Malaysia Unveils New Corporate Renewable Energy Supply Scheme (CRESS) Guidelines

The guidelines introduce the Corporate Renewable Energy Supply Scheme (CRESS), which aims to help companies in Malaysia source renewable energy. The scheme allows businesses to buy green electricity directly from renewable energy developers (REDs) through open access to the electricity grid. It is part of Malaysia’s effort to address climate change and achieve a renewable energy target of 70% by 2050.

Under CRESS, companies can form agreements with REDs to supply renewable electricity to their operations. The energy will flow through the national electricity grid, managed by the Electricity Utility Company (EUC). The EUC ensures that both the REDs and the companies are connected to the grid, enabling the smooth transfer of green electricity.

The government encourages companies to participate in CRESS to meet their environmental sustainability goals, especially those with environmental, social, and governance (ESG) commitments. This program builds on earlier initiatives such as the Corporate Green Power Program (CGPP) and large-scale solar power plants. CRESS also allows companies to sign physical power purchase agreements with REDs, creating more direct involvement in green energy procurement.

The Energy Commission has set specific guidelines for participation in CRESS. Renewable energy developers must register their projects and declare their energy output. They can serve multiple companies, but the maximum energy supplied must align with what is registered. Companies, known as Green Consumers in this context, must also meet certain eligibility criteria to participate.

The EUC is responsible for billing the companies based on their energy consumption, and REDs are paid for the electricity they generate. The scheme includes protections, such as the supplier of last resort, ensuring that companies continue to receive electricity even if their renewable energy supplier cannot meet their needs.

This scheme supports Malaysia’s transition to renewable energy and is expected to play a key role in achieving national climate goals.