How to Apply for the Corporate Renewable Energy Supply Scheme (CRESS)
The Corporate Renewable Energy Supply Scheme (CRESS) is a strategic initiative by Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA) to increase corporate access to renewable electricity through an open grid access system in Peninsular Malaysia. Through the TPA (Third Party Access) framework, CRESS enables third parties—like renewable energy developers and corporate consumers—to buy or sell electricity via the national grid network. In exchange, third parties are required to pay for the accessing fees, as known as “wheeling-charges” or “System Access Charge (SAC)”.
1. How it works?
You = Green Consumer/Buyer
An owner or tenant of a property who demands for clean electricity supply. Green Consumer must be an existing customer of TNB in Peninsular Malaysia.
Solarvest = RE Developer/Owner of Green Energy Plant
RE plant owner whose plant is connected to the Grid under CRESS and to supply electricity generated from Green Energy Plants to Green Consumers through the Grid.
TNB = Electricity Utility Company & Grid Owner
Owner of the Grid responsible for supplying and distributing electricity in Peninsular Malaysia, whose system is to be connected with the Green Energy Plant and Green Consumer under CRESS.
Single Buyer = Market & System Operator
The administer of CRESS, manage the operation of energy generated. The Single Buyer shall carry out the billing process, including invoicing and collecting the relevant charges from the RE Developer.
Buyer 🡨 Corporate Renewable Energy Supply Agreement (CRESA)1🡪 TNB TNB 🡨 Renewable Energy System Access Agreement (RE SAA)2🡪 Solarvest Solarvest 🡨 NEDA Agreement 🡪 Single Buyer What Will You Get? 1. Green Energy Supply 2. Renewables Energy Certificates (RECs) 1an agreement between Green Consumer and TNB to allow the transfer of electricity from Green Energy Plant to Green Consumer 2an agreement entered between the RE Developer and TNB to allow transfer of electricity generated from the Green Energy Plant to the Grid. | Buyer 🡪 Electricity Bill Payment 🡪 TNB [CRESS] Buyer 🡪 Overall consumption minus CRESS supply 🡪 TNB Buyer 🡪 Agreed Energy Price 🡪 Solarvest Solarvest 🡪 Wheeling Charges 🡪 TNB Calculation: Overall electricity consumed by the Green Consumer (Meter of Green Consumer, MGC) - Electricity supplied by RE Developer (Meter of RE Developer, MRED) = Payment to TNB Total Energy Cost = Clean energy consumed from CRESS/RE Developer + remaining energy consumed from TNB |
Situation 1:
| Total electricity consumed by the Green Consumer | Electricity supplied by RE Developer under CRESS Programme | Energy Consumed from TNB | |
|---|---|---|---|
| Meter of Green Consumer (MGC) | Meter of RE Developer (MRED) | MGC – MRED | |
| Energy Consumed | 300,000 kWp | 100,000 kWp | 200,000 kWp |
| Agreed Tarriff | RM 0.650 / kWh | RM 0.655 / kWh | |
| RM 196,000 | RM 65,000 | RM 131,000 | |
| Total Energy Bill | Payment to RE Developer | Payment to TNB |
Situation 2:
| Total electricity consumed by the Green Consumer | Electricity supplied by RE Developer under CRESS Programme | Energy Consumed from TNB | |
|---|---|---|---|
| Meter of Green Consumer (MGC) | Meter of RE Developer (MRED) | MGC – MRED | |
| Energy Consumed | 200,000 kWp | 200,000 kWp | 000,000 kWp |
| Agreed Tarriff | RM 0.650 / kWh | RM 0.655 / kWh | |
| RM 130,000 | RM 130,000 | RM 0 | |
| Total Energy Bill | Payment to RE Developer | Payment to TNB |
*In the event where MRED is greater than the total of MGC due to Green Consumer’s lower energy usage, the amount of energy greater than MGC shall be deemed as free energy to the Grid
2. Who should apply?
CRESS has introduced relatively premium wheeling charges—45 sen/kWh for non-firm energy output and 25 sen/kWh for firm energy output. By setting this pricing structure, the government has raised the minimum entry bar for corporate consumers, with aims to facilitate the energy transition for high-priority sectors. This approach targets high-energy demand industries, such as data centres and semiconductor manufacturers, to maximise the programme’s impact.
3. What should I choose?
Under CRESS, green consumers have two primary options for the type of electricity supply: 25sen/kwh for firm energy output and 45sen/kwh for non-firm energy output. What does it mean?
| Non-firm Output | Firm Output | |
|---|---|---|
| Wheeling Charges | 45sen/kwh | 25sen/kwh |
| Options | This option provides electricity based on the availability of renewable sources, which may vary throughout the day. It is more flexible, suitable for companies that have adaptable energy needs or backup power solutions in place. | This is a guaranteed supply of electricity with minimal fluctuations. It’s ideal for companies with high energy demands that require consistent power levels, such as manufacturing or data centres. Choosing firm output allows businesses to rely on a steady supply of renewable energy, ensuring operational continuity. |
| Type of Plant | Traditional Solar Farm | Battery Energy Storage System (BESS) -integrated Solar Farm |
| How it works? | Non-firm Solar Generation |   |
Did you know? Non-firm output is charged at a higher rate (45 sen/kWh) compared to firm output (25 sen/kWh) due to the associated challenges of energy security and grid management.
Energy Security and Grid Intermittency: Non-firm output depends on the availability of renewable energy sources, which can fluctuate throughout the day based on factors like weather and sunlight. This variability introduces challenges for grid operators, as they need to maintain balance and stability even when renewable supply dips unexpectedly. To manage these risks and maintain a secure energy flow, non-firm output incurs a higher wheeling charge to offset the costs of additional backup power and grid stabilisation measures.
