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Published on:
- 24 May 2025
CRESS Malaysia vs. Corporate Green Power Programme: Which Renewable Energy Initiative is Right for You?
Understanding Corporate Renewable Energy in Malaysia
In Malaysia, businesses are becoming more sustainable in terms of corporate renewable energy, and are currently provided with more than one compelling option to choose from, between CRESS Malaysia and the Corporate Green Power Programme (CGPP). These programs provide different factors for businesses to access corporate renewable energy in Malaysia. To further elaborate the factors and differences, this guide will assist you on how to make the most suitable based on your company’s requirements.
What is CRESS Malaysia?
CRESS Malaysia (Corporate Renewable Energy Supply Scheme) aims to simplify access for businesses to receive renewable energy. It was introduced as a component of Malaysia’s goal to attain renewable energy by 2050, to persuade businesses to purchase industrial solar panels straight from renewable energy developers through the country’s electrical grid. This plan makes it easier for businesses to physically enter into power purchase agreements (PPAs) with developers. Accordingly, consumers are guaranteed a smoother delivery of electricity as it passes through the grid.
Furthermore, CRESS is particularly beneficial for organizations with strong environmental, social, and governance (ESG) commitments. It offers flexibility by enabling several developers to supply energy to a single business or vice versa. Although the competitive pricing of renewable energy may not guarantee immediate cost savings, the long-term advantages, such as lower carbon taxes and improved sustainability credentials, have become the primary option for businesses.
What is the Corporate Green Power Programme (CGPP)?
Whereas, the Corporate Green Power Programme (CGPP) provides a different path to the use of renewable energy by means of virtual power purchase agreements (VPPAs). Through this initiative, businesses are able to purchase electricity into the national grid while also having access to purchase solar energy from developers indirectly. Above all, the financial transactions under CGPP will guarantee the price stability between developers and corporate buyers.
In fact, the CGPP is designed for businesses mainly in the manufacturing and service sectors. Indeed, peninsular Malaysian businesses with surplus land may be given the opportunity to lease their property for solar systems or work together on collaborative projects with solar developers. So by utilizing CGPP, it offers businesses a simplified method that particularly focuses on ESG objectives and aims to reduce the risks connected to carbon price regimes.
Key Differences Between CRESS Malaysia and CGPP
While both programs favor the transition to business renewable energy, they are different in strategy and advantages:
- Eligibility: CRESS is available to more businesses; CGPP is more suited to manufacturing and service sector companies.
- Energy Sourcing: CRESS has physical PPAs, allowing greater latitude in controlling the source of electricity. CGPP employs virtual contracts, streamlining logistics.
- Financial Impacts: CRESS will incur higher costs in initial capital expenditures but gives greater control over energy procurement. CGPP will be able to stabilize prices through virtual financial deals but savings will be less than short-term.
- ESG Alignment: Both initiatives are in support of ESG objectives, but CGPP would appeal more to those companies looking for lower operating risk.
Conclusion
Malaysia’s push for corporate renewable energy, through CRESS Malaysia and the Corporate Green Power Programme (CGPP), provides businesses with significant tools for reducing carbon footprints and meeting ESG targets. Choosing the proper program and solar partner makes all the difference.
Milieu Solar is a trusted provider of dependable, high-quality solar solutions to companies in Malaysia. Whether you’re launching a large-scale project or looking for customized business solutions, we’re here to help you go green with confidence.
Are you ready to make the switch? Contact Milieu Solar today to receive a free quotation and begin your journey toward a more sustainable future.
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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