Malaysia's Ministry of Electricity and Water Resources (PETRA) has unveiled the regulatory framework for the Corporate Renewable Energy Supply Scheme (CRESS) for the first time. The program, which allows companies to purchase power directly from renewable energy developers through the Malaysian power grid, was officially launched on September 20th.
The CRESS Framework Guidelines set out the qualification requirements for power purchasers (companies) and power sellers (renewable energy developers).
The seller is required to register the project and declare the output, which needs to be consistent with its maximum power sold, allowing the seller to serve more than one company at the same time.
It is also permissible for a purchaser to purchase power from more than one seller at the same time, but not to exceed the maximum capacity set by the local utility.
The utility will ensure that both the purchasers and sellers of electricity involved in the agreement will be able to connect to the grid and be billed based on meter readings.
Compared to Malaysia's original Corporate Green Power Programme, which also allows companies to enter into virtual PPAs with renewable energy developers, the newly released CRESS framework program, with lower participation thresholds, greater flexibility and simpler settlement methods, is expected to replace the original Corporate Green Power program.
Malaysia Renewable Energy Target
Malaysia's renewable energy targets are to achieve 31% of its electricity from renewable sources by 2025; 40% of its electricity from renewable sources by 2035; and 70% of its electricity from renewable sources with net zero emissions by 2050.
According to statistics, as of 2023, renewable energy will only account for 19.2% of Malaysia's total energy capacity, and Malaysia's electricity production is heavily dependent on fossil fuels.
According to the Malaysian Renewable Energy Roadmap, the key initiatives in 2025 are to enhance net metering and explore new business models. The CRESS framework mentioned above is one of the new business models.
Malaysia's Ministry of Electricity and Water Resources (PETRA) says it expects CRESS to generate more than MYR10 billion (R16.9 billion) in direct investment and create nearly 14,000 new jobs in the sustainable energy sector.
Source: https://mp.weixin.qq.com/s/v0O_oJ9EeBK5P_OU5lh8jQ
