Energy firms enter new cross-border renewable energy trade in Southeast Asia

Companies from three countries have signed a new deal to export clean power.

Energy companies from Singapore, Malaysia, and Vietnam have inked a new agreement for the cross-border trade of renewable energy, fuelling the rollout of the ASEAN Power Grid.

According to a statement, MY Energy Consortium, an unincorporated consortium established by Tenaga Nasional Berhad (TNB) and Petroliam Nasional Berhad (PETRONAS), will collaborate with a consortium comprising PetroVietnam Technical Services Corporation (PTSC), a member of Vietnam National Industry – Energy Group (Petrovietnam) of Vietnam, and Sembcorp Utilities Pte Ltd, a wholly-owned subsidiary of Singapore-based Sembcorp Industries (Sembcorp).

Under the joint development agreement, the parties will export renewable electricity from Vietnam to Malaysia and Singapore. This will be done through a new subsea cable, supported by the Peninsular Malaysia National Grid, with potential additional firming renewable energy generation and storage.

“Malaysia’s participation in this initiative reflects our strong commitment to the ASEAN Power Grid vision, which aims to strengthen regional energy security through the creation of a power transit hub,” said members of MY Energy Consortium Datuk Ir. Megat Jalaluddin Megat Hassan, President/CEO of TNB and Tan Sri Tengku Muhammad Taufik, President and Group CEO of PETRONAS.

Vietnam, meanwhile, has set offshore wind as a national priority. By joining the collaboration, the country “seeks to catalyse new economic opportunities, stimulate sustainable growth, and generate quality employment, whilst reinforcing ASEAN’s shared ambition for a resilient, low-carbon energy future.”

Singapore has also set a target to import around 6 gigawatts of low-carbon electricity by 2035.

“This agreement highlights Singapore’s strategic role as a demand centre and a key enabler of cross-border power imports to support its decarbonisation goals,” said Wong Kim Yin, Group CEO of Sembcorp Industries.