Policy Insight - Malaysia: Guide For Cross-Border Electricity Sales (CBES)

Overview

The Guide for Cross-Border Electricity Sales (CBES) serves as a comprehensive guide or framework in advancing ASEAN’s regional energy integration, facilitating power trade between Peninsular Malaysia and neighbouring countries, specifically Singapore and Thailand. The guide establishes two distinct schemes: the CBES Scheme, which governs non-renewable electricity exports, and the CBES RE Scheme, which enables the cross-border trade of renewable energy. Each scheme has its own set of regulatory requirements, infrastructure needs, and market mechanisms in shaping Malaysia’s role as an electricity exporter in the region.

The CBES Scheme regulates electricity exports from Malaysia to Singapore and Thailand through two types of interconnection: existing and dedicated. For Singapore, exports are restricted to non-renewable sources with a maximum transfer capacity of 100MW using the existing interconnection. Meanwhile, exports to Thailand require the development of a dedicated interconnection, as existing grid infrastructure cannot be used.

Meanwhile, the CBES RE Scheme follows a different approach through the Energy Exchange Malaysia (ENEGEM) platform, which facilitates transparent auctions and manages Renewable Energy Certificate (REC) issuance. This scheme allows up to 300MW of renewable energy exports to Singapore through existing interconnections, while exports to Thailand require the development of new transmission lines, which must be approved by relevant authorities and aligned with Thailand’s grid expansion plans.

This edition highlights key updates to the CBES Guide, including revised technical and commercial requirements, settlement mechanisms, and licensing obligations for Power Plant Developers (PPDs). Additionally, it reflects Malaysia’s broader ambitions under the National Energy Transition Roadmap (NETR), positioning the country as a regional energy hub while promoting a competitive and transparent electricity market.

This policy insight explores the impact of both schemes on ASEAN’s evolving energy landscape. Malaysia’s structured approach to cross-border electricity trade provides a strong foundation for regional collaboration. By streamlining regulatory frameworks and enhancing market transparency, these initiatives encourage investment in grid interconnectivity, strengthen energy security, and accelerate Southeast Asia’s transition to a more sustainable energy future.

The data was collected from various reliable sources, including official reports from the government, the private sector, international organisations, and the ASEAN Centre for Energy report.