Articles
CRESS vs CREAM: Key Differences in Malaysia’s Green Energy Framework
As Malaysia accelerates its energy transition agenda, 2 key mechanisms have emerged to facilitate corporate and community access to renewable energy: the Corporate Renewable Energy Supply Scheme (CRESS) and the Community Renewable Energy Aggregation Mechanism (CREAM). While both schemes aim to promote the adoption of green energy through open access to the electricity grid, they differ in their design, target users, and implementation frameworks.
The table below provides a side-by-side comparison of the key features of CRESS and CREAM to help stakeholders better understand their respective structures and regulatory requirements.
| Aspect | CRESS | CREAM |
|---|---|---|
| Objective | Promote the adoption of green energy amongst commercial consumers by allowing participants to supply or purchase electricity through open access to the grid network system with a predetermined system access charge. | Promote adoption of green energy amongst domestic and commercial consumers by allowing participants to supply or purchase electricity through open access to the grid network system with a predetermined community access charge. Enables homeowners to lease their rooftops to local renewable energy developers for purposes of the installation and operation of rooftop solar photovoltaic systems |
| Target Users | Businesses | Homeowners and businesses |
| Energy Source | Ground-mounted or Rooftop | Rooftop |
| Access Charge | System Access Charge Firm Output : RM0.25 per kWh Non Firm Output: RM0.45 kWh | Community Access Charge RM0.15 per kWh |
| Capacity | Minimum : 30MW | Minimum : 100kWp Maximum : 2MWp |
| Geographical Limitation | Not applicable | Distance between solar plant and green consumer must be located within 5km radius |
| Equity Structure | 51% local ownership | 51% local ownership |
| Legal Arrangement | Site Leasing Agreement Bilateral Energy Supply Contract Renewable Energy System Access Agreement Corporate Renewable Energy Supply Agreement New Enhanced Dispatch Arrangement Backfeed Agreement | Roof Leasing Agreement Bilateral Energy Supply Contract Community Renewable Energy Aggregation Mechanism Agreement New Enhanced Dispatch Arrangement Distribution Renewable Energy Access Agreement |
| Ownership of Green Attributes | Belongs to developers but may be transferred to green consumers in accordance with the Bilateral Energy Supply Contract | Belongs to Local Energy Generator and Aggregator (“LEGA”) but may be transferred to green consumers in accordance with the Bilateral Energy Supply Contract |
| Application Commencement Date | 30 September 2024 | 1 June 2025 |
Conclusion
As Malaysia advances toward its renewable energy goals, both CRESS and CREAM offer distinct mechanisms to facilitate access to green electricity. While CRESS provides utility-mediated structure for corporate buyers, CREAM opens the door to more community-driven participation through innovative aggregator models.
Each mechanism carries its own legal, technical, and commercial considerations. For stakeholders whether corporates, developers or green consumers, understanding these differences is key to selecting the structure that best supports your objectives. With the renewable energy landscape evolving rapidly, it is important to stay informed and prepared to respond to regulatory developments and contractual complexities.
This Article is written by Yeo Shu Pin (Partner) of Messrs. Shu Pin & Associates.
Disclaimer: Every attempt to ensure the accuracy and reliability of the information provided in this publication has been made. This publication does not constitute legal advice and is not intended to be used as a substitute for specific legal advice or opinions. Please contact the author(s) for a specific technical or legal advice on the information provided and related topics.