Vietnam To Export Clean Electricity To Malaysia & Singapore: A New Era Of Green Power

On the afternoon of May 26, in Kuala Lumpur, Malaysia, under the witness of Prime Minister Pham Minh Chinh, Malaysian Prime Minister Anwar Ibrahim, and Singaporean Prime Minister Lawrence Wong, leading energy corporations from the three nations officially exchanged cooperation agreements for the development of the project to export clean electricity from Vietnam to Malaysia and Singapore.

Tripartite Collaboration Kicks Off, Realizing The ASEAN Power Grid

This agreement signifies a significant starting point, affirming the joint commitment of Vietnam, Malaysia, and Singapore to promote cross-border clean electricity trade. This is a meaningful milestone, demonstrating a shared determination to realize the vision of the ASEAN Power Grid (APG), enhancing regional energy connectivity towards a more sustainable and flexible future.

Under the agreement, the Malaysia Energy Consortium (MYEC), comprising Tenaga Nasional Berhad (TNB) and Petroliam Nasional Berhad (PETRONAS), will collaborate with PetroVietnam Technical Services Corporation (PTSC), a member of Petrovietnam, and Sembcorp Utilities Pte Ltd (Singapore). The primary goal is to harness Vietnam’s abundant renewable energy potential, especially offshore wind power, to produce and export clean electricity across borders.

The parties will jointly study the feasibility of exporting clean electricity from Vietnam to Malaysia and Singapore via an undersea cable, connecting to Peninsular Malaysia’s national grid. Concurrently, the project will also consider the possibility of supplementing power sources and storage systems to ensure the stability of the entire system. The project development process will involve close coordination with relevant national authorities, progressively completing necessary approval procedures.

Unlocking A Potential Renewable Energy Cooperation Model

This tripartite agreement is a crucial step in developing cross-border green infrastructure, maximizing Vietnam’s renewable energy potential. The project not only aims to establish a scalable cross-border renewable energy cooperation model in Southeast Asia but also positions the region as a global model for decarbonization and energy transition based on collaboration.

As an active ASEAN member, Vietnam is promoting a strategic vision to become the region’s renewable energy hub. With a strong commitment to developing clean energy, reducing emissions, and meeting the growing energy demand in Southeast Asia, this cooperation will open new economic opportunities, foster green growth, create high-quality jobs, and strengthen ASEAN’s shared commitment to a sustainable, low-emission energy ecosystem.

ASEAN’S Experience In Cross-Border Clean Energy Trading

Cross-border clean energy trading is not new to ASEAN nations. Previously, numerous significant clean energy-related agreements have been signed to ensure energy security for the region:

• Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP): This is a pioneering multilateral power trade project and a model for the entire region.
  
  
  • Phase 1 (June 2022 – June 2024): Successfully traded 100 MW of electricity (primarily hydropower) from Laos to Singapore via the Thai and Malaysian grid systems, demonstrating the feasibility of multi-country power trading.
  • Phase 2 (starting September 2024): The power trading capacity will double to 200 MW, with Malaysia joining as a power provider, transforming the project into a multi-directional power trade model.
• Malaysia-Singapore Renewable Energy Trade: December 2024 marked the first time renewable energy from Malaysia was traded cross-border to Singapore. Sembcorp (Singapore) acquired 50 MW of green electricity (from hydropower and solar power) from Malaysia through a competitive tender, paving the way for other bilateral renewable energy trade activities.
  
  

Due to limited domestic renewable resources, Singapore is the most proactive nation in promoting clean energy imports. In addition to projects with Laos, Malaysia, and Vietnam, Singapore has signed numerous Memoranda of Understanding (MOUs) and cooperation agreements with Indonesia (to import 2 GW of low-carbon electricity) and Cambodia (to study plans to import 1 GW of renewable energy).

Renewable energy trading is guided by the ASEAN Plan of Action for Energy Cooperation (APAEC), currently in Phase 2 (2021-2025). Member states are discussing plans for the post-2025 period, focusing on new solutions for energy transition.

To realize the vision of the ASEAN Power Grid (APG), experts and policymakers recognize that the region needs to establish a regional energy institution to coordinate and standardize grid regulations, technical standards, build transparent transmission pricing mechanisms, and develop a Renewable Energy Certificates (RECs) market. These are key factors to facilitate electricity transmission through third countries and transparently recognize cross-border clean energy sources.