Consistent Supply with Firm Output: Firm output provides a stable, reliable energy supply, ensuring that power levels are consistent and uninterrupted. This consistency allows grid operators to plan and distribute energy more efficiently, reducing the need for expensive backup systems. Additionally, firm output typically involves dedicated equipment and technologies, such as battery storage, that support continuous delivery, further enhancing reliability. The lower wheeling charge for firm output reflects these efficiencies and the reduced strain on the grid.
By structuring the charges this way, CRESS incentivises businesses to opt for firm output where possible, supporting a more stable grid while balancing the integration of renewable energy.
4. Why do I need CRESS?
CRESS offers a hedge against the future hike in green electricity prices. While current green electricity prices range from RM 0.537 to RM 0.555 per kWh, projections indicate an increase to RM 0.637–0.655 per kWh. CRESS’s proposed prices of RM 0000000 per kWh (firm output) and RM 0000000 per kWh (non-firm output) allow businesses to lock in rates and protect themselves from escalating costs.
| Current Green Electricity Price | Future Green Electricity Price | |
|---|---|---|
| RECs Price (GET) | RM 0.200 / kWh | RM 0.300 / kWh |
| Peak TNB tariff | RM 0.337 – 0.355 / kWh | RM 0.337 – 0.355 / kWh |
| Total | RM 0.537 – 0.555 / kWh | RM 0.637 – 0.655 / kWh |
| CRESS Programme | Firm output | Non-firm output |
|---|---|---|
| TNB Distribution Charges | RM 0.250 /kWh | RM 0.450 /kwh |
| Proposed Price |  |  |
Although the initial rates under CRESS may seem slightly higher than current green electricity prices, they are structured to remain stable over the long term, potentially leading to cost savings as market prices increase. The predetermined system access fee provides financial stability and transparency. Companies can forecast their energy expenses, making it easier to plan budgets and understand the cost impact of transitioning to renewable energy. By participating in CRESS, companies can achieve significant reductions in their carbon emissions, enhancing their sustainability profile and ESG ratings.
Is switching from Non-Firm to Firm Over Time allowed?
Not allowed. Flexibility cannot be granted, as it must be declared during the application stage. Allowing this switch could affect the recovery cost payments for Battery Energy Storage Systems (BESS) to the grid.
5. How to Apply?
Step 1 – Identify Your Renewable Energy Needs: Evaluate your business’s current energy usage and determine the amount of energy you need from CRESS to meet your sustainability targets.
Step 2 – Appoint a RE Developer and Choose Your Plan: Select an approved RE Developer to produce and deliver renewable energy to your business. Working with a reliable and experienced developer like Solarvest will ensure the successful commissioning of clean energy plant in accordance with CRESS guidelines.
Step 3 – Sign a Bilateral Energy Supply Contract: As a green consumer, you’ll need to enter into a bilateral agreement with the RE Developer. This contract formalises the terms of your energy purchase, including pricing, duration, and energy delivery details.
“And then?”
Once you’ve signed the contract, Solarvest as your trusted RE developer will handle the rest, from completing the application, setting up the clean energy infrastructure to delivering the agreed clean power supply. You can sit back and focus on your core business while your CRESS energy is seamlessly managed and delivered to you.
6. CRESS Application Process
You can start applying for CRESS from 30 September 2024. Contact Solarvest today or call our hotline 1700-81-4611 to discover how we can help your business prepare for and benefit from the CRESS program.
Not sure if CRESS is right for you? Don’t worry—our team will provide all the required information for you to make the informed choice. Contact us here.
Frequently Asked Questions
- Can I connect an existing green energy plant to Grid under CRESS?
- No.
- My company is registered under Kuala Lumpur address, can I apply for my property in Sabah and Sarawak?
- No.
- My company is registered under Sabah and Sarawak address, can I apply for my property in Kuala Lumpur?
- Yes.
- What is the requirement of CRESS Consumer?
- New customer of TNB Retail.
- Existing customers can only participate by requesting additional load of 100MW, which will be the final load of their existing supply contract.
- Registered high voltage and medium voltage consumer.
- Can I apply for another CRESS demand if I am found short?
- After the lock-in period, the consumers are not allowed to participate in CRESS;
- eligibility is limited to those with new demand that qualifies under the programme.
- Who will own the RECs under CRESS?
- RE Developer will have ownership of the RECs. However, it can be transferred to Green Consumer(s) in pursuance of a Bilateral Energy Supply Contract
- When is the deadline of the application?
- There’s no deadline specified in the guideline. Buyers can start applying for CRESS beginning on 30 September 2024.
- I am a buyer; can I submit the application by myself?
- Technically, no. The RE Developer is responsible to submit the application on behalf of the Green Consumers.
- What is needed for the CRESS application?
- Company profiles of the RED and the Consumer(s) and all relevant supporting documents;
- Supply category for the Plant (firm or non-firm output)11;
- Details of the Plant including project costs, preliminary technical specifications, drawings and project schedule12;
- Monthly export energy and allocation to each Consumer;
- Letter of undertaking in relation to CRESS;
- Power system study report and letter of approval;
- Copy of land lease or land sale and purchase agreement;
- Copy of the executed Bilateral Energy Supply Contract between the RED and each Consumer;
- Default declaration document by the RED and the Consumer(s);
- Decommissioning plan setting out the required details as described above; and
- Any other documents prescribed by the Single Buyer.
- Besides Battery Energy Storage System (BESS), can I opt for other multi-technology to firm up CRESS output?
- Only battery energy storage technology is allowed to firm up intermittent output with SAC of 25 sen/kWh if the battery is developed by RE developer.
Still feeling uncertain about CRESS? You’re not alone. Let us answer your questions and show you how CRESS can unlock sustainable energy for your business. Get in touch with us here!