The energy landscape in Southeast Asia is buzzing with a new, ambitious venture that could reshape the region’s power dynamics and accelerate the transition to renewable energy. A consortium of energy giants from Malaysia, Singapore, and Vietnam has joined forces to explore the feasibility of exporting renewable electricity from Vietnam to its neighbors. This initiative is not just about powering homes and businesses; it’s about forging a new path towards regional energy security and sustainability.
At the heart of this consortium are Malaysia’s MY Energy Consortium, a powerhouse collaboration between Tenaga Nasional Berhad and Petroliam Nasional Berhad, Vietnam’s PetroVietnam Technical Services Corporation (PTSC), and Singapore’s Sembcorp Utilities. Together, they aim to harness Vietnam’s burgeoning offshore wind power, transforming the country into a renewable energy hub and a key player in the ASEAN regional power grid.
Vietnam’s strategic position and aggressive clean energy development make it an ideal candidate for this role. The country is prioritizing offshore wind, with plans to install up to 6 GW of offshore wind capacity by 2030. This initiative aligns perfectly with the ASEAN Power Grid vision, which seeks to strengthen regional energy security through a power transit hub.
The consortium’s plan involves assessing the feasibility of a new subsea cable system to export this renewable energy, integrating it through the Peninsular Malaysia National Grid. This isn’t just about transmission; it’s about innovation. The consortium is also exploring additional renewable energy generation and storage solutions, hinting at a future where energy is not just transmitted but also optimized and stored for peak demand periods.
Malaysia, currently chairing the ASEAN Summit, is playing a pivotal role in promoting sustainable and resilient economic growth in the region. The country’s participation in this initiative reflects its strong commitment to the ASEAN Power Grid vision. As Datuk Ir. Megat Jalaluddin Megat Hassan, president and CEO of Tenaga Nasional Berhad, and Tan Sri Tengku Muhammad Taufik, president and Group CEO of PETRONAS, stated, “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.”
Singapore, with its goal to import 6 GW of low-carbon electricity by 2035, is another driving force behind this push for regional grid connectivity. The agreement sets the stage for a scalable model of cross-border renewable energy cooperation in Southeast Asia, a model that could inspire similar initiatives across the globe.
PTSC’s president and CEO, Tran Ho Bac, highlighted the significance of this agreement for Vietnam’s energy transition strategies. “This agreement highlights the role of PTSC in particular, and PVN as a whole, in advancing national energy transition strategies. We expect its effective implementation will mark a significant milestone — a starting point for renewable energy investment in Vietnam.”
The consortium’s plans don’t stop at feasibility studies. They are actively seeking approvals from national authorities to advance the project, demonstrating their commitment and confidence in this venture. This initiative is more than just a business deal; it’s a testament to the power of regional cooperation in driving sustainable development.
As the consortium navigates the complexities of cross-border energy trade, they are also setting a precedent for future projects. They are challenging norms, sparking debate, and pushing the boundaries of what’s possible in the energy sector. This is not just about powering the present; it’s about energizing the future. And in doing so, they are not just shaping the energy sector; they are shaping the future of Southeast Asia.