Kuala Lumpur (VNA) – The Malaysian government hasagreed to establish the Energy Exchange Malaysia (Enegem) to facilitatecross-border sales of green electricity to neighbouring countries.

In a statement issued on April 15,the Energy Transition and Water Transformation Ministry said the settingup of Enegem is in line with Malaysia’s energy transition aspiration andcommitment to support regional energy integration via the ASEAN Power Grid(APG) initiative.

Accordingly, the cross-border sales of energy through theEnegem platform will be implemented based on the latest ‘Guide for Cross-BorderElectricity Sales' (CBES) issued by the Energy Commission.

The statement said the auctioning process for cross-border sales ofgreen electricity shall commence with a 100 megawatts (MW) pilot run, utilisingthe existing interconnection between Singapore and Peninsular Malaysia.

Among the key features of the auction for the purchase of greenelectricity is the pilot scheme which is open to Renewable Energy (RE) Bidderswho hold electricity generation and/or retailer licences for the Singapore electricitymarket, it said.

Auctioning via the Enegem Platform will allowMalaysia to further strengthen its cross-border electricity integrationframework while paving the way for greater renewable energy development andregional cooperation on cross-border energy trading between ASEAN countries,the ministry stressed.

The APG is an initiative to construct aregional power interconnection to connect the region, first on a cross-borderbilateral term, and then gradually expand to a sub-regional basis leading to atotal integrated South-East Asia power grid system./.