NEWS & UPDATES

A landmark auction for Hydropower Renewable Energy Certificates, hosted online by Bursa Malaysia Berhad’s subsidiary, Bursa Carbon Exchange (BCX), featured 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 Hydropower Renewable Energy Certificates for vintage year 2024 (HRECv24) conducted by BCX on 25 June 2024 paves the way for more such initiatives and products in the future.

“We are pleased with the outcomes of the inaugural auction, made possible through our strategic Memorandum of Collaboration with BCX, signed at COP28 in Dubai. This collaboration underscores our commitment to sustainability and our role in shaping a resilient energy future. It also elevates awareness of RECs, enhances market access, and facilitates price transparency,” said Sarawak Energy Group Chief Executive Officer, Datuk Haji Sharbini Suhaili.

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 Murum HEP is a key component of the Sarawak Corridor of Renewable Energy (SCORE) initiative and subsequently the Post-COVID19 Development Strategy 2030 (PCDS2030), both of which aim to sustainably elevate Sarawak to high income status by harnessing its renewable energy resources.

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.

The development of the Murum HEP was conducted in compliance with the relevant state and national regulations and procedures. Comprehensive Environmental and Social Impact Assessments were carried out, alongside a Resettlement Action Plan, ensuring the proactive management of environmental and social impacts, fostering community involvement and transparency.

All hydropower facilities operated by Sarawak Energy are designed and constructed following guidelines set by the International Commission on Large Dams (ICOLD) and are now developed and managed in accordance with the Hydropower Sustainability Alliance’s Hydropower Sustainability Standards. This commitment extends to biodiversity conservation efforts in partnership with the Sarawak Forestry Corporation, which include the Wildlife Monitoring and Rescue (WiMoR) Operation and the Murum Flora Conservation Garden Island.

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, the company 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.

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.

Metalun Resettlement Area

After resettlement, the community embraces the change in lifestyle from a semi-nomadic to a more settled way of life.