Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS) – Third Party Access to the Electricity Grid and Direct/Bilateral Power Purchase Arrangements

After much anticipation, the Government of Malaysia (through the Ministry of Energy Transition and Water Transformation) had, on 26 July 2024, announced the introduction of the Corporate Renewable Energy Supply Scheme (“CRESS“). CRESS is essentially a third party access framework which will allow renewable energy power producers (“REPP“) to access and utilise the grid system (by paying an access fee) to deliver energy directly to corporate consumers (“CC“). CRESS is expected to allow REPP and CC to negotiate and agree on a rate for the physical delivery of energy. CRESS will be regulated by the Energy Commission of Malaysia, with the Single Buyer and Grid System Operator playing important roles as market and system operators.