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The Ministry of Energy Transition and Water Transformation recently released a media statement introducing the Corporate Renewable Energy Supply Scheme (“CRESS”). CRESS is a strategic initiative which aims to provide corporations with greater access to green electricity, reinforcing Malaysia’s commitment to a sustainable energy future.
“[T]he CRESS programme is expected to increase RE capacity and reduce carbon emissions.”
This scheme indicates that the government is shifting from the current power purchase agreement model to the CRESS framework, marking a significant step towards liberalising Malaysia’s Renewable Energy (“RE”) market and accelerating its commitment to the National Energy Transition Roadmap (“NETR”). The programme leverages the concept of open grid access, enabling third parties to supply or procure electricity through the grid network under a regulated system access charge.
Our earlier updates on the NETR can be viewed here and here.
Key Features of CRESS Implementation
The implementation of CRESS will be regulated by the Energy Commission under the Electricity Supply Act 1990 (Act 447) throughout West Malaysia only¹, and can be carried out in two main ways:
TNB will continue to play the role of a utility electricity supplier, ensuring consistent delivery of generated electricity to consumers both within and outside the green electricity supply period.
General Conditions for Participation
Eligibility:
Direct Connection:
Connection Limits to the Grid Supply System:
Firm Output Requirement:
Key Benefits
The CRESS programme is expected to:
The Energy Commission will provide more information on the criteria and procedure for participation as we approach the launch in September.
If you have any query, please contact the author, Joyce Ong, Partner in the ESG and Sustainability Practice (oky@lh-ag.com). This article was co-authored by Pacey Ting Zhao Ying, Pupil.
REFERENCES:
[1] Electricity Supply Act 1990 (Act 447) (Malaysia) s 2; Electricity Supply (Suspension of Operation of the Act for Sabah) Order 2023 [P.U.(A) 394/2023]; Suspension of the Operation of the Act (Sarawak) Order 1990 [P.U. (A) 272/1990]
[2] New Enhanced Dispatch Arrangement (NEDA) is a program which allows non-PPA/SLA Generators such as co-generators, renewable energy generators/producers, embedded generators and expired PPA/SLA Generators to operate as Merchant Generators to sell energy to the Single Buyer.
[3] Power system studies, are an essential part of the design and operation of any electrical system. These studies help engineers understand the behaviour of a system under various conditions and ensure that it is safe, reliable, and efficient.
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