Govt Introduces CRESS Acceleration Package With SAC Rate Of 14 Sen/kWh

PUTRAJAYA, Sept 18 (Bernama) -- The government has introduced the CRESS Acceleration Package, setting the System Access Charge (SAC) at 14 sen per kilowatt-hour (kWh) for firm green electricity supply to accelerate the development of new renewable energy (RE) capacity in the national electricity system.

The Ministry of Energy Transition and Water Transformation (PETRA) said the package also sets a minimum 10-year contract period between Renewable Energy Developers (REDs) and Green Consumers (GCs), providing long-term cost certainty for developers, corporate consumers and financial institutions.

"To ensure this package truly accelerates the development of new generation capacity, projects wishing to enjoy the SAC rate must achieve their Commercial Operation Date (COD) by Dec 31, 2028 at the latest.

"Should a project fail to achieve COD within the stipulated period, its eligibility under the CRESS Acceleration Package will be annulled, and the project will be subject to the SAC rates and terms in effect at that time. Any application to extend the COD period will not be considered," the ministry said in a statement today.

PETRA said the package was open to REDs and GCs already registered with the Single Buyer, as well as new REDs and GCs willing to meet the stipulated conditions.

CRESS is a Third-Party Access mechanism that allows REDs to supply green electricity to GCs through the existing electricity grid network, providing corporate consumers with an additional option to procure green electricity directly from RE developers.

Since its introduction in 2024, 11 REDs and eight GCs have registered with the Single Buyer, involving a total project capacity of 3,148 megawatts (MW).

"This development indicates encouraging interest from the industry in utilising CRESS as one of the mechanisms for procuring green electricity supply," the ministry said.

PETRA said it had also examined issues raised by industry players, particularly concerning the SAC, project bankability, technical requirements, contract structures and the approval process.

The feedback was obtained, among others, through the CRESS 2026 Strategic Engagement Session on May 25, which involved nearly 200 participants from financial institutions, RE developers, corporate consumers and industry players.

"Accordingly, the government has agreed that the direction for improving CRESS should focus on three main aspects, including simplifying and clarifying procedures and contract structures, which involves setting a minimum contract period of 10 years," it said.

PETRA said the government had also agreed to improve technical requirements covering solar photovoltaic (PV) and Battery Energy Storage System (BESS) configurations, system operations and access to grid connection capacity information.

It said the government would also streamline the SAC determination principles starting from the fifth Regulatory Period in 2028 to ensure a charging structure that was more transparent, reasonable and reflective of actual system costs, without unfairly transferring costs to other electricity consumers.

PETRA said the strengthening of CRESS is expected to increase green electricity procurement options for the corporate sector, stimulate private investment in RE development and help meet growing electricity demand.

"At the same time, the fundamental principles of CRESS will be maintained, namely that programme-related costs must be reasonably distributed to the benefiting parties and not unfairly passed on to other electricity consumers.

"The implementation of these measures reflects the government's commitment to developing a more competitive, transparent and bankable green electricity supply ecosystem, while strengthening the security of electricity supply and supporting the nation's energy transition aspirations," it said.

Meanwhile, Deputy Prime Minister and Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof said the enhancement of CRESS was part of the government's efforts to develop an electricity market that was more open, competitive and responsive to consumer needs.

He said the improvements also took into account the need to ensure increased RE participation was carried out in an orderly manner without compromising the security and stability of the electricity system.

"Hence, the technical requirements related to solar integration, BESS, firming capability and grid connection will continue to be refined by the Energy Commission alongside relevant entities," he said.

Further details on the CRESS Acceleration Package will be provided by the Energy Commission, with information available at www.st.gov.my.

-- BERNAMA