top performers in Southeast Asia for high-efficiency, low-emission coal power. USC plants operate at higher temperatures and pressures (above 600°C and 25 MPa), enabling thermal efficiencies of around 40–42%, compared to 33–38% in older coal plants. This results in reduced coal consumption per megawatt-hour, thus lower emissions. Our USC plants have demonstrated emissions intensity performances ranging between 0.67–0.70 tCO₂e/MWh, comparable with global USC performance standards2 which is between 0.6 – 0.73 tCO₂e/MWh, including Australian USC3 which is between 0.67 – 0.74 tCO₂e/MWh, and aligning closely to benchmarks observed in Europe which is leading the USC performance.
TNB is taking a pragmatic energy transition approach—leveraging high-efficiency with lower emissions power plants to maintain grid reliability and affordability, while gradually increasing investments in renewables and grid modernization to align with long-term decarbonization goals.
Charging Ahead to Meet Net Zero
Though TNB has successfully achieved its 2025 carbon emission intensity reduction target within the first quarter, a promising start to a 25-year journey towards net zero by 2050, the company is not content to rest on its laurels.
While confident of a working strategy coupled with a staff determined to realize sustainability goals, the utility giant is aware that fulfilling its ultimate green objectives will require a sustained company-wide effort.
The road ahead will take a lot of work, but bolstered by this initial success, TNB is keen to use this early momentum to push forward as it leads the charge in Malaysia’s just and inclusive energy transition.