The mechanics of green energy tariff in Malaysia


It is imperative for organisations to align their actions with their ESG reporting guidelines, and chosen reporting framework, when utilising unbundled RECs.

IN the pursuit of a greener and more sustainable Malaysia, it is crucial to understand the mechanics of green energy and how it contributes towards a cleaner environment.

To promote a comprehensive adoption of green energy, there are special certificates called renewable energy certificates (RECs) which verify and authenticate that a certain amount of green energy has been produced in achieving the desired results.Tenaga Nasional Bhd (TNB), via its subsidiary TNBX Sdn Bhd, introduced the groundbreaking RECs programme in 2019. The certificates were obtained from the newly commissioned large-scale solar (LSS) 1 and 2 schemes, where the environmental attributes were pledged to TNB, as the off taker, in their power purchase agreement (PPA).

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