The government is expected to begin implementing Third Party Access in the national electricity supply industry from September this year, therefore allowing independent power producers (IPP) to sell electricity directly to consumers. This was revealed by deputy prime minister Fadillah Yusof yesterday during the launch of the Malakoff Corporation Berhad Biomass Co-Firing Project at the Tanjung Bin energy plant.
“Third party access means that other parties can supply energy if they have their own customers, without going through or buying from Tenaga Nasional Bhd (TNB),” said Fadillah, who is also the energy transition and water transformation (PETRA) minister. “They can supply power generation themselves and supply directly to their customers, but will rely on TNB’s transmission lines.”
Initially planned for next year, the deputy prime minister revealed that the initiative’s implementation was brought forward through PETRA’s planning. This is following foreign investors’ high interest in establishing data centres in Malaysia, which would require high energy sources, he added.
Since 1992, IPPs were permitted to join the national power generation sector to shift the financial burden of power plant development from government-owned utilities to the private sector. This move was also driven by an existing shortage in power generation capacity.
Fadillah said further details from the government regarding Third Party Access will be announced by the government sometime in July this year. Enforcement, on the other hand, is slated to begin later in September.
(Sources: Bernama / Malaysia Energy Commission / Marc)
