Malaysia has taken a significant step in promoting cross-border renewable energy (RE) trade with the launch of the Energy Exchange Malaysia (ENEGEM), following updates to the Guide for Cross-Border Electricity Sales (CBES Guide). The revised guide, issued by the Energy Commission on April 15, 2024, introduces a detailed framework for the cross-border sales of renewable energy from Peninsular Malaysia to Singapore or Thailand.
ENEGEM will operate under the third edition of the CBES Guide, serving as a marketplace to facilitate the sale of green electricity through a bidding process managed by Single Buyer. This entity is responsible for electricity planning and procurement in Peninsular Malaysia, and will oversee all operations related to the CBES Renewable Energy Scheme (CBES RE Scheme). This includes the auction process, scheduling, settlement, and the verification and redemption of renewable energy certificates (RECs).
The initiative will utilize existing electrical interconnections with Singapore and Thailand, allocating up to 300 megawatts (MW) with a capacity dedicated for Singapore and available capacity for Thailand. The energy sold will be physically delivered along with associated RECs, sourced from approved renewable sources like solar and hydro plants.
To oversee the implementation, the Ministry of Energy Transition and Water Transformation (PETRA) has established an Exchange Committee consisting of various stakeholders. This committee will handle endorsements, approvals, and dispute resolutions related to the auction exercises.
A pilot auction is set for an initial offering of 100MW dedicated to Singapore, targeting bidders licensed in Singapore’s electricity market. Registration for ENEGEM participants opens on May 6, 2024. This initiative by Malaysia aims to boost regional energy cooperation and contribute to the country’s energy transition goals, aligning with ASEAN’s broader objectives for sustainable energy integration.
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