Energy companies from Malaysia, Singapore and Vietnam have formed an alliance to explore the supply of cross-border renewable energy, with a key focus on offshore wind.
The joint development agreement will explore the export of renewables from Vietnam to Malaysia and Singapore.
Through this agreement, Malaysia as represented by MY Energy Consortium, established by Tenaga Nasional Berhad (TNB) and Petronas, will collaborate with a consortium comprising PetroVietnam Technical Services Corporation (PTSC) and Sembcorp Utilities Pte Ltd, a wholly-owned subsidiary of Singapore-based Sembcorp Industries.
The aim of the initiative is to accelerate grid integration, energy security, and decarbonisation across south-east Asia.
Together, the consortia will focus on unlocking Vietnam’s renewable energy resources, particularly offshore wind power, as a source for clean electricity across borders.
Under the agreement, the consortia will evaluate the feasibility of exporting renewable energy from Vietnam to Malaysia and Singapore via a new subsea cable, wheeled in and through the Peninsular Malaysia National Grid.
MY Energy Consortium members Datuk Ir. Megat Jalaludding Megat Hassan of TNB and Tan Sri Tengku Muhammad Taufik of Petronas issued a joint statement on the alliance.
They said: “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.
“This tripartite partnership is a step forward in advancing transnational green infrastructure, tapping into Vietnam’s renewable energy potential, and delivering stable, low-carbon electricity to communities and businesses.
“It marks a significant milestone in our collective journey towards achieving net zero emissions.”
As a member of ASEAN, Vietnam is advancing its strategic vision to become a regional renewable energy hub. Vietnam’s Prime Minister has underscored offshore wind as a national priority and is steering targeted directives to accelerate the growth of renewable energy.
Meanwhile Singapore’s target is to import around 6GW of low-carbon electricity by 2035, which will be around one-third of the nation’s energy demand. Connecting regional power grids will also promote the development of renewable energy in the region and paves the way in realising the ASEAN Power Grid vision.
Group chief executive of Sembcorp Industries Wong Kim Yin said: “We are pleased to be part of this groundbreaking initiative, which underscores the strength of regional collaboration.
“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. We are committed to support ASEAN’s low-carbon transition through shared infrastructure and strengthened partnerships.”
The formal agreement exchange ceremony (pictured) between MY Energy Consortium, PTSC and Sembcorp was held on the sidelines of the ASEAN Summit in Kuala Lumpur, Malaysia on 26 May.