Putrajaya:Eligible renewable energy developers under the Corporate Renewable Energy Supply Scheme (CRESS) Acceleration Package (CAP) will benefit from a fixed system access charge (SAC) of 14 sen per kilowatt-hour (kWh) for 10 years. Green consumers will face a different charge of four sen/kWh.
According to BERNAMA News Agency, the Energy Commission (EC) stated that the revised charging structure aims to provide developers with greater cost certainty while ensuring a transparent and equitable allocation of costs and risks between developers and green consumers.
For green consumers, a separate CRESS charge of four sen per kWh will apply based on the prevailing Regulatory Period 4 tariff. The EC, along with Tenaga Nasional Bhd, the Single Buyer, and the Grid System Operator, conducted a briefing on October 13 to elaborate on the CAP announced by the Ministry of Energy Transition and Water Transformation (PETRA) on September 18. This included details on the enhanced SAC structure and measures to aid project implementation.
The fixed-rate arrangement applies to eligible projects that achieve commercial operation by December 31, 2028, subject to eligibility criteria and conditions. Participating projects must commit to a minimum contract period of 10 years. The separate CRESS charge is linked to green consumers' electricity consumption and is distinct from project development costs and the SAC for renewable energy developers.
This arrangement is designed to improve predictability of system access costs, support project financing, and enhance project bankability. The EC highlighted that the separation of charges reflects the different activities, responsibilities, and risks for developers and consumers, guided by principles of cost reflectivity, equitable cost allocation, and transparency.
The commission also briefed industry participants on the basis for calculating the SAC and CRESS charge, including the underlying cost components and potential savings under the CAP compared with the previous SAC structure. However, specific potential savings were not quantified.
The CAP has drawn strong interest, with about three gigawatts of projects in the CRESS pipeline, indicating ongoing interest in corporate renewable energy procurement and growth potential in Malaysia's renewable energy sector. The EC is working on further improvements to the CRESS framework, which include technical and operational requirements, contractual arrangements, procedures, and application documentation.
Amendments to the CRESS Guidelines, incorporating the CAP and relevant enhancements, are anticipated by November 2026. These improvements aim to provide greater clarity for industry participants, facilitate project implementation, and strengthen the overall CRESS framework. CRESS allows renewable energy developers to supply electricity directly to corporate consumers through the existing electricity grid.