Sarawak Delivers First Renewable Energy Certificate

Sarawak Energy Signs REC MoU with Shell MDS

10 DECEMBER 2019

A milestone was achieved today with the launch of Sarawak’s first Renewable Energy Certificate (REC) at the inaugural Sustainability and Renewable Energy Forum (SAREF) 2019 in Kuching, allowing greater participation in a more sustainable energy future.

Delivered by Sarawak Energy Berhad (Sarawak Energy), each REC given out represents the environmental benefits of 1MWh of renewable energy generated from the Batang Ai Hydroelectric Plant.

In addition to the historic deliverance of the REC, Sarawak Energy also signed a Memorandum of Understanding (MoU) to undertake a study on certified renewable energy supply with Shell MDS (Malaysia) Sdn Bhd (“Shell MDS”).

The MoU focuses on research into RECs as a mechanism for procuring and driving greater integration of renewable energy into energy supply chains and is a landmark for the local energy sector.

The REC launch and MoU signing ceremony was held in conjunction with the official opening of SAREF 2019 at the Borneo Convention Centre Kuching.

The event was witnessed by Chief Minister Datuk Patinggi Abang Haji Johari Tun Openg; Minister for Utilities Dato Sri Dr Stephen Rundi together with United Nations Goodwill Ambassador Tan Sri Michelle Yeoh and forum speakers and delegates. All received individual RECs.

Datu Haji Sharbini Suhaili, Group Chief Executive Officer and Ting Ching Zung, Executive Vice President for Strategy & Corporate Development signed the MoU on behalf of Sarawak Energy.

Shell MDS was represented by Datuk Iain Lo, Chairman Shell Malaysia and Omar Sheikh, Managing Director, Shell MDS.

Economic prosperity and continuing growth have led to a rise in energy-related carbon emissions globally, making climate change an ever-bigger threat.

Despite Sarawak’s steady economic development and an industry-driven increase in energy consumption, Sarawak Energy has managed to decarbonise electricity supply through the development of renewable hydropower, recording a decrease of about 77% in grid carbon intensity since 2010.

Sarawak Energy’s introduction of the REC provides for the corporate purchase of renewable energy generated in Sarawak. Hydropower is the foundation for the Sarawak Corridor of Renewable Energy, making the venture into a RECs a natural progression.

The certificate is regulated by the Tradable Instrument for Global Renewable (TIGR) registry, an online platform for transparent, secure and reliable tracking of RECs. It was established to provide best practice guidelines and Carbon Disclosure Project (CDP) standards for tracking and reporting of REC and to provide assurance to buyers of the integrity of each REC transaction.

With the signing of the MoU, both Sarawak Energy and Shell MDS will work together to explore the development of RECs for Shell MDS which could potentially stimulate renewable energy deployment across Sarawak.

The MOU also includes a study on the reliability of additional renewable electricity supply to support the commitment of Shell MDS to decarbonise their operation in Bintulu, Sarawak.

Lo (right) and Sharbini exchanging the MoU document and witnessed by (from left) Ting, Yeoh and Abang Johari.