The Ministry of Energy Transition and Water Transformation ( PETRA ) is inviting interested and eligible parties to participate in the inaugural auction to purchase green electricity from Malaysia ’ s electricity supply system to be supplied to Singapore via the ENEGEM platform .

“ The auctioning process for crossborder sales of green electricity shall commence with a 100 megawatts ( MW ) pilot run , utilising the existing interconnection between Singapore and Peninsular Malaysia ,” it said in a statement .

It said among the key features of the auction for the purchase of green electricity is the pilot scheme open to Renewable Energy ( RE ) bidders who hold electricity generation and / or retailer licences for the Singapore Electricity Market .

Interested RE bidders must register with a single buyer to participate in the auction .

“ Upon completion of the qualification process , successful applicants would be notified to proceed with the auction to purchase green electricity on the designated auction day ,” it said .

PETRA said the winning bidders

“ The auctioning process for crossborder sales of green electricity shall commence with a 100 megawatts ( MW ) pilot run , utilising the existing interconnection between Singapore and Peninsular Malaysia .”

would then enter RE supply agreements with the single buyer to sell and purchase green electricity .

“ Interested RE bidders may register their intent to participate through PETRA or the single buyer ’ s website starting tomorrow ( April 16 ),” it stated .

PETRA said the cross-border energy sales through the ENEGEM platform would be implemented based on the latest ‘ Guide for Cross-Border Electricity Sales ( CBES ) issued by the Energy Commission , PETRA .

“ Auctioning via the ENEGEM platform would allow Malaysia to strengthen its cross-border electricity integration

framework further while paving the way for greater renewable energy development and regional cooperation on cross-border energy trading between Asean countries ,” it said .

PETRA said setting up ENEGEM aligns with Malaysia ’ s energy transition aspiration and commitment to supporting regional power integration via the Asean Power Grid ( APG ) initiative .

“ The APG is an initiative to construct a regional power interconnection to connect the region , first on a crossborder bilateral term , and then gradually expand to a sub-regional basis leading to a total integrated Southeast Asia power grid system ,” it said .

MALAYSIA ’ S decision to establish an energy exchange platform to promote cross-border renewable energy trade will boost the country ’ s renewable energy economy .

Maybank Investment Bank said renewable energy exports might be a new revenue source and capacity growth engine for Malaysia ’ s renewable energy sector .

It stated the launch of the energy exchange platform was another step towards cross-border trading of renewable energy in Malaysia .

Renewable energy export can be a new revenue source ( renewable energy sales and wheeling charges ) and a capacity expansion driver for Malaysia ’ s renewable energy industry , which is currently reliant on domestic large-scale solar [ LSS ] and corporate green power programme [ CGPP ] programmes .

To summarise , Singapore has set a target of importing up to four gigawatts ( GW ) of low-carbon electricity ( about 30

per cent of Singapore ’ s electrical supply by 2035 ).

The present Plentong-Woodlands Interconnector permits a bidirectional electrical flow of approximately 1GW between Malaysia and Singapore .

“ Overall , we remain positive on Malaysia ’ s renewable energy sector , for which engineering , procurement , construction and commissioning ( EPCC ) order book replenishment is impending from both the 800 megawatts ( MW ) of CGPP and c . 2GW of LSS5 projects ,” said the research house .

CGS International stated the establishment of ENEGEM was encouraging since it strengthened its opinion of good follow-through on implementing the National Energy Transition Roadmap ( NETR ) barely eight months after its debut .

It stated that the government ’ s move contributes to the positive progress being made on NETR projects , which should help alleviate investors ’ concerns

about their implementation .

“ It also marks a key step towards realising the country ’ s energy export potential ,” said CGS International .

CGS International continues to see 2024 as a watershed moment for Malaysia ’ s utility sector , with the establishment of critical building blocks laying the groundwork for the country ’ s ambitious energy transition roadmap , underpinning the sector ’ s long-term earnings growth outlook through 2030 and potentially beyond .

MIDF Research viewed the government ’ s decision favourably for the renewable energy industry .

According to the research firm , the renewable energy EPCC sub-sector will benefit the most from Malaysia ’ s renewable energy measures in the short term .

While the experimental 100 MW export capacity is tiny , MIDF stated that Singapore plans to import up to 3.5 GW of green electricity by 2035 . – @ green