Policy Insight - Malaysia: Guideline on Corporate Renewable Energy Aggregation Mechanism (CREAM)

Summary

The Guidelines for Community Renewable Energy Aggregation Mechanism (CREAM) was published in March 2025 and provides a structured policy framework to enable community participation in Malaysia’s renewable energy sector. Benefits of the framework include promotion of RE growth in the domestic market, enables communities to generate additional income from selling excess RE, and promotes competition in the RE supply market.

This Policy Insight dives into how CREAM can support Malaysia’s goal of reaching 70 percent renewable energy in its power mix by 2050. It introduces the roles of key parties involved, including homeowners, Local Energy Generators and Aggregators (LEGAs), and utilities, while detailing five core contractual arrangements that govern participation. The framework reduces financial risks, promotes fair access to renewable electricity, and strengthens local economic opportunities through community-based solar deployment—offering a replicable model for inclusive and decentralised energy systems in the region.