Corporate Renewable Energy Supply Scheme (CRESS) in Malaysia: Accelerating Corporate Access to Solar Power
The Corporate Renewable Energy Supply Scheme (CRESS) is a pioneering initiative launched by the Malaysian government in September 2024 to facilitate greater access to renewable electricity for corporate companies. This scheme enables businesses to procure green electricity directly from renewable energy producers, primarily solar developers, through an open grid access system, marking a significant step towards Malaysia's ambitious clean energy transition and sustainability goals.
What is CRESS?
CRESS operates under a Third-Party Access (TPA) model that allows corporate entities to enter into Power Purchase Agreements (PPAs) directly with renewable energy developers. Corporate buyers, known as Green Consumers, can purchase renewable energy without relying on traditional utility intermediaries. The scheme involves several key players: Renewable Energy Developers (REDs) who generate clean electricity, Green Consumers who procure it, the Single Buyer and the Grid System Operator who manage the market and grid stability, and Tenaga Nasional Berhad (TNB), the national utility responsible for electricity delivery and billing.
Framework and Participation
The CRESS framework is built to ensure a robust physical and financial flow of renewable energy. Renewable energy developers build, own, and operate generating plants connected directly to the national grid. They supply green electricity to corporate consumers who can contract with one or multiple developers based on their energy needs. This flexible arrangement enables corporate buyers to tailor their renewable energy mix and volume as per their operational requirements.
Participating companies pay a system access charge to the grid system operator for utilizing the national grid infrastructure. The Energy Commission regulates and oversees the scheme, ensuring compliance and smooth market operations.
Benefits for Corporates
Direct Access to Renewable Energy: Corporates can source electricity from solar farms or other renewable energy plants without requiring on-site installations.
Cost Stability: Long-term Power Purchase Agreements provide tariff certainty, supporting better financial planning and reduced energy costs.
Sustainability Goals: Enables companies to meet Environmental, Social, and Governance (ESG) commitments and carbon reduction targets.
No Cap on Green Consumer Participation: Both new and existing customers of utilities can participate, allowing broader corporate involvement in renewable energy purchasing.
Supports Renewable Energy Expansion: By procuring green electricity, corporates directly support increased renewable capacity development in Malaysia.
Malaysian Renewable Energy & Net Zero Ambitions
CRESS aligns with Malaysia’s target to achieve 70% renewable energy in the country’s energy capacity mix by 2050. The scheme helps drive demand for renewable energy, notably solar photovoltaic (PV) installations, accelerating the nation’s transition to a low-carbon economy. It complements other programs like the Corporate Green Power Program (CGPP), which focused on virtual renewable energy purchasing, by offering physical grid access and actual renewable energy supply.
Broader Impact
The introduction of CRESS reflects Malaysia’s commitment to facilitating clean energy adoption among high-priority sectors. It acts as a catalyst for corporate sustainable growth, offering a practical pathway to reduce greenhouse gas emissions while securing reliable and affordable electricity. Through CRESS, Malaysia strengthens its position as a regional leader in renewable energy integration and corporate sustainability.
The Corporate Renewable Energy Supply Scheme is an innovative platform, encouraging Malaysian corporates to actively engage in the green energy transition. By bridging renewable energy producers and corporate consumers through a well-regulated market and grid system, CRESS supports Malaysia’s broader vision of a sustainable and energy-resilient future powered by clean, affordable, and reliable renewable electricity.