A new initiative in Malaysia allows businesses to purchase green electricity directly from renewable energy developers through the national grid, marking a significant step in the country's renewable energy landscape. The Ministry of Energy Transition and Water Transformation (PETRA) anticipates that the Corporate Renewable Energy Supply Scheme (CRESS) will generate over MYR 10 billion (approximately $2.4 billion) in direct investments.
CRESS, which officially opened on September 20, builds on earlier renewable energy initiatives and aims to streamline the purchasing process for green electricity. The program's guidelines establish eligibility criteria for both purchasing companies and electricity developers. Developers are required to register their projects and declare their energy output, which must correspond to the maximum electricity sold. This flexibility allows developers to serve multiple companies, while businesses can source green electricity from several developers, up to a capacity determined by the local Electricity Utility Company (EUC).
The EUC will play a critical role in ensuring that both developers and purchasing companies are connected to the grid, as well as managing the billing process based on monthly meter readings.
CRESS is expected to facilitate a transition away from traditional long-term power purchase agreements (PPAs) in Malaysia, offering a more dynamic approach to renewable energy procurement. The program builds upon previous incentives, such as the Corporate Green Power Programme, which allowed businesses to enter into virtual PPAs with renewable developers.
PETRA has projected that CRESS will create nearly 14,000 new jobs in the sustainable energy sector, supporting Malaysia's goal of increasing the share of renewable energy in its electricity mix to 40% by 2035 and 70% by 2050. The ministry expressed confidence that the initiative will act as a catalyst for achieving the country's energy transition objectives and enhancing the development of its electricity supply sector.
