Policy Insight - Malaysia: Corporate Renewable Energy Supply Scheme (CRESS)

Overview

Corporate Renewable Energy Supply Scheme (CRESS) exemplifies ASEAN’s growing confidence in market reforms and the importance of sustainability in investment decisions, with a focus on Malaysia’s innovative approach to corporate green energy procurement. As the region grapples with balancing economic growth and sustainable energy use, CRESS Guidelines set out the regulatory framework and requirements that offers broader green electricity supply options to help eligible Renewable Energy Developers (RED) and green Consumers meet their ESG goals through Third Party Access (TPA).

This edition highlights CRESS’s contribution to Malaysia’s Net Zero target, in effort to fulfil Malaysia’s Net Zero aspiration to achieve 70% RE in the capacity mix by 2050, enabling businesses and corporate organisations to source their green electricity through a physical power purchase agreement and Open Access to the Grid System.

This policy insight delves into the mechanics of CRESS, its essential requirements, and its broader implications for ASEAN’s evolving energy markets. As other countries in the region watch closely, Malaysia’s bold step forward could catalyze a domino effect of legal initiatives, unlocking significant private sector investment in sustainable power generation and energy procurement across Southeast Asia.

The data was collected from various reliable sources: official reports from the governments, the private sector, international organisations, and the ASEAN Centre for Energy report.