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The Malaysian government has agreed to set up the Energy Exchange Malaysia (Enegem) to facilitate cross-border trading of green electricity to neighboring countries.
In a statement released on April 15, the Ministry of Energy Transition and Water Transformation announced that the establishment of Enegem aligns with Malaysia's goal of energy transition and its commitment to promoting regional power integration through the ASEAN Power Grid Initiative (APG).
It was mentioned that the implementation of cross-border energy sales via the Enegem platform will adhere to the most recent 'Guide for Cross-Border Electricity Sales (CBES)' issued by the Energy Commission.
Therefore, interested and eligible parties are invited to participate in the inaugural auction for acquiring green electricity from Malaysia's electricity supply system, intended for supply to Singapore through the Enegem.
According to the statement, "The auctioning process for cross-border sales of green electricity shall commence with a 100 MW pilot run, utilizing the existing interconnection between Singapore and Peninsular Malaysia.”
Among the notable features of the auction for acquiring green electricity is the pilot scheme, which is accessible to Renewable Energy Bidders possessing electricity generation and/or retailer licenses for the Singapore Electricity Market.
Renewable Energy Bidders who are interested must register with the Single Buyer to take part in the auction. After completing the qualification process, successful applicants will receive notification to proceed with the auction for purchasing Green Electricity on the specified auction day.
The winning bidders will subsequently enter into Renewable Energy Supply Agreements with the Single Buyer for the sale and purchase of green electricity.
The ministry stresses that conducting auctions through Enegem would enable the nation to further enhance its cross-border electricity integration framework, while also facilitating greater development of renewable energy and fostering regional cooperation in cross-border energy trading among ASEAN countries.
The APG is an initiative to construct a regional power interconnection that aims to connect the region, initially on a cross-border bilateral basis, and then gradually expand to a sub-regional level, ultimately leading to a fully integrated South-East Asia power grid system.
