Malaysia-based utility firm Tenaga Nasional Berhad (TNB) and Singapore’s licensed electricity importer, Sembcorp Power (Sembcorp), a wholly-owned subsidiary of Sembcorp Industries, have advanced regional energy sustainability by signing a renewable energy supply agreement (RESA) on Monday.

TNB said in a statement that this milestone, part of the cross-border electricity sales for renewable energy (CBES RE) scheme, aligns with the ASEAN Power Grid (APG) initiative and Malaysia’s energy transition goals, facilitating renewable energy trade with neighboring countries through Energy Exchange Malaysia (ENEGEM).

In June 2024, ENEGEM, operated by Single Buyer, conducted its inaugural auction, where Sembcorp secured a 50MW allocation of green electricity with renewable energy certificate (REC), sourced from Malaysia’s solar and hydro generation.

This green electricity will be transmitted to Singapore using the existing Malaysia-Singapore interconnection, demonstrating progress in regional energy integration.

“The establishment of ENEGEM and the successful execution of this agreement reflect TNB’s unwavering commitment to fostering regional energy integration and advancing ASEAN’s renewable energy goals,

“This initiative positions Malaysia as a key player in green electricity trading and promotes energy security, efficiency, and sustainability across the region,” said Megat Jalaluddin Megat Hassan, TNB President and Chief Executive Officer.

According to the statement, this initiative is a cornerstone of the APG, which envisions a sustainable, interconnected energy system for the region.

Currently, the interconnection capacity between Malaysia and Singapore stands at 1,000MW, with 300MW allocated for the CBES RE Scheme and 200MW for the Lao PDRThailand-Malaysia-Singapore Power Integration project (LTMS-PIP) Phase 2.

The recently signed Cross-border Power Trade Interconnection Agreement (CBPTIA) between TNB and SP PowerAssets Limited in September 2024 further emphasizes the commitment to enabling seamless cross-border electricity transactions.

The first 50MW contribution under the pilot phase of the CBES RE Scheme highlights Malaysia’s potential as a regional hub for green electricity.

By leveraging ENEGEM, this initiative sets the foundation for future expansions and long-term collaborations, ultimately driving decarbonization and strengthening regional energy security.

“TNB remains steadfast in driving ASEAN’s energy transformation,

“Through ENEGEM and our smart grid investments, we are committed to delivering sustainable energy solutions and achieving Malaysia’s net-zero aspirations,” added Megat Jalaluddin.

TNB is a Malaysian utility company in Asia with an international presence in the United Kingdom (UK), Ireland, Australia, Turkiye, Saudi Arabia, Kuwait, Pakistan, and Cambodia.

Within the renewable energy space, as of December 2023, TNB has a total gross portfolio of 3,119MW in Peninsular Malaysia (including 2,536.1MW of large hydro) and 1,183MW across the United Kingdom, Ireland, Australia, and Turkiye, comprising mainly solar, wind, and hydro energy generation assets.

In addition to being Malaysia’s primary electricity generation enterprise, TNB also transmits and distributes all the electricity in Peninsular Malaysia, Sabah, and the Federal Territory of Labuan.

As of 30 June 2024, TNB supplies electricity to over 11 million customers.

Single Buyer, authorised under the Electricity Supply Act (ESA) 1990, is tasked with electricity planning and procurement in Peninsular Malaysia.

It ensures an efficient, reliable, and affordable power supply by sourcing electricity from independent power producers (IPPs) and TNB Generation, managing generator agreements, and optimizing fuel and renewable energy
resources.

Single Buyer also develops demand forecasts, long-term capacity plans, and least-cost dispatch schedules, while providing independent technical advice to relevant agencies.

Sembcorp Industries is a leading energy and urban solutions provider, led by its purpose to drive energy transition.

Headquartered in Singapore, Sembcorp delivers sustainable solutions to support energy transition and urban development.

Sembcorp has a balanced energy portfolio of 25.4GW, including 16.0GW of gross renewable energy capacity, across ten countries (total gross capacity assumes 100 percent ownership of assets, including projects secured and under construction, and an acquisition pending completion).

Its urban development projects span over 14,000 hectares across Asia and have generated over 377,000 employment opportunities and attracted close to $50 billion of investment capital.

Sembcorp is listed on the main board of the Singapore Exchange.

#RenewableEnergy #CrossBorderTrade #GreenElectricity #ASEANPowerGrid #EnergySustainability