Malaysia is witnessing a rapid growth within its Renewable Energy (RE) industry. As more corporates commit to reducing carbon footprint and be more sustainable, the country is well on its way to equipping not only businesses but also the everyday Malaysia with the necessary knowledge and tools to be greener and more conscious of their movements.
To enable electricity consumers to reduce their carbon footprint in electricity consumption, the Government has introduced the Green Electricity Tariff (GET) to offer zero carbon electricity supply to all consumers.
Domestic, commercial, and industrial electricity buyers in Peninsular Malaysia can already opt into the new GET programme since early December, with the first redemptions taking place in January 2022
Since its launch, nine major entities have announced plans to enrol in the clean energy subscription and this include CIMB Bank Berhad, Dutch Lady Milk Industries Berhad, Gamuda Berhad, HSBC Amanah Malaysia Berhad, MCIS Insurance Berhad, Nestlé (Malaysia) Berhad, Opensys (Malaysia) Berhad, Tenaga Nasional Berhad, and Zurich General Insurance Malaysia Berhad.
The Ministry of Energy and Natural Resources (KeTSA), Energy Commission of Malaysia, Sustainable Development Authority of Malaysia (SEDA) and MyPower Corporation are also subscribing to the programme and will be powering their offices with home-grown renewables from 2022.
Facilitated by TNB’s wholly-owned subsidiary, TNBX, the programme was introduced as an option to enable electricity consumers to reduce their carbon footprint in electricity consumption and with the implementation, consumers will have an option to purchase zero carbon electricity supply without having to install their own solar rooftop or other renewable energy installations.
Subscribers will receive a nominal surcharge for their clean power purchase (currently set at Malaysian Ringgit 3.7 sen per kilowatt-hour). In exchange, both corporate and household consumers will receive evidence of redemption through Malaysia Renewable Energy Certificate (mREC), which can be used for reporting and disclosure in line with CDP, Race to Zero, RE100, Science-Based Targets, and all other major reporting frameworks.
Consumers enrolled in the programme will receive mREC certified by internationally accredited registries after the end of the calendar year.
Subscription-based Tariff
“Our programme will enable consumers to subscribe to green electricity supply from utility companies and also enable companies to meet ESG commitment as well as reduce their carbon footprints from electricity consumption,” says Ir. Nirinder Singh Johl, Managing Director, TNBX.
He also highlights that the programme is an initiative in support of the country’s growing RE industry.
“Your purchase of green energy supports growth of the renewable energy industry instead of electricity produced from natural gas or coal-fired power plants. Furthermore, the GET programme enables your companies to enhance the image of the organisation using environmentally friendly green electricity,” he adds.
Subscribers to the programme will only pay a standard applicable tariff as per the Tariff Schedule for their monthly electricity consumption. This will be coupled with an additional payment of 3.7 sen/kWh for the total RE generation subscribed.
Furthermore, subscribers can also opt for subscription in blocks of 100kWh for residentials or 1,000kWh for non-residentials.
A Programme for All
The GET programme will be made available as an option to all consumer categories. According to Nirinder, the renewable energy resources for GET is generated by solar power plants under the Large-Scale Solar (LSS) programme and TNB’s and/or its subsidiary’s hydropower stations and any other renewable energy plans which may be approved by the Energy Commission from time to time.
The total subscription of GET Quota of all GET Consumer must not exceed the GET Quota as published on mGATS (https://www.mgats.com.my/green-electricity-tariff) and TNB’s website (https://www.tnb.com.my/get/).
However, to be to be enrolled for GET, consumers can now apply for it through myTNB web portal and enter into Green Electricity Tariff Agreement and once enrolled,GET consumers will receive a Welcome Letter. The subscription period for the programme is for 1 year and consumers may opt to increase subscription quota at anytime during subscription period.
For reduction or termination, consumers may apply before the end of the subscription period.
“This initiative is a big step for our country and the region. Our customers have long been asking for domestic clean energy products backed by international standards, and that is exactly what the mREC instrument delivers. The unique move we are making with GET is ensuring that anyone in the country can access high-quality clean energy—from major international companies down to household users. We’re the first in the region to provide a comprehensive green tariff program like this one, and we think it will open the door to building more clean power across the country,” Nirinder concludes.
