29 August 2025 – Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA) has announced a major adjustment that lowers the cost of procuring renewable electricity for corporates. The System Access Charge (SAC) for the Corporate Renewable Energy Supply Scheme (CRESS) and the Community Access Charge (CAC) for the Community Renewable Energy Aggregation Mechanism (CREAM) have been reduced by up to 40%. This move is designed to accelerate corporate participation in renewable energy procurement and support Malaysia’s target of 70% renewable capacity by 2050.

What Changed

Under the new charges effective immediately:

Programme	Previous Rate (sen/kWh)	New Rate (sen/kWh)	Reduction
CRESS – Firm Supply (SAC)	25	20	↓ 20%
CRESS – Non-firm Supply (SAC)	45	40	↓ 11%
CREAM – Community Access Charge (CAC)	15	9	↓ 40%

PETRA highlighted that the recalibration follows Malaysia’s new tariff schedule effective 1 July 2025 and is aimed at making corporate renewable electricity procurement more competitive and accessible across different customer groups. The “up to 40% reduction” figure refers to the CAC component of CREAM, which fell from 15 sen to 9 sen per kWh. The CRESS SAC reductions are smaller in percentage terms: 20% for firm supply and 11% for non‑firm supply.

Why This Matters for Corporates in Malaysia

Direct Cost Savings

The 5 sen/kWh reduction for CRESS translates into measurable cost savings:

• 10 GWh/year of firm CRESS supply = RM0.5 million annual savings.
• 50 GWh/year of firm CRESS supply = RM2.5 million annual savings.

For large industrial users, especially those in the EHV and UHV categories, the cumulative savings make renewable electricity through CRESS significantly more competitive compared to standard grid supply.

Improved Competitiveness Against Grid Tariffs

With the CRESS firm SAC now at 20 sen/kWh, corporates have greater room to negotiate competitive strike prices. For many EHV and UHV customers, this makes CRESS power a compelling alternative to retail tariffs.

Aggregation Becomes More Accessible

CREAM’s CAC cut from 15 to 9 sen/kWh represents a 40% reduction in the access charge component. While this is not a 40% cut to overall delivered electricity costs, it meaningfully lowers the barrier for smaller consumers and multi-site portfolios that wish to participate in aggregated renewable electricity procurement.

Decarbonisation and Disclosure Alignment

Lower access charges remove one of the key cost barriers to scaling renewable procurement. This makes it easier for corporates to advance Scope 2 decarbonisation and demonstrate progress under frameworks such as RE100, SBTi, and CDP. By enabling wider access to competitively priced renewable electricity, corporates can more credibly align their operations with international climate targets.

Strategic Implications for Decision Makers

• Improved Economics: Projects or supply arrangements that were previously unattractive on cost grounds may now clear internal evaluation thresholds.
• Portfolio Fit: CRESS and CREAM can be combined with onsite PPAs and VPPAs to create a more balanced procurement strategy.
• First-Mover Advantage: Corporates that move early are more likely to capture favourable terms before demand intensifies and capacity tightens.

Moving Forward with Saxon Renewables

As a regional renewable energy project developer, Saxon Renewables views this policy change as a significant turning point. The 5 sen/kWh reduction in CRESS SAC directly addresses one of the recurring cost concerns expressed by corporates. For EHV and UHV customers, CRESS now represents a competitive alternative to grid tariffs. For smaller consumers and multi-site portfolios, the 40% reduction in CREAM’s CAC makes aggregation a viable pathway to 100% renewable electricity.

This development enhances Malaysia’s position as one of the most attractive corporate renewable electricity markets in ASEAN, creating opportunities for both large multinationals and domestic enterprises.

Next Step

Malaysia’s decision to cut access charges for CRESS and CREAM is more than a regulatory adjustment. It is a clear signal that corporate renewable electricity is central to the country’s energy transition. For corporates, this represents a timely opportunity to lock in competitive green power, reduce costs, and accelerate climate commitments.

Saxon Renewables stands ready to support corporates in navigating these new opportunities, ensuring strategies remain credible, cost-effective, and aligned with global best practices.