KUALA LUMPUR, Sept. 24 (Xinhua) -- Malaysia's renewable energy projects are expected to gain pace after the government cut the system access charge for firm supply under its Corporate Renewable Energy Supply Scheme (CRESS), according to research houses.
Hong Leong Investment Bank Research said in its recent note that the CRESS Acceleration Package introduced by the Malaysian Energy Transition and Water Transformation Ministry last Friday is expected to spur developers and data center offtakers to accelerate negotiations and lock in projects ahead of the Dec. 31, 2028, deadline.
The research house expects stronger CRESS news flow and deal announcements in the fourth quarter of 2026 and first quarter of 2027, supported by continued expansion of Malaysia's data center sector.
The Malaysian government introduced the CRESS acceleration package, which includes a 30 percent reduction in the System Access Charge (SAC) for firm supply to 0.14 ringgit per kilowatt-hour from 0.20 ringgit, a mandatory ten-year contract between Renewable Energy Developers and Green Consumers, and a requirement for projects benefiting from the special SAC rate to achieve commercial operation by Dec. 31, 2028.
In its recent note, MBSB Research described the package as the most meaningful improvement to the CRESS framework since its introduction, saying the lower charge for firm supply could improve project conversion and expand the pool of commercially viable developments.
The research house said pairing solar generation with battery energy storage systems could smooth intermittency and reduce balancing and reserve requirements on the grid. ■