The cross-border power deal marks a significant step in diversifying Singapore’s energy sources
SINGAPORE: As part of a two-year trial, Singapore will begin importing 100 megawatts (MW) of electricity from Malaysia, marking the first time Malaysia will commercially supply electricity to Singapore. This agreement, announced on January 30, involves a collaboration between YTL PowerSeraya and TNB Genco.
The electricity will be exported via a newly upgraded interconnector, with the supply sourced from TNB Pasir Gudang Energy, a subsidiary of TNB Genco. The imported electricity will meet approximately 1.5% of Singapore’s peak demand, enough to power around 144,000 four-room HDB flats annually.
Both parties will work with Singapore’s Energy Market Authority (EMA) and Malaysia’s Energy Commission to finalise technical and regulatory arrangements under the Electricity Import Framework, with the agreement becoming effective once conditions are met.
The announcement was made official in a ceremony attended by Singapore’s Minister for Manpower Tan See Leng and Malaysia’s Minister for International Trade and Industry Tengku Zafrul Tengku Abdul Aziz.
Strengthening Regional Energy Supply
TNB Genco’s Managing Director, Nor Azman Mufti, emphasised that the agreement is a key step in strengthening cross-border energy supply, paving the way for the eventual creation of a fully interconnected ASEAN power grid. This will also mark TNB Genco’s entry into the Singapore market through cross-border electricity sales.
YTL PowerSeraya has experience in cross-border power trade, having previously traded electricity with TNB in Malaysia. The company’s subsidiary, Geneco, also operates in Singapore’s retail electricity market.
The agreement is part of Singapore’s broader energy diversification strategy, which aims to enhance energy security. In 2021, the EMA selected YTL PowerSeraya for this trial, recognising their capacity to meet the requirements for importing electricity via the existing interconnector. The trial was initially planned for early 2022 but has now been formalised.
CEO of YTL PowerSeraya, John Ng, expressed pride in partnering with TNB Genco to contribute to Singapore’s energy security, stating that this deal is the first step towards a robust ASEAN power grid, with cross-border electricity imports playing a significant role in Singapore’s future energy mix.
This move follows other regional energy diversification efforts, such as the import of 100MW of renewable hydropower from Laos through Thailand and Malaysia, which commenced in June 2022. By 2035, Singapore plans to import up to 4GW of low-carbon electricity, which will account for approximately 30% of the country’s electricity supply.
