The Malaysia government is investing $3 billion through energy provider Tenaga Nasional Berhad (TNB) to build four power plants.
These include the 1,000MW coal-fired plant in Manjung in the northern state of Perak, and hydropower plants in Hulu Terengganu and Ulu Jelai in Pahang with installed capacities of 250MW and 378MW respectively.
Construction of the plants which have started is expected to be completed in the second quarter of 2015.
The fourth is a 1,000MW coal-fired plant in Tanjung Bin in the southern state of Johor.
Tanjung Bin is the first private coal-fired plant in Malaysia, and is scheduled to be operational in July 2016.
TNB president and CEO Che Khalid Mohamed Noh said when the four plants are operational, capacity will be increased by 2,630MW.
The current generating capacity is 20,500MW of which 12,000MW is gas-fired, 7,000MW coal-fired and 1,500MW from hydropower.
On future projects, Che Khalid said gas-fired plants will be the focus as it has minimal impact on the environment.
According to Che Khalid gas accounts for 40 per cent of the world's power generation currently and is projected to grow to 50 per cent in 2020 and 60 per cent in 2030.
Che Khalid was speaking to reporters after the launch of the river diversion stage of the Hulu Terengganu hydropower plant.