Malaysia launches green electricity tariff

Out-Law News | 05 Dec 2021 | 1:29 pm | 1 min. read

Domestic and industrial power customers in Malaysia will be able to buy electricity generated by renewable sources.

Malaysia’s energy and natural resources ministry has launched the green electricity tariff (GET) programme which will offer a total of 4500 gigawatts hours (GWh) of electricity from renewables for purchase. GET customers will be charged an extra US$0.087 for each kWh of renewable energy purchased.

Under the programme, from 1 January 2022, the country’s household and industrial users will be able to swich to the use of electricity supply from renewables generated from solar and hydro power plants.

Renewables expert William Stroll at Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, said: “The speed of takeup of this allocation will give a good indication as to whether consumers in Malaysia are willing to spend more to ensure that the power they consume is from green sources. What we have seen in other jurisdictions is strong demand from corporate power consumers, particularly data centres and digital information companies, for verifiable green power.” 

“In the absence of off-site PPAs, where the corporate enters into a long-term power offtake with a producer who is not directly connected to the end user but must use the national power grid, this provides the best opportunity for these corporates to satisfy their renewable energy needs,” he said.

Applications to subscribe for electricity supplies under the GET will be open from 1 December. Customers who are interested can apply on the website of the state-owned utility company Tenaga Nasional Berhad (TNB) or contact the nearest TNB store, according to a local report.

The proceeds from GET sales will be used to support the implementation of the Malaysia’s renewable energy agenda and initiatives, according to the report.

Nine companies have already submitted applications while four government agencies have also committed to procuring 100% of their electricity requirement from GET. These are the energy ministry, energy commission, sustainable energy development authority Malaysia (SEDA), and MyPOWER Corp.