Malaysia’s green electricity tariff premium rates cut by up to 80pc beginning July 1

KUALA LUMPUR, July 2 — Malaysia has cut its green electricity tariff premium rates by up to 80 per cent beginning July 1 in an effort to diversify its green electricity supply access options for companies to meet their ESG commitments.

The premium rates that were previously set based on user categories will now be combined into a single tier of pricing, the Energy Transition and Water Transformation Ministry said in a statement on Wednesday.

All users will now pay 5 cents per kilowatt hour for one-year contracts, 4 cents per kWh for two-year agreements, and 3 cents per kWh for three-year commitments.

The green electricity tariff (GET) programme was introduced in 2021, offering renewable power to customers of state-run utility firm Tenaga Nasional Berhad (TNB) seeking to reduce their carbon footprint.

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

As these new provisions involve structural changes and cost implications, the Ministry said that users will have the option to terminate existing subscriptions without penalty until August 31.

The Ministry added that in response to demand from data centre operators as well as industrial and commercial users, they have also launched the GET GreenPath Programme to address the need for “tenant accounts” to receive formal recognition of their green electricity usage through Renewable Energy Certificates.

This enhanced version of the existing GET programme will be implemented by TNB and opened for subscription on August 1. — Reuters