Malaysia to Launch First Renewable Energy Auction via Bursa Platform in November

Bursa Carbon Exchange, a unit under Bursa Malaysia Bhd, will host the country’s first bilateral renewable energy auction this November, marking a significant milestone in Malaysia’s clean energy transition.

The initiative follows a partnership agreement signed between Bursa Malaysia and UEM Lestra Bhd, the renewable energy subsidiary of sovereign wealth fund Khazanah Nasional Bhd. Through this collaboration, the exchange will provide its auction-as-a-service solution to facilitate a transparent and competitive bidding process under the government’s Corporate Renewable Energy Supply Scheme (CRESS).

The program enables corporations to bid for renewable energy certificates (RECs), directly aligning with their decarbonisation strategies by supporting the actual consumption of renewable power.

“This solution is designed to support efficient price discovery, allowing corporate buyers to secure competitively priced, certified green electricity from solar PV sources,” said Datuk Fad’l Mohamed, CEO of Bursa Malaysia, during the signing ceremony.

He noted that the auction will involve the bundled trading of renewable energy certificates (RECs), along with the associated clean energy and environmental attributes.

UEM Lestra is currently advancing several large-scale hybrid solar projects, including a 1 GW development in Segamat, Johor. This project will be the first to participate under the CRESS framework, which was launched in September 2024 to increase corporate access to renewable energy through third-party access to the national grid in Peninsular Malaysia.

“This platform could transform how the corporate sector engages with Malaysia’s energy transition,” said Harman Faiz Habib Muhamad, CEO of UEM Lestra, at the event.

The initiative also aligns with Malaysia’s national climate objectives: reducing carbon emissions intensity by 40% by 2030 and increasing the renewable energy share in the electricity mix to 40% by 2025.

Currently, fossil fuels – including coal, crude oil, and natural gas – still constitute nearly 90% of Malaysia’s total energy supply.

The exact auction date will be announced during the 3rd Malaysia Carbon Market Forum, scheduled for October 15, 2025.