CRESS: PETRA refines green energy grid access charges

KUALA LUMPUR: The Ministry of Energy Transition and Water Transformation (PETRA) will hold an engagement session with stakeholders on Thursday, prior to determining the charges for third-party access to Malaysia's energy grid.

Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Datuk Seri Fadillah Yusof, stated that feedback from stakeholders such as government agencies, corporate companies, and non-governmental organizations (NGOs) will be considered before all schemes related to the Corporate Renewable Energy Supply (CRESS) are implemented next month.

"We will gather feedback from stakeholders regarding CRESS before presenting the government's proposals. Regarding third-party charges, these will be finalized after reaching a consensus among stakeholders and industry participants, and with the agreement of all involved sectors," he said during a press conference at the 6th International Sustainable Energy Summit (ISES) 2024 here today. Last month, the government announced a proposal to introduce CRESS starting this September to increase corporate access to green energy supplies. Through the concept of open grid access, third parties (TPA) can supply (sell) or obtain (buy) electricity through the grid network system with a set system access charge. The introduction of the CRESS program is part of PETRA's efforts under the GREENS Madani Initiative, or Government Renewable Energy Enhancement for Niche Sector, aimed at supporting the energy transition aspirations of high-priority sectors.

The supply of electricity will be regulated by the Energy Commission through the Electricity Supply Act 1990 (Act 447), while the Single Buyer (SB) and Grid System Operator (GSO) will serve as market and system operators. Further elaborating, Fadillah said that CRESS implements a concept where TPA can directly sell to buyers using Tenaga Nasional Bhd's (TNB) transmission grid. "When using TNB's transmission grid, there will be a small charge, the amount of which has not yet been finalized. The concept is similar to paying a toll when using certain roads," he said.

He added that through CRESS, the government will continue to accelerate and enhance the implementation of the open grid mechanism, facilitating greater access to green electricity for businesses through third-party or corporate power purchase agreements.

He mentioned that the country will strategically transition from the single-buyer model for renewable energy (RE) development to reduce the risk to the national electricity supply system, encourage greater participation and competition in the energy supply industry, and among RE stakeholders. "This transition will promote a competitive market for renewable energy, leading to cost reductions, increased investor confidence, and accelerated adoption of clean energy technologies."It also encourages the development and utilization of non-solar renewable energy sources such as biogas, biomass, and mini-hydro to diversify power generation sources while ensuring the security and reliability of the energy system," he said. Fadillah said that to strengthen the government's commitment, a Feed-in Tariff (FiT) quota of 190MW for the development of biogas, biomass, and mini-hydro will be allocated through e-bidding. "At the same time, the Sustainable Energy Development Authority (SEDA) Malaysia will conduct a bioenergy cluster study to source green electricity from non-solar sources, which will be allowed under the newly introduced CRESS," he said.

By Mohd Zaky Zainuddin