July 26,2024-The Government will launch the Enterprise Renewable Energy Supply Program (CRESS) from September 2024 to increase their access to green electricity supply. Through the concept of open grid access, a third party (third party access-TPA) can supply (sell) or obtain (purchase) power through the grid network system and charge a set system access fee.
The launch of the CRESS program is part of the efforts made by the Ministry of Energy and Water Transition (PETRA) under the GREENS MADANlatauGovernmentRenewabeEnergyEnhancement for Niche Sector initiative to support the energy transition in high-priority industries.
Malaysian companies need to choose to reduce their carbon footprint through green electricity supply. At present, the company can fulfill its green power commitments) through net energy metering (NEM) and self-use (SelCo) plans, purchase renewable energy certificates (TBB) through the Malaysian Green Property Trading System (mGATS), or subscribe to Electricity Tariff Green (GET). On August 31,2022, the government also launched the Enterprise Green Energy Program (CGPP) to help companies meet their ESG commitments by purchasing electricity.
According to the CRESS plan, TBB generators and qualified enterprise companies can make green power supply arrangements under agreed conditions through the existing supply system. Enterprises can obtain TBB power directly from identified TPA TBB generators, and TPB generators can also provide TBB power to enterprise users. The details of the implementation framework of NEDA market CRESS participation through the TNB grid network are shown in Figure 1.
CRESS The implementation will be by the energy committee by the electricity supply law of 1990 (act 447) for regulation, and a single buyer (SB) and grid system operator (GSO) will act as a market and system operators, the two entities will handle according to the government agreed regulations, in the power supply system "access and scheduling" coordination, the country will continue to play the role of the utility power supplier, channel obtained power supply.
Green electricity supply period will always meet the production and demand of consumers. The Energy Committee will conduct a series of explanations of the relevant procedures and guidelines to the industry participants. CRESS General conditions for participation are as follows:
A. Open to new TBB generators from various TBB sources connected to high voltage (HV) levels and new or existing TNB users requiring additional or new power supply in medium to high level commercial and industrial categories;
b. The connection between TBB generator and green users must be directly connected through the grid system to ensure comprehensive power supply planning;
c. The limitation of connection with power grid system is based on the results of power system study (PSS);
d. The power output generated by TBB generator needs to be in fimm form to improve reliability, system stability and minimize interference to the power supply system; and
e. TBB generators will be able to choose to produce fixed production without a higher system access fee (CAS) payment rate.
Open grid access through the CRESS program is a step toward liberalizing the energy market, which is expected to reduce the risks (de-risks) and costs of the country's power supply system and provide fair opportunities for developers. Competition in a healthy way. This approach will also attract more local TBB industry players. Therefore, the future TBB development focus will shift from power purchase agreement (PPA) to CRESS scheme.
GREENS MADAN, Under the initiative of CRESS plan in line with the wishes of the government, namely by 2035 will TBB capacity from 26%(10.6GW) to 40%, to 2050 to 70%, in order to reduce the dependence on fossil fuels, the plan will reduce 701,000 tons of carbon dioxide emissions each year, also produce more than 100, direct investment, and create nearly 14,000 new jobs in the sustainable energy industry.
The Ministry of Energy Transformation and Water Resources Transformation, July 26,2024
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