The Introduction of Virtual Power Purchase Agreement (VPPA) Into the Malaysian Renewable Energy Industry

On the 29th of August 2022, it was announced by our Prime Minister, Dato’ Sri Ismail Sabri Yaakob at the 5th International Sustainable Energy Summit (“ISES”) organised by the Sustainable Energy Development Authority (“SEDA”), that Malaysia is expected to bolster its current arsenal of solar energy programmes by introducing the concept of Virtual Power Purchase Agreement (“VPPA”). This is a new procurement option of green electricity supply with a quota of 600MW.

This article wishes to explore the concept of VPPA generally practiced around the globe and the potential benefits which come with its introduction in Malaysia.

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