Sarawak Energy partners with Bursa Carbon Exchange for inaugural hydropower renewable energy certificate auction

Commissioned in 2014, the 944MW Murum HEP includes an ecological feature designed to maintain water flow along the river stretch between the dam and the powerhouse.

By DayakDaily Team

KUCHING, July 9: A landmark auction for Hydropower Renewable Energy Certificates (RECs), hosted online by Bursa Malaysia Berhad’s subsidiary, Bursa Carbon Exchange (BCX), features the purchase of 268,800 HRECv24 Contracts sourced from Sarawak Energy’s Murum Hydroelectric Plant (HEP) by 15 diverse industry buyers.

The success of the inaugural auction of the Hydropower Renewable Energy Certificates for vintage year 2024 (HRECv24) on June 25 paved the way for more such initiatives and products in the future.

Sarawak Energy Group chief executive officer Datuk Sharbini Suhaili said the company is pleased with the outcomes of the inaugural auction, made possible through its strategic Memorandum of Collaboration with BCX, signed at the United Nations Climate Change Conference (COP28) in Dubai.

“This collaboration underscores our commitment to sustainability and our role in shaping a resilient energy future.

“It also elevated awareness of RECs, enhances market access, and facilitates price transparency,” he said in a statement today.

The auctioned RECs, aligned with the International Attribute Tracking Standard accredited by the I-TRACK Foundation, were cleared at RM4.50 per Contract, showcasing robust local market demand and the effectiveness of BCX’s transparent pricing mechanism.

The BCX platform, recognised by the I-TRACK Foundation, sets a precedent as the first Malaysian operator, and one of only six globally, to achieve this distinction.

The 944MW Murum HEP, first commissioned in 2014, is in the Belaga District, Kapit Division.

It is currently Sarawak’s second-largest hydroelectric plant after Bakun HEP and represents the second large-scale sustainable energy project (following the commissioning of the Batang Ai HEP in 1985) developed by Sarawak Energy on behalf of the Sarawak government.

For the record, Sarawak Energy first introduced RECs in 2019, primarily from sustainable hydropower in Sarawak.

Initially, RECs from the Batang Ai HEP were issued by the Tradable Instrument for Global Renewables (TIGR) registry.

The positive response over the years has supported numerous corporations in achieving their sustainability goals.

In 2022, Sarawak Energy expanded its REC portfolio to include the Murum HEP, registered under the I-REC registry.

As Sarawak Energy prepares for the next phase of REC offerings via continuous trading and off-market transactions in the fourth quarter of this year, it reaffirms its role as a leader in responsible energy production, significantly contributing to the socio-economic advancement of Sarawak. — DayakDaily