PETALING JAYA: The government is rolling out a new package offering a 14 sen per kilowatt-hour System Access Charge (SAC) for firm green electricity supply to accelerate renewable energy projects and provide greater cost certainty to industry.
In a statement on Friday (Sept 18), the Energy Transition and Water Transformation Ministry (Petra) said the CRESS Acceleration Package would also require renewable energy developers (REDs) and green consumers (GCs) to enter into 10-year contracts.
“The approach aims to provide long-term cost certainty to REDs, GCs and financial institutions and subsequently improve the bankability of projects,” it said.
Projects seeking to benefit from the package must achieve Commercial Operation Date (COD) by Dec 31, 2028.
“If the project fails to achieve COD within the stipulated period, eligibility under the CRESS Acceleration Package will be cancelled and the project will be subject to the SAC rate and terms in force at that time.
“Any application to extend the COD period will not be considered,” it added.
Petra said the package was part of wider improvements to the Corporate Renewable Energy Supply Scheme (CRESS), which allows renewable energy developers to supply green electricity directly to corporate consumers using the existing electricity grid.
Since its introduction in 2024, a total 11 REDs and eight GCs have registered with Single Buyer, involving projects with a combined capacity of 3,148MW.
The ministry said the improvements followed industry feedback, particularly on SAC, project bankability, technical requirements, contract structures and approval processes.
“Among the key matters highlighted was the need to improve the transparency and predictability of SAC to support long-term project financing,” it said.
Under the wider CRESS improvements, the government will also streamline procedures and contract structures, including setting a minimum 10-year contract period, improve technical requirements involving solar photovoltaic systems and battery energy storage systems, and improve the principles for setting SAC from the fifth regulatory period beginning in 2028.
Deputy Prime Minister and Energy Transition and Water Transformation Minister Datuk Amar Haji Fadillah Haji Yusof said the improvements were part of the Government’s efforts to develop a more open, competitive and responsive electricity market.
Petra said the measures would also ensure increased renewable energy participation was carried out in an orderly manner without affecting the safety and stability of the electricity system.
It said strengthening CRESS would increase green electricity procurement options for the corporate sector, stimulate private investment in renewable energy development and help meet growing electricity demand.
