This follows their supply agreement for the importation of 50 MW of renewables to the city-state.

Singapore and Malaysia are set to conduct a joint study to formulate a framework that will recognise Renewable Energy Certificates (REC) associated with cross-border electricity trade.

In a joint statement, Singapore's Ministry of Trade and Industry, and the Energy Market Authority said the framework is expected to fuel demand for cross-border electricity trading projects. This is then expected to boost investment to support the long-term viability of renewable energy projects in the region.

Last month, Sembcorp Power Pte Ltd signed a supply agreement to import 50 megawatts of renewable electricity from Malaysia's Tenaga Nasional Berhad (TNB) to Singapore for two years. The deal, which is under the Energy Exchange Malaysia (ENEGEM) project, commenced on 13 December 2024.

The ENEGEM project is the first power import initiative into Singapore where renewable power is coupled with REC. To date, almost 28,000 megawatt-hours of electricity has been traded under the programme.

Singapore said these initiatives underscore the positive momentum in expanding cross-border electricity trade, as well as the efforts of both countries to fully utilise the existing interconnector.

To enable longer-term and large-scale bilateral and regional power trade, SP Group and TNB are undertaking a joint feasibility study to expand interconnector capacity and infrastructure between Singapore and Malaysia.