PUTRAJAYA: The first cross-border trade of Renewable Energy (RE) from Malaysia to Singapore, with a capacity of 50 megawatts (MW), will begin this month, says the Energy Transition and Water Transformation Ministry.

This inaugural supply of green electricity across the border is the result of a competitive bidding process conducted through Energy Exchange Malaysia (Enegem) in June.

“Tenaga Nasional Bhd (TNB), as the national utility company, will supply the electricity to Singapore through Sembcorp Power Pte Ltd (Sembcorp Power) using the existing interconnection network between the two countries,” the ministry said yesterday.

The bidding process via Enegemis is part of the ministry’s initiative under the Cross Border Electricity Sales for Renewable Energy Scheme (CBES RE).

This phased initiative aims to achieve a total capacity of up to 300MW using the existing interconnection network between Malaysia and Singapore.

The ministry said Enegem facilitates the procurement and supply of green electricity from Malaysia’s power grid to Singapore via a competitive bidding mechanism.

The implementation of CBES RE aligns with Malaysia’s energy transition aspirations and its commitment to supporting regional electricity supply integration initiatives through the Asean Power Grid, it added.

This agenda is a key priority as Malaysia prepares to assume the Asean chairmanship in 2025, it said.

Earlier, a ceremony to sign the Renewable Energy Supply Agreement between TNB and Sembcorp Power was held at the ministry, witnessed by representatives from both governments.

Last month, Deputy Prime Minister Datuk Seri Fadillah Yusof announced that Malaysia’s cross-border RE auction for Singapore’s energy importer under Enegem would begin by year-end.

Fadillah had said by integrating regional power grids, the country aims to strengthen energy security across Asean member states.

“It can also serve as an economic catalyst in fostering regional cooperation through cross-border RE trade.

“By sharing excess energy, the country can reduce reliance on fossil fuels while building an integrated Asean energy infrastructure,” he added.

Fadillah, who is also the Energy Transition and Water Transformation Minister, confirmed that coal-fired generation will be gradually phased out.

He cited the International Energy Agency’s clear stance that reducing coal dependency is crucial to limiting global warming, and stressed Malaysia’s commitment to this objective.

“We will continue to enhance grid flexibility by investing in and developing smart grids, digitising the power system, and expanding energy storage systems.

“By 2035, we aim to increase grid flexibility by 20%, enabling greater integration of RE sources,” he added.

Under the National Energy Transition Roadmap, the government aims to raise RE’s contribution to Malaysia’s installed power capacity to 70% by 2050, up from the current 28%.

https://www.thestar.com.my/news/nation/2024/12/10/msia-to-help-power-spore