Malaysia Sets New CRESS Charges for Renewable Energy Developers and Green Consumers

KUALA LUMPUR, October 15, 2026 — Malaysia has introduced a revised charging structure under the Corporate Renewable Energy Supply Scheme (CRESS) Acceleration Package (CAP), setting a fixed System Access Charge (SAC) of 14 sen per kilowatt-hour (kWh) for eligible renewable energy developers and a separate 4 sen/kWh charge for green consumers.

The Energy Commission (EC) said the revised structure aims to provide greater cost certainty for renewable energy developers while ensuring a more transparent and equitable allocation of costs and risks between developers and corporate electricity buyers.

Under the new arrangement, the separate CRESS charge for green consumers will be based on the prevailing Regulatory Period 4 tariff. The charge is calculated according to consumers’ electricity consumption and is distinct from the system access charge paid by renewable energy developers.

Ten-Year Contract Requirement and Project Deadline

The fixed SAC arrangement applies to eligible projects that achieve commercial operation by December 31, 2028, subject to the programme’s eligibility criteria and conditions. Participating projects must also commit to a minimum contract period of 10 years.

The revised framework forms part of the CRESS Acceleration Package announced by Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA) on September 18, 2026.

On October 13, the Energy Commission, together with Tenaga Nasional Berhad (TNB), the Single Buyer and the grid system operator, briefed industry participants in Putrajaya on the package’s charging structure and implementation measures.

The fixed-rate arrangement is intended to improve the predictability of grid access costs, support project financing and strengthen the bankability of renewable energy projects. Projects that fail to meet the commercial operation deadline will lose eligibility for the package and become subject to the applicable charges and terms in force at that time.

Improving Cost Transparency and Market Participation

The Energy Commission said the revised structure reflects the different responsibilities and risks undertaken by renewable energy developers and green consumers. Its guiding principles include cost reflectivity, equitable cost allocation, fair distribution of risks and transparency.

During the industry briefing, participants were also provided with explanations of the underlying cost components, the allocation of charges between developers and consumers, and potential savings under the revised arrangement compared with the previous SAC structure. However, the Commission did not disclose a quantified estimate of the savings.

The revised charging mechanism comes as Malaysia seeks to expand corporate renewable electricity procurement while maintaining the stability and fairness of its electricity system. By allowing renewable energy developers to supply electricity to corporate consumers through the existing grid, CRESS provides businesses with an additional route to secure renewable electricity and advance their decarbonisation commitments.

Around 3 GW of Projects in the CRESS Pipeline

The Acceleration Package has attracted encouraging industry interest, with approximately 3 GW of projects in the CRESS pipeline, according to the Energy Commission.

The regulator is also working on further improvements to the programme, covering technical and operational requirements, contractual arrangements, implementation procedures and application documentation.

Supplementary amendments to the CRESS Guidelines incorporating the package, alongside relevant technical and procedural enhancements, are expected to be published by November 2026. The updates are intended to provide greater clarity for market participants, facilitate project implementation and strengthen the overall framework.

As Malaysia continues to develop its renewable energy market, the revised CRESS structure is expected to support private investment and expand corporate access to green electricity, while reinforcing the principle that programme-related costs should be borne fairly by the parties benefiting from the arrangement.