Empowering Corporate Renewable Energy Adoption in Malaysia: Insights from ACEC’s Kuala Lumpur Roundtable
On October 11, the Asia Clean Energy Coalition (ACEC), in partnership with SEMI Southeast Asia and SEMI Energy Collaborative (EC), hosted a pivotal roundtable in Kuala Lumpur, Malaysia. This event brought together critical stakeholders, including PETRA (Kementerian Peralihan Tenaga dan Transformasi Air), Suruhanjaya Tenaga (Energy Commission), Jabatan Single Buyer, and leaders from the semiconductor ecosystem. The shared goal was clear: to identify pathways for advancing cost-effective and diversified renewable energy procurement options in Malaysia—a country with immense potential for clean energy transition.
At ACEC, our mission is to enable corporate renewable energy procurement across Asia, helping organizations achieve their decarbonization goals by 2030. Malaysia, with its ambitious target of achieving a 70% renewable energy capacity mix by 2050, represents a vital opportunity to align corporate ambitions with national energy objectives.
Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS) was a focal point of the roundtable discussions. While CRESS signifies notable progress in facilitating corporate access to renewable energy, it also presents significant challenges. High System Access Charges (SAC), which substantially exceed Tenaga Nasional Berhad (TNB) tariffs, create cost barriers that hinder the broader adoption of clean energy. Moreover, the lack of long-term pricing transparency further complicates corporate decision-making, diminishing confidence in renewable energy procurement programs.
Virtual Power Purchase Agreements (VPPAs), such as those under the Corporate Green Power Programme (CGPP), have emerged as an accessible and cost-effective model, largely due to the absence of wheeling fees. However, the program’s future remains unclear amid discussions about its potential replacement by CRESS. Even within the CGPP framework, current limitations—such as the 30MW project size cap and the requirement to match a customer’s declared maximum demand—restrict corporate buyers from addressing a substantial portion of their energy needs. These constraints highlight the critical need for greater flexibility and streamlined administrative processes to unlock the program’s full potential.
From ACEC’s perspective, the solution lies in advocating for a diversification of procurement mechanisms that prioritize cost-effectiveness and flexibility. By expanding options to include tailored VPPAs, PPAs, and other innovative models, corporations can adopt clean energy strategies that align with their operational and financial realities. Additionally, ACEC emphasizes the urgency of addressing SAC-related challenges, including advocating for fixed SAC rates throughout PPA terms and ensuring transparency in cost projections. These measures would provide corporations with the predictability they need to confidently invest in clean energy procurement.
Malaysia represents a strategic market for many ACEC members, who are eager to expand their renewable energy procurement efforts within the country. By championing diversified procurement options, transparent policies, and competitive pricing structures, ACEC can play a key role in helping Malaysia unlock its renewable energy potential and cement its position as a leader in regional clean energy transitions.
The Kuala Lumpur roundtable reaffirmed ACEC’s belief that collaboration, innovation, and targeted advocacy are essential to accelerating corporate renewable energy adoption. As Malaysia advances its energy transition, ACEC remains committed to supporting this transformation and ensuring that corporations play a central role in driving sustainable energy solutions. Together, we can align corporate ambitions with national goals and pave the way for a cleaner, more resilient energy future in Malaysia and beyond.
