Singapore, Malaysia exploring renewable energy certificates framework for cross-border electricity trade
Singapore’s Singapore Power and Malaysia’s Tenaga Nasional are also considering expanding interconnector capacity and infrastructure between both countries
[PUTRAJAYA] Singapore and Malaysia will look into establishing a credible framework to recognise renewable energy certificates (RECs) associated with cross-border electricity trade.
The development of a credible cross-border REC framework is expected to catalyse demand for cross-border electricity trading projects, said the Ministry of Trade and Industry (MTI) and the Energy Market Authority (EMA) in a joint statement on Tuesday (Jan 7).
“(This) will in turn drive investment to support the long-term viability of renewable projects in the region,” they added.
Separately, MTI and EMA gave updates on the agreement between Singapore’s licensed electricity importer, Sembcorp Power, and Malaysian government-owned integrated power utility company Tenaga Nasional (TNB) to supply renewable energy to Singapore.
Under the supply agreement, TNB will deliver the electricity to Singapore via Sembcorp Power, using the existing infrastructure between the two countries.
Renewable energy flow into Singapore from Malaysia had started since Dec 13 last year, said MTI and EMA.
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This agreement was the result of a bidding process in June through the Energy Exchange Malaysia pilot project. To date, around 15,000 megawatt-hours of electricity have been traded under the pilot. (see *Amendment note)
MTI and EMA said that both initiatives “demonstrate positive momentum in the expansion of cross-border electricity trade between Singapore and Malaysia, and the efforts of both countries to maximise the use of the existing interconnector”.
To enable longer-term and large-scale bilateral and regional power trade, Singapore Power and TNB will also undertake a joint feasibility study to expand interconnector capacity and infrastructure between Singapore and Malaysia.
These initiatives are part of efforts by both countries to deepen collaboration in the green economy and sustainability. Prime Minister Lawrence Wong told the local media in an interview on Tuesday that these are emerging areas that Singapore wants to pursue with Malaysia.
Earlier that day, the two countries exchanged two memorandums of understanding (MOUs) on the green economy. These were among the six other agreements exchanged on Tuesday.
One agreement, on cross-border carbon capture and storage, will enable both sides to share best practices and information, and facilitate industry-led research projects where relevant.
Another, on carbon credit cooperation, states that both countries agree to work towards a legally binding implementation agreement to establish a bilateral framework for the generation and international transfer of carbon credits.
The implementation agreement will enable the development of carbon credit projects that unlock additional mitigation potential, promote sustainable development and deliver benefits to local communities, said MTI in a separate statement.
*Amendment note: A previous version of this story said almost 28,000 megawatt-hours of electricity has been traded under the Energy Exchange Malaysia pilot. EMA has clarified that around 15,000 megawatt-hours of electricity has been traded.
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