Malaysia's Energy Transition and Water Transformation Ministry (PETRA) has announced a package of changes to the Corporate Renewable Energy Supply Scheme (CRESS), aimed at improving project bankability and encouraging new renewable energy development, local media reported.

The CRESS, introduced in 2024, is a third-party-access mechanism allowing renewable developers to supply electricity directly to consumers using the national grid, as an alternative to procuring power solely through state utility Tenaga Nasional Berhad.

The PETRA said 11 developers and eight green energy consumers have registered with the scheme since 2024, covering projects with combined capacity of 3.15 GW. The figure represents registered capacity rather than confirmed built or operational projects.

A central element of the reform package concerns the system access charge (SAC), the fee developers pay to use the grid. Under the original 2024 framework, the charge was set at 0.25 ringgit ($0.06)/kWh for firm output and 0.45 ringgit/kWh for non-firm output. These rates were later reduced to 0.2 and 0.4 ringgit in 2025.

Under the new framework, a fixed rate of 0.14 ringgit/kWh will apply to firm-supply projects, alongside a mandatory 10-year minimum contract term between developers and consumers. Projects must achieve commercial operation by December 31, 2028, to qualify for the reduced rate. 

Those missing the deadline will be subject to whatever terms are then in effect, with no extension requests considered. The package is open to both existing registered participants and new entrants meeting its conditions. The ministry said it would work to improve the principles used to set the SAC, aiming for a more transparent charge that reflects actual system costs.

Technical requirements covering solar and BESS configuration, system operation and grid connection will be refined by Malaysia's Energy Commission. Under existing rules, a solar project seeking firm-output classification must pair with a BESS sized at least 50% of the project's export capacity, capable of sustaining output for four consecutive hours.

Malaysia targets 31% renewable capacity by 2025, 40% by 2035 and 70% by 2050 under its National Energy Transition Roadmap.

The reforms come as electricity demand rises, driven partly by data center development. In August 2025, Malaysian clean energy providers Gentari and Gamuda announced a 1.5 GW solar-plus-storage partnership under the framework to supply hyperscale data centers, one of the largest projects under the scheme.