KUALA LUMPUR (Dec 9): Tenaga Nasional Bhd (KL:TENAGA) and Sembcorp Power Pte Ltd have signed an agreement for the supply of 50 megawatts (MW) of renewable energy to Singapore.
The maiden renewable energy supply from Malaysia to the island-state is the result of the bidding process conducted through Energy Exchange Malaysia (Enegem) in June.
This first phase of cross-border renewable energy trading with Singapore will commence this month, the Ministry of Energy Transition and Water Transformation (Petra) said in a statement.
Under the supply agreement, TNB will deliver the electricity to Singapore through Sembcorp Power, utilising existing interconnection between the two countries, Petra said.
The auction via Enegem forms part of Petra's initiative under the Cross-Border Electricity Sales for Renewable Energy Scheme.
In total, the available capacity for the renewable energy exports programme to Singapore is 300MW. Petra had previously told The Edge there were two winners from the June auction, with take-up of 50MW each, without naming them.
Malaysia is venturing into renewable energy exports to capture favourable pricing and foreign exchange gains in neighbouring Singapore, where the government is exploring low-carbon energy sources to meet long-term electricity demand growth.
Returns from the renewable energy exports are expected to support Malaysia's own decarbonisation efforts, including incentivising local adoption of renewable energy, and strengthening the grid to allow higher influx of renewable energy, which fluctuates along with the sources, such as daylight sun.