REC Framework to be developed for cross-border electricity trade between Singapore and Malaysia

The Governments of Singapore and Malaysia have announced a joint study to create a framework recognising Renewable Energy Certificates (REC) in cross-border electricity trade. This initiative follows the commencement of a two-year agreement by Sembcorp Power Pte Ltd to import 50 MW of renewable energy from Malaysia’s Tenaga Nasional Berhad under the ENEGEM project, which began on December 13, 2024.

The ENEGEM project marks Singapore’s first renewable power import initiative coupled with RECs, with 28,000 MWh of electricity traded to date. Singapore and Malaysia aim to expand interconnector capacity through a feasibility study by SP Group and TNB, enabling larger-scale power trade and boosting renewable energy investments in the region.