The Government of Malaysia has announced that it will allow exports of only non-renewable energy to Singapore, and that power sales to the country through self-developed transmission and interconnection facilities will be prohibited.

The government has agreed to revise the Energy Commission’s (ST) Guide for Cross-Border Electricity Sales in order to broaden the scope of its authority over energy and power sources. Over a two-year trial period, the government has also agreed to set the wheeling charges for exporting electricity to Singapore at USD0.0228 per kWh.

This decision is expected to free up Malaysia’s capabilities to increase solar generation capacity within the national grid system. The move will also allow the government to grant larger solar quotas to Malaysia-based renewable energy (RE) producers.