In the current era of increasingly close global energy cooperation, the Malaysian government recently announced the establishment of an energy exchange to promote cross-border sales of green electricity, with Singapore becoming an important partner of this plan. This move not only marks the further deepening of energy cooperation between the two countries, but also injects new vitality into the development of renewable energy in Southeast Asia.

It is understood that the Malaysian Ministry of Energy Transformation and Public Utilities has officially released a message to the public, stating that it will establish a facility calledThe Energy Exchange Malaysia, also known as the Energy Exchange. The establishment of this exchange aims to sell green energy such as solar power to neighboring countries, including Singapore, through auctions. At present, this plan is in the trial stage, but it has attracted widespread attention from the industry.

The Malaysian government has stated that it will invite interested businesses to purchase green electricity from the national power supply system and supply it to Singapore through the platform of the Energy Exchange. This pilot program will be open to renewable energy operators who hold generation or retail licenses in the Singapore electricity market, providing them with a new market opportunity.

The auction process for cross-border sales of green electricity will fully utilize the existing power grid between Singapore and West Malaysia, and a trial bidding volume of100 megawatts (MW). Interested participants can register and apply to the Malaysian authorities through relevant channels starting from this Tuesday. After strict qualification review, successful applicants will have the opportunity to participate in bidding and sign renewable energy supply agreements with buyers on the auction day.

The Malaysian Ministry of Energy has high hopes for this auction, believing that it will further strengthen the cross-border power integration framework, promote larger scale renewable energy development and cross-border energy trade cooperation among Southeast Asian countries. At the same time, the establishment of the Energy Exchange is also in line with Malaysia's long-term vision for energy transformation, as well as its commitment to support regional power integration through the Asia Pacific Grid Plan.

The Asia Pacific Power Grid PlanSince its signing in 2007, we have been committed to building regional power grid interconnectivity, gradually establishing cross-border bilateral connections, and ultimately achieving a complete ASEAN power grid system. The establishment of the Energy Exchange in Malaysia is undoubtedly an important milestone in this plan, which will effectively promote the integration and development of the regional energy market.

Singapore, as an important partner of Malaysia, has long beenIn 2020, it was announced that it had decided to import electricity from Malaysia to expand the source of electricity supply. This two-year pilot program is not only Singapore's first import of electricity from Malaysia, but also an important attempt at energy cooperation between the two countries. It is expected that this plan will account for 1.5% of Singapore's peak electricity demand, providing strong guarantees for Singapore's energy security.