Malaysia to launch renewable energy trading programme

This aims to raise the share of renewables in the power mix to 20% by 2025.

In order to raise the share of renewables in power generation from 6% currently to at least 20% by 2025, the Sustainable Energy Development Authority (Seda) of Malaysia has introduced a peer-to-peer (P2P) energy trading programme. Under this programme, producers of solar PV power (so-called "prosumers") could sell their excess power generation to other consumers through a grid operator or retailer (state-owned power utility TNB) at a price of MYR 39.05c/kWh (US$9.34c/kWh). TNB would receive a MYR 6.3c/kWh (US$1.5c/kWh) grid fee for operating the trading platform, raising the electricity cost for the consumer to MYR 45.35c/kWh (US$10.85c/kWh), which would remain 11% lower than the current TNB tariff of MYR 50.9c/kWh (US$12.17c/kWh).

Malaysia will launch a pilot run with three prosumers and two consumers with the highest electricity tariff (Tariff B or Low Voltage Commercial Tariff of MYR 50.9c/kWh) participating. In a two-month “alpha run”, the Seda will test the operational capability of energy trading. Financial settlements between prosumers and consumers will be made through their TNB bills in a following six-month “beta run”. If successful, electricity will be traded at competitive prices.

Malaysia is the second Asian country, after Thailand, to launch such a peer-to-peer energy trading project.

This article was originally published by Enerdata.