Northern Corridor Future-Proofs Industry with Renewable Energy

Malaysia’s Northern Corridor is fast emerging as a strategic hub for clean energy-driven industrial development, in line with the National Energy Transition Roadmap (NETR). At the centre of this transformation is the NCER Special Renewable Energy Economic Zone (SREEZ@NCER —a future-ready model designed to attract high-value investments by integrating renewable energy solutions into industrial ecosystems.

Set to achieve a 70% renewable energy mix by 2030 across NCER-operated industrial parks, including Kedah Rubber City (KRC), Chuping Valley Industrial Area (CVIA), and Kedah Science & Technology Park (KSTP), the SREEZ@NCER initiative is an ambitious blueprint for green industrial development.

Piloted at KRC, SREEZ@NCER is built around a three-part framework: (1) Effective Generation, (2) Optimised Consumption, and (3) Strategic Storage – with solar power forming the primary energy source. Through a combination of rooftop systems, land-based solar farms, and battery storage infrastructure, the model delivers a stable, cost-efficient clean energy supply tailored for manufacturers and industrial tenants.

Out of approximately 11,000 acres identified for potential inclusion under SREEZ@NCER, the pilot project at KRC represents the first step in this scalable initiative. While the long-term vision includes renewable energy development across designated areas, the initial focus on KRC will demonstrate the model’s viability, with plans to expand to other industrial parks in the Northern Corridor as the framework proves successful.

This initiative stands out for its private sector-led approach. Developers and clean energy providers will be invited to invest and operate solar energy infrastructure within the region, with support from regulatory frameworks and facilitation from relevant authorities. This reduces capital strain on public resources while encouraging innovation, efficiency and best practices.

As Dato’ Mohamad Haris Kader Sultan, Chief Executive of the Northern Corridor Implementation Authority (NCIA), aptly notes, “The energy transition is not just about reducing emissions. It’s a strategic move to enhance our region’s competitiveness, attract export-driven industries, and future-proof our economy.”

The SREEZ@NCER model is expected to attract a new wave of Foreign Investment (FI) from multinational companies seeking to align with ESG targets and reduce carbon intensity within their supply chains. Its value proposition is especially relevant for manufacturers targeting export markets like the European Union, where instruments such as the Carbon Border Adjustment Mechanism (CBAM) are reshaping trade dynamics.

Beyond investor interest, SREEZ@NCER promises broader economic benefits and environmental gains for the Northern Region, including job creation, strengthened local supply chains, and green technology spillover. The project’s estimated ROI is equally compelling: RM2-3 billion in Domestic Investment (DI) will flow into the region while cutting Scope 2 emissions by 76% (563 kilotonnes), with 70% renewable energy adoption demonstrating how sustainability drives competitiveness.

The model’s eventual expansion across other NCER industrial parks ensures that the benefits of the clean energy transition are inclusive, sustainable, and regionally transformative.

As Malaysia positions itself to lead in a rapidly evolving global energy economy, SREEZ@NCER reflects a powerful convergence of strategic policy, private sector innovation, and environmental commitment that can come together to create a new blueprint for sustainable industrial development—delivering not just competitiveness, but resilience for the future of industry.

For more information on investment opportunities, visit NCER’s website or contact at +604 502 0708 or via email at [email protected]

¹The EU’s Carbon Border Adjustment Mechanism (CBAM), effective since October 2023, places a carbon price on selected imports (e.g. iron and steel, aluminium, cement, fertilisers, electricity, hydrogen, and chemicals) to align with the EU’s domestic Emissions Trading System (ETS). In its transitional phase (2023–2025), importers must report embedded emissions; from 2026, they must purchase CBAM certificates. For Malaysian exporters, especially in emissions-intensive sectors, transitioning to renewable energy and improving emissions tracking is key to maintaining EU market access.

Disclaimer: All figures in this article are under the purview of NCER and are for informational purposes only. For specific details regarding investments and initiatives, please refer to official NCER communications.