KUALA LUMPUR (Sept 20): Tenaga Nasional Bhd (KL:TENAGA), or TNB, has inked an agreement with Singapore’s Keppel Electric Pte Ltd to supply up to 100MW of electricity to the island-state.

Separately, the Malaysian utility company also signed a cross-border power trade interconnection agreement with SP Power Assets Ltd (SPPA) to ensure stable electricity transmission between Malaysia and Singapore.

These agreements “support Asean’s broader energy transition, prioritising interconnectivity and grid efficiency as the region faces growing energy demand”, TNB said in a statement.

The 100MW supply agreement, it said, is part of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP).

The agreement, aimed to enhance energy security and sustainability within Asean, utilises existing interconnections, TNB said.

“As a key player in the Asean Power Grid (APG), TNB is committed to advancing energy security and leading the region’s energy transition,” said TNB president and chief executive officer Datuk Megat Jalaluddin Megat Hassan.

“This agreement not only supports cross-border power trade but also reinforces Malaysia’s leadership in regional energy connectivity,” he added.

Malaysia currently has a 1GW interconnection with Singapore, with 500MW of capacity for grid balancing, and 100MW for TNB’s export to Singapore via YTL Power Seraya Pte Ltd, of which an agreement was signed in 2023.

There is also another 100MW previously allocated for supply of hydro-generated power from Laos, but an extension is reportedly halted amid disagreements over the committed volume, as well as the rate of the transmission charges for delivery through Thailand and Malaysia.

Separately, TNB together with SPPA are also exploring the technical feasibility of a second power interconnection facility connecting Peninsular Malaysia and Singapore. Malaysia is looking at up to 2GW capacity for the second interconnection, according to reports.

On the new agreements signed by TNB and the two Singaporean entities, Megat noted that the agreement aligns with Asean’s broader energy objectives while positioning Malaysia as a regional energy hub.

“TNB’s role in the Asean Power Grid (power interconnection across Asean under government-to-government collaboration) supports the region’s energy interconnectivity and multilateral power trade,” TNB said.

“These efforts are crucial as Malaysia becomes a key player in powering data centres and energy-intensive sectors in the region,” it said.