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Published on:
- 22 May 2025
CRESS Malaysia vs. Corporate Green Power Programme: Which Renewable Energy Initiative is Right for You?
As businesses in Malaysia increasingly prioritize sustainability and seek effective corporate renewable energy solutions, two prominent initiatives stand out: CRESS Malaysia and the Corporate Green Power Programme (CGPP). Both schemes offer valuable pathways toward adopting renewable energy, but understanding their differences will help you select the most suitable option for your organization. In this guide, we will explore these programs to support your company’s renewable energy goals.
What is CRESS Malaysia?
The Corporate Renewable Energy Supply Scheme (CRESS Malaysia) is designed to simplify renewable energy procurement for businesses. Introduced as part of Malaysia’s ambitious renewable energy targets for 2050, CRESS allows businesses to directly purchase renewable electricity, particularly industrial solar power, from certified developers through the national electrical grid. Companies enter into physical Power Purchase Agreements (PPAs) that guarantee reliable and seamless renewable energy delivery.
CRESS is especially beneficial for companies deeply committed to their Environmental, Social, and Governance (ESG) targets. It offers flexibility, permitting multiple developers to supply energy to a single business or allowing one developer to serve multiple businesses. While initial costs may not lead to immediate savings, the long-term benefits—such as reduced carbon taxes and stronger sustainability credentials—make CRESS a highly attractive option.
What is the Corporate Green Power Programme (CGPP)?
In contrast, the Corporate Green Power Programme (CGPP) offers businesses a virtual approach through Virtual Power Purchase Agreements (VPPAs). Under CGPP, companies purchase renewable energy indirectly, adding renewable electricity into the national grid while securing stable pricing arrangements with renewable energy developers.
CGPP primarily serves businesses in the manufacturing and service sectors, especially those in Peninsular Malaysia. Companies with surplus land can further benefit by leasing property for solar installations or collaborating with solar developers on joint projects. CGPP emphasizes ESG compliance and minimizes financial risks associated with carbon pricing mechanisms, ensuring predictable renewable energy costs.
Key Differences Between CRESS Malaysia and CGPP
While both initiatives support corporate renewable energy, they cater to distinct business needs and strategic preferences:
- Eligibility:
- CRESS: Broader eligibility across sectors.
- CGPP: Primarily suitable for manufacturing and service sectors.
- Energy Procurement:
- CRESS: Involves physical PPAs providing direct control over renewable energy sourcing.
- CGPP: Employs VPPAs simplifying logistics with indirect energy procurement.
- Financial Considerations:
- CRESS: Higher initial investment with long-term control over energy sourcing.
- CGPP: Provides price stability through financial agreements, albeit with moderate short-term savings.
- ESG Alignment:
- Both support ESG goals; however, CGPP offers reduced operational risk and greater price certainty.
Conclusion
Malaysia’s commitment to corporate renewable energy through initiatives like CRESS Malaysia and the Corporate Green Power Programme equips businesses to effectively meet their sustainability objectives. Choosing the right program hinges on your company’s specific needs, industry sector, financial preferences, and ESG targets.
At Milieu Solar, we deliver dependable, high-quality solar solutions customized to your business’s needs. Whether you’re exploring large-scale solar projects or tailored renewable energy solutions, we are here to help you navigate your green energy transition with confidence.
Ready to choose the best renewable energy program for your company? Contact Milieu Solar today to receive a free consultation and kickstart your journey toward sustainable, clean energy.
Milieu Solar, Solar Solution Specialist in Malaysia, empowering individuals and businesses to achieve sustainable energy independence while enhancing their ESG portfolio through specialized solutions, effectively reducing electricity bills and addressing climate change concerns, saving the planet for future generation.
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