TNB transforms mGATS into Malaysia’s Premier Digital Trading Platform for mREC
KUALA LUMPUR — Tenaga Nasional Berhad (TNB) is proud to announce a pivotal evolution in the realm of sustainable energy with the rebranding and transformation of the Malaysia Green Attribute Trading System (mGATS). This innovative digital platform is being upgraded to emerge as the nation’s foremost digital marketplace for Renewable Energy Certificates (mREC).
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. The rebranded mGATS is scheduled for launch in the first quarter of 2024.
The unveiling of the rebranded mGATS took place at the International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM 2023).
Deputy Prime Minister Dato’ Sri Fadillah Yusof, on behalf of Prime Minister Dato’ Seri Anwar Ibrahim, officiated the launch. The event saw the distinguished presence of Natural Resources, Environment and Climate Change (NRECC) Minister Nik Nazmi Nik Ahmad, Deputy Minister Dato’ Sri Huang Tiong Sii, Secretary General Dr. Ching Thoo Kim, and TNB President and CEO Dato’ Seri Ir. Baharin Din.
Deputy Prime Minister Dato’ Sri Fadillah emphasised the significance of mGATS as a pioneering digital trading platform aimed at fortifying Malaysia’s existing Green Electricity Tariff (GET) program.
He highlighted, “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.”
Speaking at the same event, Minister Nik Nazmi stated 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. Minister Nik Nazmi underscored the importance of initiatives such as the Net Energy Metering Programme, Corporate Green Power Programme, and GET Programme, enabling 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,” added Nik Nazmi.
Dato’ Seri Ir. Baharin Din stated that the launch of the rebranded mGATS signifies a crucial milestone in Malaysia’s journey towards a greener and more sustainable energy future. This initiative aligns with the National Energy Transition Roadmap (NETR) targeting a 70% share of renewable energy in Malaysia’s total primary energy supply by 2050.
The upgraded 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,” he added.
mREC is a market-based instrument certifying ownership of electricity generated from RE sources in Malaysia, specifically addressing GHG emissions under Protocol Scope 2 related to electricity generation, distinguishing it from broader-based carbon credits applicable to GHG Protocol Scope 1, Scope 2, and Scope 3 emissions.
For more information on the mGATS platform, customers can visit https://www.mgats.com.my/trading and register their interest.