Sembcorp Industries - Maybank Research 2024-12-10: Asean Power Integration ~ Switching On Malaysian Renewable Power

• Sembcorp (SGX:U96) has agreed to import 50MW of renewable energy from Tenaga of Malaysia to Singapore issued with Renewable Energy Certificates (RECs) using existing infrastructure. The two-year agreement starts this month.
• - Read this at SGinvestors.io -

Pilot import of 50MW renewable energy with RECs

• The deal is part of Malaysia’s inaugural pilot supply of green electricity for cross-border energy trading via the Energy Exchange Malaysia platform. It will also be the first-ever renewable energy import with Renewable Energy Certificates (RECs) into Singapore.
• The RECs provide proof of origin of renewable energy generation, ensuring that the energy is sustainably sourced. Total interconnection capacity between Peninsular Malaysia and Singapore stands at 1GW with 300MW allocated for cross-border energy sales for renewable energy between the two countries.
• - Read this at SGinvestors.io -

REC framework work-in-progress

• Singapore USEP ( Uniform Singapore Energy Price ) for last month averaged S$129.4/MWh while Malaysia’s SMP (System Marginal Price) averaged MYR178.9/MWh. Currently, for Renewable Energy/Scope-2 offsets, companies in Malaysia purchase unbundled RECs or sign separate power purchase agreements or pay additional green electricity tariffs; while companies in Singapore rely on RECs.
• Development of a credible cross-border REC framework is a work in progress.

Securing revenue sources

• Read more at SGinvestors.io.

Krishna Guha Maybank Research | https://www.maybank.com/ 2024-12-10 SGinvestors.io

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