The Ministry of Energy Transition and Water Transformation (PETRA) will soon launch the commercial trading of Renewable Energy Certificate (REC) through the Malaysia Green Attribute Trading System (mGATS), developed and operated by Tenaga Nasional Berhad (TNB) through its subsidiary, TNBX Sdn. Bhd.
This effort is in line with the country’s commitment to achieving net zero carbon emissions earliest by 2050.
The mGATS platform has been in operation since 2019 as a one-stop center for REC-related information and green attribute tracking system for REC issuance from renewable energy power plants in Peninsular.
The platform’s functions has been expanded and rebranded to enhance the administration and management of green attributes, including RECs, in a more efficient, systematic and holistic manner, the ministry said in a statement today (May 8)
The rebranding and new functions of mGATS were unveiled by Deputy Prime Minister Dato’ Sri Fadillah Yusof while officiating The International Greentech & Eco Products Exhibition & Conference Malaysia (IGEM) 2023 in October 2023.
This strategic move aligns with the focused emphasis on ESG commitment compliance on the use of green electricity adopted by corporate companies, considering that electricity generation from fossil fuels is among activities with high carbon emission intensity.
The mGATS trading platform will enable transparent, traceable, and systematic transaction for the offering, purchasing, and trading of RECs.
The Renewable Energy Certificate or REC that is traded through mGATS served as documentary evidence that 1 megawatt hour (MWh) of electricity was generated from renewable sources such as solar, hydro, biomass and biogas.
Such verification methods are widely adopted by corporate companies globally to demonstrate adherence to ESG commitments on the utilisation of green electricity supply.
RECs can either be bundled with grid electricity and offered as green electricity to consumers such as through the Green Electricity Tariff (GET) Programme, or it can be offered separately (unbundled) to consumers, including to corporate companies, as proof of green electricity utilisation, such as this initiative through the mGATS platform.
The commercial trading of REC through the mGATS will commence with user registration from 8 May 2024, accessible via the https://platform.mgats.com.my trading page.
The platform operator will ensure that all traded RECs are internationally certified by reputable registry such as the I-TRACK Foundation, to ensure credibility. Details about the commercial trading of REC through mGATS can be found on www.mgats.com.my.
To ensure that the RECs produced in Malaysia effectively contribute to the country’s carbon footprint reduction target and are fully accessible to corporate companies operating within the country, RECs generated in Peninsular Malaysia through Government’s renewable energy programmes cannot be transferred abroad except through the Energy Exchange Malaysia (ENEGEM) or government-approved programmes.
This is to ensure that access to green electricity and its associate benefits reamined as a compelling incentive for high-value investment in Malaysia.
With the commencement of REC trading through mGATS, PETRA is confident that it will unlock new opportunities and added value, further accelerating the development of Malaysia’s renewable energy industry, while positively contributing to our country’s energy transition and climate change goals.
