The new Corporate Renewable Energy Supply Scheme (CRESS) guidelines aim to assist Malaysian companies in sourcing renewable energy. This scheme enables businesses to purchase green electricity directly from renewable energy developers (REDs) via open access to the electricity grid, contributing to Malaysia’s climate change efforts and its goal of achieving 70% renewable energy by 2050.
Under CRESS, companies can establish agreements with REDs to supply renewable electricity for their operations, which will be delivered through the national electricity grid managed by the Electricity Utility Company (EUC). The EUC ensures the seamless connection of both REDs and companies to the grid for efficient transfer of green electricity.
The government encourages participation in CRESS to help companies meet their environmental sustainability objectives, particularly those committed to environmental, social, and governance (ESG) standards. This initiative builds on previous efforts like the Corporate Green Power Program (CGPP) and large-scale solar power projects. CRESS also facilitates physical power purchase agreements between companies and REDs, allowing for more direct engagement in green energy procurement.
The Energy Commission has established specific guidelines for participation. Renewable energy developers must register their projects and disclose their energy output. They can supply multiple companies, but the total energy provided must match the registered capacity. Participating companies, referred to as Green Consumers, must meet certain eligibility criteria.
The EUC is responsible for billing companies based on their energy usage, while REDs receive payment for the electricity they generate. The scheme includes safeguards, such as a supplier of last resort, ensuring companies receive electricity even if their renewable energy supplier is unable to meet their demands.
CRESS supports Malaysia’s transition to renewable energy and is anticipated to play a vital role in achieving the country’s climate objectives.
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