Malaysia to start its first cross-border renewable energy (RE) trade with Singapore this month. The project, with a capacity of 50 megawatts (MW), is part of a renewable energy initiative led by Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA).
The electricity supply will be handled by Tenaga Nasional Berhad (TNB), Malaysia’s national utility company. It will deliver the renewable energy to Singapore’s Sembcorp Power Pte Ltd (Sembcorp Power) through the existing interconnection network between the two countries.
The renewable energy supply comes from a competitive bidding process conducted by Energy Exchange Malaysia (ENEGEM) in June. ENEGEM facilitates the procurement and delivery of green electricity through a transparent auction system. The project is part of PETRA’s Cross-Border Electricity Sales for Renewable Energy Scheme (CBES RE). PETRA has announced that the scheme aims to provide up to 300 MW of renewable energy using existing interconnection infrastructure.
This cross-border trade is also connected to the ASEAN Power Grid (APG) initiative. The APG aims to build an integrated energy system for the region, promoting sustainability and energy security. Malaysia is supporting this initiative as it prepares to chair ASEAN in 2025.
A while ago, a Renewable Energy Supply Agreement was signed between TNB and Sembcorp Power at PETRA. Officials from both governments witnessed the signing. Under the agreement, the 50 MW of electricity will be sourced from solar and hydropower facilities in Malaysia, along with renewable energy certificates.
TNB President and Chief Executive Officer Megat Jalaluddin Megat Hassan stated that this project positions Malaysia as a renewable energy supplier in the region. He added that the initiative supports decarbonization and strengthens energy security through regional collaboration. PETRA explained that this project establishes the foundation for future energy trade expansions and enhances collaboration among ASEAN nations.
