top of page

ALECA BLOG

Search

Malaysia-Thailand Energy Trade



Thailand and Malaysia electricity statistics for perspective (ref: IEA 2022–2023):

  • TH total electrical energy consumption ~ 213,144 GWh per year.

  • TH Renewable Energy (RE) consumption ~ 41,318 GWh, 19.4% of total.

  • TH electrical energy generation from fossil fuels ~ 80.6%.

  • MY Renewable Energy (RE) Export to TH ~ 2,700 GWh per year (estimated from cross-border trade data).

  • MY total electrical energy local consumption ~ 173,000 GWh vs total MY electrical energy generation ~ 187,297 GWh per year.

  • MY Renewable Energy (RE) generation ~ 34,520 GWh, 18.4% of total.

  • MY RE export to TH ~2,700 GWh, 7.8% of total RE generated in MY.


Malaysia-Thailand Key Energy Trade Statistics

  • Malaysia–Thailand Electricity Trade Capacity: Malaysia exports electricity to Thailand through a dedicated interconnection, as stipulated by the Cross-Border Electricity Sales (CBES) guidelines (IEA, 2024).

  • Thailand’s Renewable Energy Target: Thailand aims to increase its renewable energy share from 20% in 2023 to 51% by 2037. ​

  • Thailand’s Power Development Plan (PDP) 2018–2037: The plan sets a goal of adding 56.431 GW of new power capacity, with renewable energy projects accounting for approximately 37% (20.766 GW). ​ 


Malaysia and Thailand have cultivated a robust energy partnership, focusing on cross-border electricity trade to enhance energy security, economic growth, and the transition to renewable energy sources. This collaboration is pivotal in achieving the ASEAN Power Grid (APG) initiative, which aims to integrate the region's power systems for optimal resource utilization.​


Cross-Border Electricity Trade Framework

The Cross-Border Electricity Sales (CBES) framework governs the electricity trade between Malaysia and Thailand. Under this framework, electricity exports from Malaysia to Thailand require the development of a dedicated interconnection, as existing grid infrastructure cannot be utilized for such purposes. ​In April 2024, Malaysia announced the establishment of the Energy Exchange Malaysia (ENEGEM) to facilitate cross-border sales of green electricity to neighboring countries, including Thailand. ​


Thailand's Renewable Energy Ambitions

Thailand's Power Development Plan (PDP) 2018–2037 outlines the country's commitment to increasing renewable energy capacity. The plan aims to add 56.431 GW of new power capacity, with renewable energy projects accounting for approximately 37% (20.766 GW) of the new additions. ​In 2023, Thailand's Renewable Energy (RE) consumption was 17.47% of the total final energy consumption. The country aims to increase this share to 30% by 2037. ​


Malaysia's Role in Regional Energy Integration

Malaysia's strategic location and energy infrastructure position it as a key player in regional energy integration. The country's commitment to Renewable Energy (RE) and the development of dedicated interconnections facilitate the export of electricity to neighboring countries, including Thailand.​ The establishment of ENEGEM (https://www.alecasolutions.com/post/energy-exchange-malaysia-enegem-pioneering-cross-border-renewable-energy-trade-in-southeast-asia) demonstrates Malaysia's proactive approach to enabling cross-border electricity trade, aligning with the broader goals of the ASEAN Power Grid initiative. ​


Economic and Environmental Implications

Cross-border electricity trade between Malaysia and Thailand offers several economic and environmental benefits:​

  • Economic Growth: Electricity exports contribute to Malaysia's GDP and support Thailand's energy needs, fostering economic interdependence.​

  • Energy Security: Diversifying energy sources through cross-border trade enhances energy security for both countries.​

  • Environmental Sustainability: The focus on renewable energy in cross-border trade supports environmental sustainability and aligns with global climate goals.​

  • Energy Efficiency: Limit over-capitalization of other states by leveraging extra capacity within the regional infrastructure. 


The Malaysia–Thailand energy trade exemplifies regional cooperation in achieving energy security, economic growth, environmental sustainability and energy efficiency. Through frameworks like CBES and initiatives like ENEGEM, both countries are paving the way for a more integrated and sustainable energy future in Southeast Asia.





References

 
 

SERVICE APP 

ALECA, now on your phone!

Get ALECA

Our App will be live soon!

bottom of page