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by Ng Yew Weng
Table of Contents:
What Is the Corporate Renewable Energy Supply Scheme (CRESS) in Malaysia?
The Corporate Renewable Energy Supply Scheme (CRESS) in Malaysia aims to help corporate entities procure renewable energy directly. It operates under a Third-Party Access (TPA) model, allowing companies to purchase green electricity directly from renewable energy developers through the national grid. If you want to skip ahead and register your interest in CRESS, click here. Otherwise, keep reading to learn more.
At Progressture Solar, we have successfully managed over 800 completed and ongoing clean energy projects, resulting in the generation of 131,400MWh of clean energy and the prevention of 99,600 tonnes of carbon emissions annually. Based on our extensive experience within the energy sector, here is all you need to know about the CRESS initiative in Malaysia.
The CRESS Framework
CRESS in Malaysia constitutes a robust framework with the following key players:
Green Consumer (GC)
Green Consumers are local companies that choose to source renewable energy through the CRESS framework. They may procure green electricity from multiple Renewable Energy Developers. However, when it is not available, they are allowed to consume energy directly from TNB.
Renewable Energy Developer (RED)
Market and System Operator
Tenaga Nasional Berhad (TNB)
Suruhanjaya Tenaga (ST)
Who Is Eligible for CRESS?
Green Consumers are eligible to apply for the CRESS programme if they are:
A local Green Consumer from the commercial and industrial sectors
Existing power consumers, or consumers looking for additional or new electricity supply demand
High Voltage (HV) and Medium Voltage (MV) connection consumers (existing or new TNB customers)
Green Consumers may source green electricity from multiple Renewable Energy (RE) Developers, and they may also consume energy from TNB during the unavailability of imports from RE Developers.
Prior to 1 March 2025, the CRESS programme was only applicable to consumers who were looking for additional or new electricity supply demand. However, from March 2025 onwards, CRESS will be open to all power consumers. This means that existing buildings such as industrial facilities, office buildings, shopping malls, and data centres can tap into solar farms to utilise green electricity.
What Are the Contractual Frameworks Under the CRESS Guidelines?
There are five agreements in CRESS:
CONTRACT | SIGNED BETWEEN |
Bilateral Energy Supply Contract (BESC) | RED & GCs |
Corporate Renewable Energy Supply Agreement (CRESA) | GCs & TNB |
Renewable Energy Supply Access Agreement (RE SAA) | RED & TNB |
Back-feed Agreement | RED & TNB |
New Enhanced Dispatch Arrangement (NEDA) Agreement | RED & Single Buyer |
As a Green Consumer, the two CRESS agreements to note are:
The Bilateral Energy Supply Contract (BESC), which outlines the sale and purchase of electricity between the RE developer and the corporate consumer.
The Corporate Renewable Energy Supply Agreement (CRESA), which allows TNB to supply electricity to the corporate consumer in the event the RE developer is unable to.
The RE developer is responsible for submitting the application for participation in CRESS on behalf of the consumer(s).
What Are the Benefits and Impacts of CRESS?
For corporate consumers, the CRESS initiative offers many benefits:
Direct Access to Renewable Energy
Corporate consumers have the flexibility to choose energy sources and can directly source renewable energy from developers. This enables companies to align with ESG goals and reduce their carbon footprint.
Ownership of Green Attributes
Regulatory Support and Framework
According to the Ministry of Energy Transition and Water Transformation’s press release [2] in July 2024, CRESS is expected to:
Attract over RM10 billion in direct investments into the renewable energy sector.
Create nearly 14,000 new jobs within the sustainable energy industry.
Increase renewable energy capacity from 26% (10.6GW) to 40% by 2035 and 70% by 2050.
Reduce carbon emissions by 701,000 tCO2 annually, contributing significantly to Malaysia’s environmental and sustainability goals.
What Is the Current Status of CRESS in Malaysia?
Effective 1 March 2025 onwards, CRESS is open to all power consumers. This means that existing buildings, on top of buildings requiring new or additional power demand, can utilise green electricity through the CRESS policy in Malaysia.
Since it's commencement in September 2024, CRESS is poised to transform the access and utilisation of renewable energy by Malaysia's corporate consumers. Under this new framework, Green Consumers and Renewable Energy (RE) Developers will connect directly through the national grid system, facilitating straightforward access to green electricity.
A CRESS briefing in August 2024 [1] mentions that the Energy Commission will set a system access charge of 25 sen per kWh for firm electricity supply (e.g., solar farms with battery storage). For non-firm electricity supply, which is more variable and less predictable, the system charge will be 45 sen per kWh.
Conclusion: Register Your CRESS Interest with Progressture Solar
If you want to leverage the CRESS policy for your company, now is the perfect time to explore how your business can benefit. Progressture Solar can guide you through the process. Contact us to learn more now.
Why You Can Trust Progressture Solar
Progressture Solar is committed to helping businesses achieve net zero by offering tailored solutions for specific needs. As a leading clean energy provider and net-zero partner, our in-house team of experts and professionals reviews our content for accuracy. We also use updated data, facts, and expert advice in all our content.
References
1 Suruhanjaya Tenaga. “Taklimat. Program “Corporate Renewable Energy Supply Scheme” (CRESS). 23 August 2024.
2 Kementerian Peralihan Tenaga Dan Transformasi Air (PETRA). “Kenyataan Media. CRESS Tingkatkan Akses Bekalan Elektrik Hijau Bagi Syarikat Korporat Di Malaysia.” 26 July 2024.
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