Malaysian plan allows companies to buy renewable energy on the grid from developers – SPE

Malaysia‘s PETRA has issued the regulatory framework for its Corporate Renewable Energy Supply Scheme (CRESS).

The program allows companies to purchase green energy directly from renewable energy developers through Malaysia’s national grid. It officially opened on September 20, but was first announced in July.

PETRA has recently been published guidelines outline the eligibility criteria for both companies looking to buy electricity and developers looking to sell electricity.

Developers must register their projects and declare their energy yield, which must correspond to the maximum electricity they sell. Developers may serve multiple companies and companies may purchase green energy from more than one developer, up to a maximum capacity specified by the local electricity company (EUC).

The EUC will ensure that both developers and companies involved in an agreement are connected to the electricity grid. It will also carry out the billing process, which will be based on meter readings and will take place monthly.

The program is expected to lead to a longer-term shift away from power purchase agreements (PPA) in Malaysia. It builds on previous renewable energy incentives introduced by the Malaysian government, such as the Corporate Green Power Programallowing businesses and corporations to sign virtual PPAs with renewable energy developers.

In July, PETRA estimated that CRESS would generate more than MYR10 billion in direct investment and create nearly 14,000 new jobs in the renewable energy industry. The ministry has said it is confident that the program “will support and catalyze energy transition objectives and the development of the electricity supply sector.”

Malaysia has set a target to increase the share of renewable energy in its electricity mix to 40% by 2035 and 70% by 2050.