Tenaga Nasional Bhd (TNB) and Singapore’s licensed electricity importer, Sembcorp Power Pte Ltd, a wholly owned subsidiary of Sembcorp Industries Ltd, would be advancing the region energy sustainability initiative after both firms signed a Renewable Energy Supply Agreement (RESA) on Dec 9.
This milestone, part of the Cross-border Electricity Sales for RE (CBES RE) Scheme, aligned with the ASEAN Power Grid (APG) initiative and Malaysia’s energy transition goals of facilitating RE trade with neighbouring countries through Energy Exchange Malaysia (ENEGEM).
In June 2024, ENEGEM, operated by Single Buyer, conducted its inaugural auction, where Sembcorp secured a 50-megawatt (MW) allocation of green electricity with RE Certificate, 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 RESA signing ceremony, held at Menara PETRA, Putrajaya, was inked by TNB President/Chief Executive Officer Datuk Ir Megat Jalaluddin Megat Hassan and TNB Company Secretary Ali Munawar Salim on behalf of TNB, and Sembcorp Power Director Vickrem Vijayan along with its Head of Legal and Compliance for Singapore and Southeast Asia Rachel Yee on behalf of Sembcorp.
It was witnessed by Deputy Secretary General (Energy) of the Energy Transition and Water Ministry Datuk Mohamad Razif Abd Mubin, Director of the Energy Division at Singapore’s Ministry of Trade and Industry Andre Oei, TNB Chairman Tan Sri Abdul Razak Abdul Majid and Sembcorp’s Chief Executive Officer for Singapore and Southeast Asia Koh Chiap Khiong.
Megat Jalaluddin commented that 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 RE goals.
“This initiative positions Malaysia as a key player in green electricity trading and promotes energy security, efficiency and sustainability across the region,” Megat Jalaluddin said in a statement.
He added that 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 Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) Phase 2.
The recently signed Cross-border Power Trade Interconnection Agreement between TNB and SP PowerAssets Ltd in September 2024 further emphasises 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 decarbonisation 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.
