Malaysia to Sell Electricity to Singapore from 2023
Malaysia will sell electricity to Singapore from 2023. YTL PowerSeraya, Singapore’s local power producer, will be importing it on a commercial basis.
Over a two-year period, 100 megawatts (MW) will be imported by YTL from Malaysia’s TNB Power Generation (a subsidiary of Tenaga Nasional Berhad (TNB)) plant in Pasir Gudang, Johor. Electricity is going to be exported through an interconnector between Singapore and Malaysia.
The import will contribute to approximately 1.5% of Singapore’s peak energy demand. That’s enough to power roughly 144,000 four-room Housing Board flats for an entire year.
An Energy Source of the Future
YTL PowerSeraya was given the importer’s license for a two-year period, starting October 2021. As Singapore transitions toward cleaner energy resources, part of the plan is to tap into regional power grids. Hence this agreement. This is a two-year trial period that will facilitate larger electricity imports to Singapore in the future.
This is the first step toward creating a strong ASEAN power grid. Importing electricity could become a key component of Singapore’s energy mix. Malaysia will sell electricity that is generated from fossil fuels. Currently, only non-renewable energy can be exported into Singapore.
Refining the Details of the Sale
TNB and YTL PowerSeraya will work with Malaysia’s Energy Commission and the Energy Market Authority (EMA) to work out the technical and regulatory arrangements. Once details have been finalised, the agreement will commence. No details have been revealed about the price.
YTL PowerSeraya has a retail arm, Geneco, which is Singapore’s only electricity retailer. It is the only company in the country with experience in cross-border power trade and financial settlements.
A Sector for Every Investor
The energy sector is just one of Malaysia’s many in-demand sectors. A country ripe with opportunity, our Industry Guide offers greater insight into which sectors might be right for you. For more information, get in touch with the 3E Accounting team.