Malaysia Launches Monthly Bidding for Renewable Energy Certificates

The journey towards a greener future takes a significant leap forward as the Ministry of Energy Transition and Water Transformation (Petra) announces the open bidding process for renewable energy certificates (RECs) generated in 2024. This pioneering initiative is set to occur every month from the 7th to the 11th, via the Malaysia Green Attribute Trading System (mGATS) platform, ensuring that all offered RECs are efficiently acquired. This opportunity represents a strategic move for businesses aiming to bolster their environmental, social, and governance (ESG) credentials.

Kicking off from October 7th to 11th, the ministry will make available 1,000 GWh of hydro RECs and 100 GWh of solar RECs. This option allows corporate companies to align with global sustainability standards while contributing to Malaysia’s renewable energy ambitions. Petra highlights this endeavor as a vital component in achieving the country’s target of 70% renewable energy capacity in the national electricity supply by 2050.

Tenaga Nasional Bhd, through its subsidiary TNBX Sdn Bhd, has been at the forefront of this transition since the mGATS platform was launched earlier this year on May 8th. This platform revolutionizes how companies obtain their RECs through a transparent bidding procedure. Notably, the mGATS platform, accessible at platform.mgats.com.my, provides comprehensive details on the RECs available, reinforcing the convenience for businesses looking to make a positive environmental impact.

Adhering to the principles of credibility and global acknowledgement, the registration and verification of RECs offered through this initiative are based on benchmarks set by internationally recognised certification bodies such as the ITRACK Foundation. This assurance is crucial for companies committed to meeting the expectations of major reporting frameworks.

Petra firmly believes that opening REC bids will not only support companies in fulfilling their ESG objectives but will also propel the growth of Malaysia’s renewable energy sector. It’s a bold step towards fostering a sustainable energy landscape while fortifying the nation’s energy transition goals.

This innovative approach underscores a pivotal moment in Malaysia’s energy strategy, marrying corporate responsibility with national energy aspirations. As businesses participate in this bidding, they pave the way for a future powered by cleaner, more sustainable energy sources—a vision Petra is confident will be realized through these concerted efforts.