KUALA LUMPUR (July 26): The government is en route to open up third-party access to Malaysia's electricity grid, with the launch of the Corporate Renewable Energy Supply Scheme (CRESS) from September, focusing on green electricity supply.

This means an electricity buyer can negotiate pricing directly with a renewable energy power plant for green electricity supply, according to a statement by the Ministry of Energy Transition and Water Transformation.

However, the statement did not elaborate on the charges that will be imposed for third parties to access the grid.

The programme will be open for new renewable energy power plants, focusing on those that are able to provide firm output. Higher access system charges will be imposed on those without firm output, the statement said.

On the consumer side, it is open for new electricity customers of medium and high voltage, and for existing electricity customers - but only covers additional electricity demand.

Another requirement is direct electricity connection through the grid between the power plant and the customer.

“The single buyer and grid system operator will play the role of the market and system operator,” the statement said.

“Tenaga Nasional Bhd (KL:TENAGA) or TNB will continue to play its role as the electricity utility supplier that will supply electricity generated to consumers consistently within and outside of the period where green electricity is supplied,” the statement read.

“The programme is expected to de-risk and reduce costs of national electricity supply, and provide a fair opportunity for healthy competition among [green energy] developers,” the statement added.

“This approach will also attract more local renewable energy industry players.

“The focus of renewable energy in the future will transition from the power purchase agreement model to CRESS,” it added.

The move signals an opening up of Malaysia's grid, currently owned and operated by TNB under a regulated business model that regulates its pricing to customers, as well as the capital expenditure allowed each year.   

Further explanations on the procedures and guidelines will be made to industry players by the Energy Commission, the statement said.

CRESS adds to other green energy programmes facilitated by the government over the years. 

This includes the net energy metering (NEM) and self-consumption (Selco) programme involving on-site solar panel installations by residential and non-residential consumers.

Consumers can also procure green energy certificates by purchasing them via the Malaysia Green Attribute Tracking System (mGATS), or acquire green electricity quotas from the grid by paying the additional Green Electricity Tariff (GET). 

The government has also launched the Corporate Green Power Programme (CGPP) in 2022 to allow plant-up of new renewable energy plants based on demand, but without implementing the grid's third-party access.

On a larger scale, Malaysia launched its fifth and largest large scale solar (LSS) programme this year with 2,000MW capacity up for bidding. The bidding process closed this week, and winners can be expected to be announced before year end.

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