Another incentive for companies to go for green power

PUTRAJAYA: The Government has introduced the Corporate Green Power Programme (CGPP) to encourage more companies in the country to use green electricity by installing solar photovoltaic (PV) systems.

Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan said the CGPP would enable companies operating here to achieve their Environmental, Social and Governance (ESG) commitments through the Virtual Power Purchase Agreement (VPPA) mechanism with a total quota of 600MW.

“It is also capable of maintaining existing companies, as well as attracting other international companies, to invest in Malaysia,” he said when announcing the programme here yesterday.

Previously, companies in Malaysia could fulfil their commitment to use green electricity through the Net Energy Metering and Self Consumption programmes.

Besides that, he said, companies could also buy the Renewable Energy Certificates or subscribe to the Green Electricity Tariff.

Takiyuddin said under the CGPP programme, eligible companies could enter into a Corporate Green Energy Agreement (PTHK) with solar energy generators for the sale and purchase of Renewable Energy (RBE) virtually through mutually agreed terms and conditions.

PTHK is a two-way financial hedge agreement detailing a pricing structure agreed between a corporate entity and a solar power generator based on the value or financial benefits available through the reduction of greenhouse gas emissions derived from solar power generation.

“The signing of a financial hedge contract between a corporate company and a solar power generator will enable the generator to participate in the electricity market operated by a Single Buyer through the New Enhanced Dispatch Arrangement mechanism,” he told Bernama.

He said the agreement would reduce the risk borne by solar energy generators due to fluctuations in electricity market prices; and enable corporate companies to get a virtual supply of green electricity at a fixed price for a long period.

He said the company would also obtain a Renewable Energy Certificate from solar power generators to increase its ESG commitments.He said applications for participation in the CGPP programme would open from Nov 7 to Dec 31, or until the quota had been distributed.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Nation

Strengthening national social insurance framework covers comprehensive development of individuals, country, says Anwar
Kaamatan Festival, Gawai Day showcase Malaysia's cultural diversity to the world, says King
Malaysia maintains top spot as premier destination for Muslim travellers in GMTI report
Penang assembly passes motion supporting ICJ's order to halt offensive in Rafah
Johor BN convention on June 8, unity among component parties primary focus, says Ahmad
Zahid calls those who did not sit for SPM 2023 to venture into TVET
FedEx plans to expand business in Malaysia, says Anwar
Perhentian Marriott & Spa set to create new jobs and businesses for locals
Ex-AmBank CEO tried to cover up misconduct, says Zeti
Lineup mostly made up of lawyers to head Penang Appeals Board

Others Also Read