Clean Energy Blog, Xnergy Blog
CGPP vs. CRESS: Unlock the Ways to Achieve 100% Renewable Energy for Malaysian Businesses
11 Nov 2025Every country may need a push factor to drive the country economy to grow, especially in this fast-moving solar energy industry.
The pressure on Malaysian corporations to meet the requirement and standard set by Bursa Malaysia in driving the ESG (Environmental, Social, and Governance) towards the company operation and country initiatives – National Energy Transition Roadmap (NETR) is stronger than ever. For years, companies have look to the government schemes to maximise their benefit while committing in the renewable energy action.
A quick overview for CGPP and CRESS
CGPP (Corporate Green Power Programme) is a Virtual Power Purchase Agreement (VPPA) scheme where it is no physical delivery of energy from the Renewable Energy (RE) Developer to the Green Consumers. CGPP launched in 2022 with a fixed 800MW quota announced by the Energy Commission, allowed Green Consumers to sign a VPPA under CGPP to purchase additional renewable energy beyond their own generation, often to cover remaining load or other facilities.
CRESS (Corporate Renewable Energy Supply Scheme) also known as the successor of CGPP, the scheme builds to expand and liberalize the green energy market, addressing the limitations of the previous CGPP programme. Under CRESS, the Green Consumers are eligible to purchase green electricity from RE Developer through the grid, the Third-Party Access (TPA) under New Enhanced Dispatch Arrangement (NEDA) guideline.
The Key Differences
| Feature | CGPP | CRESS |
| Project size | 5–30 MW/ solar plants, allocated quota is 800 MW. | Minimum 30 MW/ projects, no limited quota announced. |
| Type of Supply | Virtual power purchase — no physical delivery to consumer. | Physical supply via grid to consumer’s premises. |
| Target User | Green Consumers that want green energy but can’t install solar system on their premises. | Green Consumers that want to directly receive RE via the TNB grid. |
| Contract Type for Green Consumers | Virtual Power Purchase Agreement (VPPA) between RE Developer and Green Consumers. | 1. Corporate Renewable Energy Supply Agreement (CRESA) with Electricity Utility Company; 2. Bilateral Energy Supply Contract between RE Developer. |
| Billing | 1. Normal TNB bill for actual consumption; 2. Separate VPPA payment to RE developer. | Single electricity bill from TNB (including RE supply & system access charge). |
| System Access Charge (SAC) | Not applicable | RM0.20/kWh (firm), RM0.40/kWh (non-firm) |
| Quota Allocation | 800MW only | No quota set |
Under both schemes, businesses are eligible to reduce their company electricity bill in a long-run (a contract of 21 years), hedge against the raw materials inflation potentiality and less dependent on natural resources. The businesses able to increase their corporate image while showing the effort in driving and committing into renewable energy action together with the government initiatives.
Both CGPP and CRESS represent Malaysia’s ongoing efforts to accelerate corporate participation in renewable energy. The CGPP quota has fully subscribed on 8 November 2023, now is the time for businesses to explore CRESS participation, align with national decarbonisation goals, and lead the way in powering Malaysia’s green energy future.
Info Sources:
1. Portal Rasmi Kementerian Ekonomi - National Energy Transition Roadmap (NETR)
2. Single Buyer – Corporate Green Power Programme (CGPP)
3. Suruhanjaya Tenaga – Third Party Access System (TPA)
4. Suruhanjaya Tenaga – Press Release from PETRA – System Access Charge for CRESS and Community Access Charge for CREAM Reduced by Up to 40%
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