What is NEDA?

NEDA is an energy market that provides avenues for merchant generators i.e. generators without Power Purchase Agreement (PPA) to sell energy to the system.

Introduced by Suruhanjaya Tenaga in 2017, NEDA aims to enhance cost efficiency, adoption of efficient technologies and business opportunities for merchant generators.

Cost Efficiency

Enhance cost efficiency in electricity generation through short-run competition.

Energy Efficiency

Enable energy-efficient technology, such as co-generation plant to participate in the energy market.

Business Opportunity and Enhancement

Provide opportunity for non-PPA/SLA generators, such as co-generation plant, franchise utility and expired PPA generator to operate as merchant generator and sell energy to the system.

Registration Process

To participate in NEDA, applicants are required to complete registration process. The process ensures secure integration into the Grid system and regulatory compliance.

Download Process

Step 1 of 7

Conduct Power System Study (PSS)
To ensure adequate and secure connection to the Grid system, the applicant is required to conduct PSS:
1. PSS Stage 1 - Steady- state analysis
2. PSS Stage 2 - Dynamic and transient analysis
Step 2 of 7

Submission of NEDA Registration Form
Step 3 of 7

Registration Verification
1. Single Buyer reviews registration data
2. If connected to Grid, SB informs and consults GSO on applicant's future connection into Grid system
3. GSO approves applicant's future connection into Grid system
4. Single Buyer sends registration verification letter to applicant and notifies Suruhanjaya Tenaga
Step 4 of 7

Execution of NEDA Deed of Accession
1. SB sends NEDA Deed of Accession to the applicant
2. Applicant executes NEDA Deed of Accession
Step 5 of 7

Execution of NEDA Connection Agreement
1. TNB Grid and Distribution Network furnish information for SB to prepare draft of NEDA Connection Agreement
2. Single Buyer sends applicant NEDA Connection Agreement
3. Applicant executes NEDA Connection Agreement
4. Applicant fulfills Conditions Precedent to Effectiveness of Agreement
Step 6 of 7

Application of NEDA Generation License
Step 7 of 7

Achievement of COD/Firm Participation Date

Categories of NEDA Participants

NEDA participation is structured around clear participant categories, each with defined roles, bidding mechanisms, and settlement arrangements. This ensures fair competition, transparent pricing, and consistent system operations across the market.

_{CRESS - Corporate Renewable Energy Supply Scheme, CREAM - Community Renewable Energy Aggregation Mechanism}

Bidding Mechanism: VOR (Variable Operating Rate)

Settlement: Pay As Bid

Failure to meet declared MW: Penalty as per PPA

Open to LSS3 and LSS4
Can only participate in NEDA once the obligation under the Solar PPA to provide the Maximum Annual Allowable Quantity (MAAQ) is fulfilled

Bidding Mechanism: Bid Price

Settlement:

At the Bid Price if the Bid Price is not more than the Energy Rate in the PPA and the System Marginal Price
At the Excess Energy Rate in the PPA if the Bid Price is more than the Energy Rate in the PPA or the System Marginal Price

Failure to meet declared MW: Penalty as per PPA

Bidding Mechanism: Price - Quantity

Settlement: Actual System Marginal Price

Failure to meet declared MW: Penalty of RM150/MW shortfall per event