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Malaysia reduces green electricity tariff premium rates up to 80% starting July 1

Malaysia has reduced its green energy tariff premium rates up to 80% starting July 1, in an attempt to diversify the green electricity supply options available to companies so they can meet their ESG obligations.

In a Wednesday statement, the Energy Transition and Water Transformation Ministry announced that premium rates previously set according to user categories would now be combined in one single pricing tier.

Users will pay 5 cents a kilowatt-hour for contracts lasting one year, 4 cents a kWh for agreements lasting two years, and 3 cents a kWh for commitments lasting three years.

Green electricity tariff (GET), a programme to offer renewable energy to Tenaga Nasional Berhad customers who wish to reduce their carbon footprint, was launched in 2021.

The government set a quota for the 2025 GET Programme of at least 6,600 gigawatt-hours, with premium rates as low as 10 cents/kWh for domestic users and non-domestic users of low voltage and medium voltage and 20 cents/kWh for non-domestic users of high voltage and medium voltage.

The Ministry stated that as these new provisions include structural changes and costs implications, users will be able to cancel existing subscriptions until August 31, without penalty.

In response to the demand of data center operators, industrial and commercial users as well as the Ministry itself, the GET GreenPath Programme was launched to provide "tenant accounts" with formal recognition for their green electricity consumption through Renewable Energy Certificates.

TNB will implement this enhanced version of its existing GET program and open subscriptions on August 1.

(source: Reuters)