Its minister, Fadillah Yusof, said nuclear power is among the clean energy sources that could meet the expected surge in electricity demand, especially from industries, data centres and electric vehicles, which require a stable and economically competitive supply.
Simultaneously, coal-generated baseload power is projected to decline significantly by 2035, he told Bernama.
Fadillah said the ministry, through its special-purpose agency MyPower Corporation, is conducting a feasibility study that includes reviewing the latest nuclear technologies and revisiting the Malaysia Nuclear Power Corporation studies completed before its closure in 2018.
“Among others, we are looking into the conventions on the peaceful uses of nuclear energy, regulations for safety, security and safeguards, and stakeholder considerations.
“The study will provide recommendations to the government on the feasibility of nuclear power as an alternative fuel for electricity generation,” he said.
Fadillah, who is also a deputy prime minister, said the study would explore nuclear technologies suited to Malaysia, including small modular reactors, as newcomer countries generally prefer proven nuclear power technology with strong operational track records aligned with international best practices.
“Nonetheless, there are several dimensions to this assessment, particularly the size and type of power requirement, development capital costs, operational considerations, risks, site and so on,” he said.
Nuclear power in Malaysia’s energy mix
Fadillah said there is no specific target yet for nuclear’s share in the energy mix, as a nuclear power policy must first be established.
“Nevertheless, the scope of the study includes determining the suitable quantum of nuclear power within the energy mix,” he said.
The factors to be considered include its role in providing baseload supply, complementing variable renewable energy, supporting industrial use, or serving as part of a micro-grid or rural electrification solution.
The diversification of the mix also depends on the availability and reliability of other sources, development timeframe, and costs of each option, he said.
“To give you a sense of how much this varies – in France, nuclear power makes up about 70% of their energy mix, while Sweden has about 30%. In comparison, China is at 5% with a near-term target of 10%.
“In a few newcomer countries that have recently established nuclear power such as in the United Arab Emirates, nuclear energy constitutes 25% of the country’s electricity needs while Bangladesh expects a 12% contribution from its first nuclear power plant,” he said.
Repurposing coal-fired plants for nuclear power
Fadillah said that in the US, ageing and defunct coal-burning plants are being repurposed for solar, battery, and other renewable energy projects, partly due to their valuable existing grid connections.
While Malaysia has set a phase-out plan for coal-fired plants – aiming to reduce their share to 50% by 2035 and fully retire them by 2044 – he noted that some coal-fired power plants (CFPPs) due to retire before 2030 could potentially be repowered with gas to meet the fast-growing electricity demand.
This transitional measure would improve overall greenhouse gas emissions intensity, he explained, as gas-fired plants are more efficient and emit roughly half the carbon of coal per unit of electricity produced.
However, he said there are no immediate plans to repurpose retired CFPPs for nuclear plants.
“We have seen reports that new nuclear power plants could save up to 35% on construction costs depending on the suitability of the existing site assets including grid connection,” he said.
He stressed, however, that any repurposing of CFPPs must fully comply with national regulations, international standards, and industrial practices, particularly on safety, environmental protection, and nuclear security.