Energy Exchange Malaysia (ENEGEM): Pioneering Cross-Border Renewable Energy Trade in Southeast Asia

Energy Exchange Malaysia (ENEGEM) is a strategic platform established by the Malaysian government to facilitate cross-border trading of renewable electricity, aligning with the ASEAN Power Grid (APG) initiative and Malaysia's energy transition goals. Launched in 2024, ENEGEM enables the sale of green electricity to neighboring countries through a competitive bidding mechanism, marking a significant step in regional energy integration.

Overview and Objectives

ENEGEM was developed under the Cross-Border Electricity Sales for Renewable Energy (CBES RE) scheme, approved by the Malaysian government in October 2023. Managed by Single Buyer, which oversees Malaysia's electricity procurement and planning; ENEGEM serves as a marketplace for the sale of renewable electricity, utilizing a bidding system to ensure transparency and competitiveness. The platform aims to support Malaysia's commitment to energy sustainability and regional cooperation (Single Buyer, 2024). 

Pilot Phase and Implementation

The inaugural auction conducted by ENEGEM in June 2024 marked the beginning of Malaysia's cross-border Renewable Energy (RE) trade. Tenaga Nasional Berhad (TNB), Malaysia's primary electricity utility, secured an agreement to export 50 megawatts (MW) of renewable electricity to Singapore's Sembcorp Power Pte Ltd. This supply, sourced from Malaysia's solar and hydro generation, commenced in December 2024, utilizing the existing interconnection between the two countries (TNB, 2024). The pilot project is part of a broader plan to export up to 300 MW of Renewable Electricity (RE) capacity to Singapore, reinforcing Malaysia's role in regional energy sustainability (The Malaysian Reserve, 2024).​

Strategic Significance

ENEGEM's establishment signifies Malaysia's proactive approach to energy transition and regional collaboration. By facilitating the export of Renewable Electricity (RE), Malaysia not only diversifies its energy portfolio but also contributes to the reduction of fossil fuel dependency in the region through the ASEAN Power Grid initiative. ENERGEM aligns with Malaysia's National Energy Transition Roadmap (NETR), which aims to increase the grid's flexibility by 20% by 2035, enhancing the integration of RE sources and supporting the country's target of achieving 70% RE in its installed power capacity by 2050 (Astro Awani, 2024). 

Challenges and Future Outlook

While ENEGEM represents a significant advancement, its long-term sustainability depends on the continuous growth of Renewable Energy (RE) capacity in Malaysia. As of May 2024, Malaysia's total RE capacity stood at approximately 4,018 MW, with solar power being the dominant source. To ensure the viability of ENEGEM, Malaysia must accelerate the development of RE projects and establish robust regulatory frameworks for cross-border energy trade (Asian Power, 2024).​ 

ENEGEM embodies Malaysia's commitment to sustainable energy and regional integration. By enabling cross-border renewable electricity (RE) trade, the platform not only supports Malaysia's energy transition goals but also contributes to the broader ASEAN objective of a connected and sustainable energy future.​

References

• Single Buyer. (2024). ENEGEM Introduction. Retrieved from https://www.singlebuyer.com.my/enegem.php

• Tenaga Nasional Berhad (TNB). (2024). TNB and Sembcorp Power Partner to Advance ASEAN’s Renewable Energy Integration. Retrieved from https://www.tnb.com.my/announcements/tnb-sembcorp-power-partner-to-advance-aseans-renewable-energy-integration

• The Malaysian Reserve. (2024). Malaysia delivers first 50MW of green energy to Singapore. Retrieved from https://themalaysianreserve.com/2024/12/09/malaysia-delivers-first-50mw-of-green-energy-to-singapore/

• Astro Awani. (2024). Malaysia to launch cross-border re-auction for Singapore via ENEGEM by year-end - DPM Fadillah. Retrieved from https://international.astroawani.com/malaysia-news/malaysia-launch-cross-border-re-auction-singapore-enegem-year-end-dpm-fadillah-496118

• Asian Power. (2024). Sustainability of Malaysia’s ENEGEM hinges on renewable energy growth. Retrieved from https://asian-power.com/ipp/exclusive/sustainability-malaysias-enegem-hinges-renewable-energy-growth

• Energy Commission. (2024, April 15). Energy Exchange Malaysia (ENEGEM) established for cross-border sales of green electricity to Singapore [Media statement]. https://www.st.gov.my/contents/files/highlight/nocategory/2024-04-15/MS_Bil.13_2024_ENERGY%20EXCHANGE%20MALAYSIA%20(ENEGEM)%20ESTABLISED%20FOR%20CROSS-BORDER%20SALES%20OF%20GREEN%20ELECTRICITY%20TO%20SINGAPORE.pdf​

• The Edge Malaysia. (2024, December 9). Malaysia delivers first 50MW of green energy to Singapore. https://theedgemalaysia.com/node/707880​

• The Star. (2024, April 15). Malaysia sets up Energy Exchange Malaysia for cross-border sales of green electricity. https://www.thestar.com.my/news/nation/2024/04/15/malaysia-sets-up-energy-exchange-malaysia-for-cross-border-sales-of-green-electricity