Malaysia Approves 18 Waste-to-Energy Projects to Add 600MW of Renewable Power

Malaysia is accelerating its shift toward a more circular waste management system, with the government approving 18 waste-to-energy (WTE) projects through 2040 that are expected to generate up to 600MW of renewable energy.

Housing and Local Government Minister Nga Kor Ming said the projects form part of the country’s long-term strategy to modernise solid waste management, reduce dependence on landfills, and expand renewable energy generation in line with the Malaysia Madani framework.

Two WTE facilities are already operational at Ladang Tanah Merah in Port Dickson, Negri Sembilan, and Jeram 1 in Selangor, while three more are under construction in Sungai Udang, Melaka, Tanjung 12, Selangor, and Jeram 2, Selangor.

The technology uses controlled combustion to reduce the volume of municipal waste while converting the resulting heat into electricity. According to the government, WTE facilities can reduce solid waste volumes by up to 85%, with the remaining ash potentially being reused in commercial and construction applications.

The planned expansion is intended to move Malaysia away from a landfill-dependent model toward a circular economy approach, where waste is treated as a potential resource rather than simply discarded.

The government says the programme could strengthen Malaysia’s waste infrastructure while supporting renewable energy generation and resource recovery. However, the expansion of WTE will also require strong emissions controls, effective waste segregation, and responsible ash management to ensure environmental benefits translate into long-term sustainability.

With 18 projects planned by 2040, Malaysia is positioning waste-to-energy as a key component of its efforts to build a more modern, resource-efficient, and resilient waste management system.

18 waste-to-energy projects adding 600 MW combines municipal circular-economy with renewable-power supply, and it changes both Scope 2 procurement optionality and waste-management economics. Our circular-economy and energy-transition teams help clients evaluate WtE opportunities against project economics, air-quality disclosure and community-engagement expectations.