SEB sells RECs through groundbreaking online auction

KuchingSarawak Energy has sold 268,800 Hydro Renewable Energy Certificates (HRECv24 contracts) procured from the Murum Hydroelectric Project (HEP) to buyers across 15 diverse industries.

The company completed the transaction on June 25 through an online auction hosted by Bursa Carbon Exchange (BCX), a subsidiary of Bursa Malaysia, the Malaysian stock exchange.

Sarawak Energy group chief executive officer Datuk Sharbini Suhaili said in a press release today (July 9) that the auction was the first of its kind and would lay the foundation for future endeavours.

“We are pleased with the results of the inaugural auction, which was made possible through our strategic cooperation memorandum with BCX signed at COP28 in Dubai.

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

The RECs that were auctioned and certified by the I-TRACK Foundation were awarded at RM4.50 per contract, highlighting the strong demand in the local market.

The BCX Platform is the first operator in Malaysia to achieve certification by the I-TRACK Foundation.

The Murum Hydropower Plant, a 944MW facility which began operation in 2014, is part of the Sarawak Corridor of Renewable Energy (SCORE) initiative and the Post COVID-19 Development Strategy 2030 (PCDS2030).

It is the second largest hydroelectric plant in Sarawak and has been developed following a comprehensive Environmental and Social Impact Assessment and in compliance with state and national regulations.

Sarawak Energy introduced RECs in 2019, initially at its Batang Ai thermal power plant.

The positive response over the years has helped many companies achieve their sustainability goals.

The company expanded its REC portfolio in 2022 with the addition of Murmu HEP.

Sarawak Energy is gearing up for the next phase of its REC offering in the fourth quarter of this year.

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