Singapore to Import 100MW of Electricity From Malaysia

Under a two-year trial agreement between YTL PowerSeraya and TNB Genco, Singapore will import 100 megawatts (MW) of electricity from Malaysia.

This is the first time that electricity from Malaysia will be commercially supplied to Singapore.

YTL PowerSeraya announced this on Monday (Jan 30), saying the electricity will be exported via a newly upgraded interconnector.

Before being exported, the electricity will be purchased from TNB Pasir Gudang Energy, a wholly owned special vehicle company by TNB Genco.

This will account for approximately 1.5% of Singapore's peak electricity demand, or enough to power approximately 144,000 four-room HDB flats for a year.

“Both parties will work closely with the Energy Market Authority of Singapore (EMA) and the (Malaysian) Energy Commission to refine all technical settings and regulatory arrangements under the Electricity Import Framework and the agreement will be effective upon fulfilment of conditions precedent,” a joint statement read.

The agreement was signed on Monday by Manpower Minister Tan See Leng and Malaysia's International Trade and Industry Minister Tengku Zafrul Tengku Abdul Aziz.

Nor Azman Mufti, managing director of TNB Genco, said the agreement “is a positive step for the strengthening of cross-border energy supply towards the realisation of a fully interconnected ASEAN power grid”.

“This will mark TNB Genco’s maiden foray into the Singapore market via cross-border electricity sales and we hope this will become the catalyst to capture future projects in this market,” he added.

YTL PowerSeraya is the only Singaporean party with prior experience in cross-border power trade and financial settlements, having traded across the interconnector in 2011 and 2013 to supply electricity to TNB in Malaysia.

Geneco, the company's wholly owned subsidiary, also serves the retail electricity market in Singapore.

In October 2021, EMA announced the appointment of YTL PowerSeraya for a two-year trial to import 100MW of electricity from Peninsular Malaysia.

“YTL PowerSeraya was selected as its proposal was best able to meet EMA’s requirements to trial electricity imports via the existing interconnector,” said the authority.

The move is part of Singapore's plan to strengthen the "regional grid architecture," according to then-Minister for Trade and Industry Chan Chun Sing, who spoke at the start of the Singapore International Energy Week in October 2021.

The trial was originally scheduled to begin in early 2022.

“YTL PowerSeraya, together with YTL Power International, is honoured to work with TNB Genco, a wholly owned subsidiary of TNB, the national electricity utility in Malaysia, to contribute our part in diversifying Singapore’s energy sources and further enhancing the nation’s energy security,” CEO of YTL PowerSeraya John Ng said.

“We believe that this is the first step in our vision of a strong ASEAN power grid, where electricity imports may eventually form a key part of Singapore’s energy mix.”

After a two-year power purchase agreement was signed between Keppel Electric and Laos' state-owned Electricite du Laos, Singapore began importing up to 100MW of renewable hydropower from Laos via Thailand and Malaysia in June (EDL).

Singapore plans to import up to four gigatonnes (GW) of low-carbon electricity by 2035, accounting for roughly 30% of the country's electricity supply in that year.