Tenaga Nasional Berhad (TNB) announced a rebrand and upgrade for the Malaysia Green Attribute Trading System (mGATS) system to become a digital marketplace for Renewable Energy Certificates (mREC) that is set for launch in the first quarter of 2024.
Initially introduced as an information hub for renewable energy (RE) certificates four years ago, mGATS is now undergoing a significant shift in its functionality, transitioning into a dynamic digital marketplace for REC, according to the power company.
TNB says that mREC is a market-based instrument certifying ownership of electricity generated from Renewable Energy (RE) sources in Malaysia.
Deputy Prime Minister Datuk Fadillah Yusof emphasised the significance of mGATS as a pioneering digital trading platform aimed at fortifying Malaysia’s existing Green Electricity Tariff (GET) program.
This new trading program empowers environmentally conscious consumers and corporations with Environmental, Social, and Governance (ESG) commitments to offset their carbon footprint from electricity usage.Deputy Prime Minister Datuk Fadillah Yusof
The government encourages more green energy
Speaking at the same event, Natural Resources, Environment and Climate Change (NRECC) Minister Nik Nazmi Nik Ahmad said that the increased production of renewable energy in the power sector aligns with the surging demand for green electricity, particularly from multinational corporations and organizations, including members of the global corporate initiative RE100 committed to 100% renewable electricity.
He emphasised the role of greening the electricity grid in facilitating new green businesses and investment opportunities, and expanding the country’s economic value and underscored the importance of initiatives such as the Net Energy Metering Programme, that enable businesses to access green electricity and meet their ESG and Scope 2 Greenhouse Gas (GHG) emissions commitments.
Moving forward, NRECC in collaboration with TNBX (a wholly-owned subsidiary of TNB), will upgrade the existing mGATS into a full-fledged REC trading platform, which allows the commercial exchange of REC to be undertaken in Malaysia. This shall provide businesses with greater choice in fulfilling their respective ESG commitments.Natural Resources, Environment and Climate Change (NRECC) Minister Nik Nazmi Nik Ahmad
New And improved mgats coming in q1 2024
Meanwhile, TNB President and CEO Datuk Seri Ir. Baharin Din said that the rebranded mGATS signifies a crucial milestone in Malaysia’s journey towards a greener and more sustainable energy future.
This initiative, he said, aligns with the National Energy Transition Roadmap (NETR) targeting a 70% share of renewable energy in Malaysia’s total primary energy supply by 2050.
He added that mGATS will provide substantial benefits to business customers, offering a transparent and user-friendly means to acquire green electricity, especially for those aiming for 100% renewable energy consumption goals.
Once the enhanced mGATS platform is operational in the first quarter of 2024, commercial and industrial entities interested in acquiring mREC for indirect green electricity can participate in the bidding platform. mGATS will evolve over time to better serve our customers in their pursuit of green electricity.TNB President and CEO Datuk Seri Ir. Baharin Din