Malaysia has lowered fees for renewable energy procurement to enable greater access for businesses and raise local demand.
The government will lower charges under the Corporate Renewable Energy Supply Scheme (Cress) to 0.20 ringgit/kWh ($0.04/kWh) from 0.25 ringgit/kWh for firm power supply, and to 0.40 ringgit/kWh from 0.45 ringgit/kWh for non-firm options that provide intermittent supply, according to Malaysia's energy transition and water ministry (Petra). The Cress programme allows customers to source renewable energy directly from generators via the national grid.
Fees will be lowered from 0.15 ringgit/kWh to 0.09 ringgit/kWh for the Community Renewable Energy Aggregation Mechanism (Cream) programme, meant for smaller green electricity sources such as household rooftop solar panels.
The new charges apply until the end of 2027, or the end of Malaysia's fourth regulatory period for its energy sector, according to Petra.
The new rates come on the back of a wider national energy tariff revision in July, which includes incentives for adopting energy efficiency measures and an expansion of time-based electricity pricing.
The Malaysian government aims to reach 70pc renewable energy capacity in its national electricity supply by 2050, up from its goal of 31pc by 2025.
Malaysian solar 2025 international renewable energy certificates (I-RECs) are currently trading at $4.20/MWh, according to the latest Argus assessment. This is up from about $3.30-3.70/MWh in 2024.
