Malaysia’s state-owned utility firm Tenaga Nasional Berhad (TNB), energy solutions provider SP Group and Singapore’s government owned Singapore Energy Interconnections (SGEI), have signed a joint development agreement (JDA) on last Friday to conduct a full feasibility study for the development of a second electricity interconnection between Peninsular Malaysia and Singapore.
The trio said in a statement that this second interconnection, with a potential capacity of up to 2,000 megawatts (MW), aims to enhance energy cooperation between the two countries and expand the capacity for cross-border electricity trade.
The interconnection is targeted to commence operations by 2030.
With the JDA, all three parties will commence a full feasibility study to ascertain the technical and commercial viability of the second interconnection.
The study will build on the successful pre-feasibility study conducted by SP Group and TNB that was completed in May 2025, which established that there were no technical barriers in implementing a second interconnection.
“TNB, Malaysia’s leading electricity utility, is committed to strengthening regional energy cooperation in support of the ASEAN Power Grid (APG),
“The upcoming feasibility study for the second Malaysia–Singapore interconnection is a crucial step towards expanding cross-border electricity trade,” said Megat Jalaluddin, TNB President/Chief Executive Officer.
“This initiative not only strengthens energy security but also supports Malaysia’s National Energy Transition Roadmap by enabling greater integration of renewable energy,” he added.
Meanwhile, SP Group’s Chief Executive Officer Stanley Huang said as Singapore’s grid operator, the firm remains committed to strengthening its power infrastructure to support regional grid connectivity.
“This study will be the conduit for closer collaboration with Malaysia to enhance energy security through diversified low carbon energy sources,” he added.
Ong Teng Koon, SGEI Chief Executive Officer, said the firm is pleased to partner with TNB and SP Group to conduct a full feasibility study for a second interconnection to strengthen energy connectivity between Singapore and Malaysia.
“This collaboration reflects our shared commitment to enable electricity trade and greater grid resilience between both countries,” he added.
The JDA marks strong progress in the collaboration between Malaysia and Singapore to strengthen bilateral ties and regional power connectivity.
The first interconnection between the two countries was established in 1983 with the primary purpose of mutual support, and upgraded in 2022, accommodating bi-directional electricity flows to 1,000 MW.
It currently supports two cross-border electricity trade projects – the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) and the Energy Exchange Malaysia (ENEGEM) pilot project.
The second interconnection will advance the APG vision by strengthening regional grid connectivity and greater cross-border electricity trade.