In brief
At the end of February 2026 and just off the back of the selection of successful bidders for NEWGEN25, the Energy Commission announced another open competitive bidding process for new generation capacity for gas power plants scheduled to commence operations between 2029 and 2031 i.e., New Generation Capacity in Year 2029 To 2031 ("NEWGEN26"). The project aims to ensure the stability of electricity supply in Peninsular Malaysia and to maintain the reserve margin of electricity supply at an optimal level.
Key takeaways
The Energy Commission is inviting interested companies or consortia with extensive experience in energy generation projects including project financing and power plant operations to participate in the competitive bidding process in accordance with the criteria set out in the request for proposal (RFP) document. In contrast to NEWGEN25, the RFP is only in respect of new gas fired power plants.
The RFP document will be available for purchase online via the Energy Commission's website (www.st.gov.my) from 2 March 2026 at 9:00 AM to 13 March 2026 at 5:00 PM at MYR 30,000 per RFP document. Further information on obtaining the RFP is available on the Energy Commission's website, linked here: Tatacara Pembelian Dokumen RFPv2.pdf
Complete tender bid documents must be physically submitted and received by the Energy Commission no later than 1 July 2026 at 12:00 PM at the Energy Commission's headquarters.
Conclusion
As there was only one shortlisted bidder for new gas fired power plants (i.e., Category 2) under NEWGEN25, this latest RFP represents a second opportunity for bidders who missed out on NEWGEN25 and on potentially better terms as compared to NEWGEN25. The introduction of another round of bids for new gas fired power plants is also consistent with the other initiatives that the Energy Commission has introduced to further Malaysia's net-zero agenda.
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Faez Abdul Razak, Partner, and Jenny Yong, Associate, have contributed to this legal update.
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