Paving the Way for Energy Collaboration
Singapore will begin importing 100 megawatts (MW) of electricity from Malaysia as part of a groundbreaking two-year trial, following a joint agreement between YTL PowerSeraya and TNB Genco. This initiative marks the first time electricity will be commercially supplied from Malaysia to Singapore.
The announcement, made on January 30, highlights that the electricity will be transmitted through a newly upgraded interconnector. The initial purchase will come from TNB Pasir Gudang Energy, a wholly owned subsidiary of TNB Genco, before being exported to Singapore. This import will account for approximately 1.5% of Singapore’s peak electricity demand, enough to power around 144,000 four-room HDB flats annually.
Both YTL PowerSeraya and TNB Genco will collaborate closely with the Energy Market Authority of Singapore (EMA) and the Malaysian Energy Commission to refine the technical settings and regulatory arrangements within the Electricity Import Framework. The agreement will be activated once specific conditions are met.
Nor Azman Mufti, managing director of TNB Genco, noted that this agreement signifies a significant advancement in cross-border energy supply, contributing to the vision of a fully interconnected ASEAN power grid. He expressed optimism that this partnership will serve as a catalyst for future projects within the Singapore market.
YTL PowerSeraya is uniquely positioned in Singapore due to its previous experience in cross-border electricity trading, having successfully supplied power to TNB in Malaysia in both 2011 and 2013. Additionally, its wholly-owned subsidiary Geneco actively participates in Singapore’s retail electricity market.
The EMA appointed YTL PowerSeraya for this two-year trial in October 2021, allowing for the import of 100MW of electricity from Peninsular Malaysia. This decision was based on YTL PowerSeraya’s ability to meet the EMA’s requirements for the trial via the existing interconnector.
This initiative aligns with Singapore’s efforts to enhance the regional grid architecture, a commitment emphasized by Minister for Trade and Industry Chan Chun Sing during the Singapore International Energy Week in October 2021. The trial was initially expected to launch in early 2022 and signifies a vital step in diversifying Singapore’s energy sources while enhancing energy security.
John Ng, CEO of YTL PowerSeraya, remarked, “We are excited to collaborate with TNB Genco, Malaysia’s national electricity utility, to diversify Singapore’s energy supply.” He is hopeful that this agreement represents the beginning of a strong ASEAN power grid, where electricity imports will play a crucial role in Singapore’s energy strategy.
Addressing inquiries about the potential for a regional electricity market in the future, YTL PowerSeraya pointed out the increasing interest in energy diversification among neighboring countries. This sentiment underscores a collective aim for a more secure and sustainable future through the ASEAN power grid.
Additionally, in June of the previous year, Singapore commenced the import of up to 100MW of renewable hydropower from Laos via Thailand and Malaysia, following a power purchase agreement with Electricite du Laos (EDL), Laos’ state-owned electricity provider. Looking ahead, Singapore aims to import up to four gigawatts (GW) of low-carbon electricity by 2035, which is projected to comprise about 30% of the nation’s electricity supply by that time.
