Legal Updates for May 2024

Energy Exchange Malaysia and Cross-Border Electricity Sales of Renewable Energy

The Guide for Cross-Border Electricity Sales ("CBES Guide") was first issued by the Energy Commission ("EC") on 31 December 2020 to facilitate the cross-border electricity sales between Peninsular Malaysia and Singapore or Thailand. The CBES Guide was revised on 25 October 2021, imposing prohibition of export of renewable energy ("RE") to Singapore. 

In the National Energy Transition Roadmap issued in July and August 2023, the Government of Malaysia identified the establishment of RE exchange hub to enable cross-border RE trading as one of the key initiatives under the energy transition lever of RE. However, there had been little development on the RE exchange framework since then. 

The much-anticipated development was finally announced by EC via the third edition of the CBES Guide on 15 April 2024, which now contains a separate chapter addressing the mechanism of the cross-border renewable energy sales from Peninsular Malaysia to Singapore or Thailand (CBES RE Scheme).