Malaysia has established its own energy exchange, Energy Exchange Malaysia (Enegem), to facilitate cross-border trading of green electricity. The inaugural auction, set to export 100 megawatts (MW) to Singapore, will be opened exclusively to entities holding electricity generation and/or retailer licenses for the Singapore Electricity Market.
The Malaysian Ministry of Energy Transition and Water Transformation (Petra) announced that the initial auction will exclusively invite entities holding an electricity generation and/or retailer license for the Singapore Electricity Market. Interested parties must register with the single buyer to participate in the auction. Successful bidders will then proceed with the purchase of green electricity, entering into renewable energy (RE) supply agreements with the single buyer. Trading operations on the Enegem platform will comply with the Guide for Cross-Border Electricity Sales (CBES) issued by the Malaysian Energy Commission.
Enegem platform is managed by utility company Tenaga Nasional Bhd (TNB) which oversees the planning and electricity procurement in Peninsular Malaysia. Despite no new solar or conventional power plant projects announced for energy exports to Singapore, Malaysia’s existing RE supply supports initiatives like the Green Electricity Tariff (GET) program. This program allows TNB customers to access green electricity from renewable sources, reducing their carbon footprint. Petra has introduced a new tiered pricing system for GET, applicable to a 2024 quota of 6,600 gigawatt-hour (GWh).
(Sources: The Edge Malaysia, New Straits Times)
