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Malaysia’s 1st Pilot Run of Peer-to-Peer (P2P) Energy Trading

08/10/201930 Likes

What is P2P Energy Trading?

  • P2P energy trading occurs when solar photovoltaic (PV) producer sells excess solar electricity on an energy trading platform to another consumer
  • Typically, prosumers will sell their solar electricity at a rate competitive to retailer’s tariff
  • Participating consumers have the choice of purchasing solar electricity from the P2P or from the retailer
  • Grid operator is compensated with grid fee
  • Retailer operating the energy trading platform is compensated with retailer’s fee

P2P pilot project in Malaysia

  • P2P is one of the strategies to be explored under the Renewable Energy Transition Roadmap (RETR) 2035 to augment the solar PV rooftop market
  • The P2P supports the new initiatives under MESI 2.0 by:
  • empowering customers with choices
  • encouraging more solar PV prosumers; and
  • enhancing customer experience through digital innovation
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  • Pilot run is among net energy metering (NEM) prosumers and electricity consumers
  • The regulatory sandbox approved by the Energy Commission of Malaysia allows NEM prosumers to sell excess solar PV electricity to Tenaga Nasional Berhad (TNB)’s consumers
  • The pilot run is staggered into two parts; the alpha and beta runs
  • The alpha will run for two months and during this time, the objective is to test technical operability on energy trading and there is no financial transaction
  • The beta will run for six months and during this time, there will be financial settlement between NEM prosumers and consumers via TNB’s electricity bills
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Roles & Participants

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For enquiry, please contact en. Mohd Adzha Bin Husin (Adzha@seda.gov.my) 03-88705855

P2P Poll Survey

Click Here.

P2P ENERGY TRADING PILOT PROJECT FAQs

Requirements to become a Prosumer or Consumer:

How can I participate in this P2P Pilot Run Project?

For any interested participants either to become a Prosumer (seller) or Consumer (buyer), you can email your request to adzha@seda.gov.my or contact direct line 03-88705855.

What is the eligibility criteria to become a Prosumer?

The pre-condition to become a Prosumer is you must be a NEM Holder (only applicable to Solar PV only), registered with SEDA Malaysia and hold a generation license for system capacity of or >72kW with the Energy Commission (ST).

If I have a PV system installed under SELCO (Self consumption), am I eligible to be the Prosumer?

Yes, as long as it is grid-connected PV system and the SELCO needs to convert to NEM and fulfil the requirements set under NEM criteria.

Is there any limit on how much energy a Prosumer can export?

There is no limit for a Prosumer to export the energy in the P2P energy trading pilot run.

How do I know whether I am accepted to be the Prosumer or Consumer?

SEDA will evaluate and choose suitable Prosumer or Consumer under this pilot run based on the matching of supply and demand in the pilot run and TNB Tariff as under this pilot run, the selling price of energy will be capped to ensure consumers have savings opportunity when buying from the P2P platform.

Is there any other contract of terms that I have to abide to participate in this pilot run?

Yes, as a Prosumer or Consumer, you have to agree to the Terms and Conditions of Participation of the Pilot Run.

What is the network charges imposed for the P2P trading pilot run?

The sandbox is approved by the Energy Commission and the sandbox network charges approved is 6.3 sen/kWh.

What is the recommended TNB tariff as a Prosumer and Consumer in this pilot project?

The P2P energy trading operates based on energy arbitrage opportunities. In this regard, the recommended TNB tariff for Prosumers should be  in lower tariff band (C1 or E2) and with maximum arbitrage opportunity of 10% as margin (hence, 40.15 sen/kWh and 39.05 sen/kWh). The amount of export energy must be average of more than 1000kWh/month. Exemption is given for Prosumers who are willing to reduce their selling rate to maximum of 40.15 sen/kWh.

As a Consumer, the recommended TNB tariff is a minimum of 50 sen/kWh. The Consumer will bear the sandbox network charges of 6.3 sen/kWh.

When is the closing date to participate in this pilot run?

The deadline for registration as a Prosumer or Consumer will be on 15th January 2020.

Trading Platform:

Will there be any other P2P platforms for the energy trading during this pilot run?

Over the 8-months pilot run, Power Ledger (PL) will be the only platform provider for the P2P energy trading. In future when the P2P energy trading goes live, the platform providers will assessed by the electricity retailers providing this service.

Other RE Resources and Requirements of Participation:

Is it possible for other Renewable Energy (RE) resources such as Small Hydro or Bioenergy to participate in this pilot project? And if the government decides for P2P to go live, will other RE resources be considered in participating in the P2P trading?

For this pilot run, only Solar PV under NEM programme is allowed to participate due to the existing NEM holders available is only with Solar PV. At the end of the pilot run, SEDA will deliver the findings of the pilot run which includes recommendations from the RE industry as well as participants (prosumers and consumers) on how the P2P can be improved for live implementation.

I intent to apply for NEM programme and participate in this P2P pilot project. Can i oversize the PV system so that I have more export energy to the grid for trading purpose?

This pilot run is only for 8 months and the qualification is must be a NEM holder with fulfilment of NEM requirements and criteria.

I am TNB’s Domestic customer. If I want to participate as a Consumer, do I need to replace the existing meter to Smart Meter type?

Smart meter or other TNB approved meter that have similar functions is required for this P2P energy trading pilot run.

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