SINGAPORE, October 26, 2026 — Singapore and Malaysia renewed their energy cooperation memorandum of understanding on Monday, marking a 25-year anniversary of regulatory dialogue and setting a framework for cross-border electricity trading and renewable integration across Southeast Asia.
The Energy Market Authority of Singapore and the Energy Commission of Malaysia signed the renewal on the sidelines of the 19th Singapore International Energy Week. The agreement covers planning and reliability of electricity and piped gas systems, regulation of wholesale and retail electricity markets, implementation of cross-border electricity trading projects, Renewable Energy Certificates, and interconnection capacity. Both regulators will also strengthen collaboration on solar and energy storage systems. In August 2026, EMA granted conditional approval to Sembcorp Utilities and Southern Solar Alliance to import 900 MW of electricity from Johor, generated from solar and battery energy storage systems.
< h2> From Bilateral Dialogue to Regional Blueprint
The memorandum of understanding was first signed in October 2020, replacing an earlier framework that dated back to 2001. Since its inception, the Energy Market Authority and the Energy Commission of Malaysia have held regular bilateral dialogues and technical exchanges. The renewal coincides with both regulators celebrating their 25th anniversaries this year, underscoring a longstanding commitment to deepen regulatory cooperation. The agreement provides a framework for technical collaboration on the planning and reliability of electricity and piped gas systems, as well as the regulation of wholesale and retail electricity markets.
< h2> First Proof of Concept: The 900 MW Johor Deal
In August 2026, the Energy Market Authority granted conditional approval to two companies to import 900 megawatts of electricity from Johor. The conditional approvals were given to Sembcorp Utilities and Southern Solar Alliance for projects supplying power generated from solar and battery energy storage systems in Johor. This project serves as the first major proof of concept for the renewed agreement, demonstrating the technical and regulatory feasibility of cross-border electricity trading between the two nations.
< h2> Renewable Energy Certificates and Interconnection Capacity
The renewed agreement specifically addresses Renewable Energy Certificates and interconnection capacity as tools to unlock a more integrated regional grid. By establishing a framework for RECs, the regulators aim to facilitate greater renewable electricity trade beyond the immediate bilateral relationship. The agreement also covers interconnection capacity, providing the structural basis for future expansion of power flows between Singapore, Malaysia, and potentially other Southeast Asian markets. EMA chief executive Puah Kok Keong stated that the MOU can facilitate greater renewable electricity trade and support investments in renewable energy projects, advancing a more interconnected regional power system.
< h2> Energy Transition Constraints and Shared Resources
Singapore derives 86% of its energy consumption from petroleum and other liquids, 13% from natural gas, and 1% from coal and renewables, according to data from the Energy Information Administration. The city-state’s Green Plan targets 2 gigawatts of solar deployment by 2030 and a 36% improvement in energy efficiency compared to 2005 levels. With limited domestic renewable potential, Singapore has positioned regional cooperation as a necessary component of its energy transition. The case for shared resources is driven by the need to diversify energy mixes and integrate higher shares of solar and storage from neighbouring markets such as Malaysia.
< h2> What Comes Next: Scaling Cross-Border Trade
The regulators have indicated their intention to deepen technical exchanges and knowledge sharing in the coming period. The path to regional interconnectivity will likely depend on the successful scaling of cross-border trade projects like the Johor solar-plus-storage deal. The agreement’s focus on regulatory harmonisation for RECs and interconnection capacity suggests a move beyond simple bilateral ties toward a model that could be replicated across the wider Southeast Asian region.
Energy Transition Constraints and Shared Resources
Singapore derives 86% of its energy consumption from petroleum and other liquids, 13% from natural gas, and 1% from coal and renewables, according to data from the Energy Information Administration. The city-state’s Green Plan targets 2 gigawatts of solar deployment by 2030 and a 36% improvement in energy efficiency compared to 2005 levels. With limited domestic renewable potential, Singapore has positioned regional cooperation as a necessary component of its energy transition. The case for shared resources is driven by the need to diversify energy mixes and integrate higher shares of solar and storage from neighbouring markets such as Malaysia.
According to the Energy in Singapore source, the majority of Singapore’s energy consumption is derived from petroleum and other liquids, accounting for 86% of its total energy use, while natural gas represents 13%, and coal and renewable resources make up the remaining 1%. Singapore has set ambitious targets aimed at enhancing energy efficiency and reducing its environmental footprint. By 2030, the country plans to improve its energy efficiency by 36% compared to levels in 2005. With limited domestic renewable potential, Singapore has positioned regional cooperation as a necessary component of its energy transition. The case for shared resources is driven by the need to diversify energy mixes and integrate higher shares of solar and storage from neighbouring markets such as Malaysia.
Energy Transition Constraints and Shared Resources
According to the Energy in Singapore source, the majority of Singapore’s energy consumption is derived from petroleum and other liquids, accounting for 86% of its total energy use, while natural gas represents 13%, and coal and renewable resources make up the remaining 1%. Singapore has set ambitious targets aimed at enhancing energy efficiency and reducing its environmental footprint. By 2030, the country plans to improve its energy efficiency by 36% compared to levels in 2005. With limited domestic renewable potential, Singapore has positioned regional cooperation as a necessary component of its energy transition. The case for shared resources is driven by the need to diversify energy mixes and integrate higher shares of solar and storage from neighbouring markets such as Malaysia.
Singapore derives 86% of its energy consumption from petroleum and other liquids, 13% from natural gas, and 1% from coal and renewables, according to data from the Energy Information Administration. The city-state’s Green Plan targets 2 gigawatts of solar deployment by 2030 and a 36% improvement in energy efficiency compared to 2005 levels. With limited domestic renewable potential, Singapore has positioned regional cooperation as a necessary component of its energy transition. The case for shared resources is driven by the need to diversify energy mixes and integrate higher shares of solar and storage from neighbouring markets such as Malaysia.
Sources
- Singapore, Malaysia renew agreement to strengthen energy cooperation
- Energy in Singapore
- Singapore, Malaysia deepen cooperation on energy technology – TNGlobal
Photo: Ven Jiun (Greg) Chee / Unsplash (Unsplash License)
