THE Ministry of Energy Transition and Water Transformation (PETRA) has unveiled an innovative programme aimed at expanding green electricity access in Malaysia.
In a statement today, the ministry said the Community Renewable Energy Aggregation Mechanism (CREAM) Programme, designed to attract high-value investment, will facilitate the aggregation of residential rooftop spaces for solar power generation to supply green electricity to local consumers.
“To guide the initiative and establish a regulatory framework for industry participants, the Energy Commission has released the CREAM Guidelines.
“This programme builds upon the earlier Corporate Renewable Energy Supply Scheme (CRESS) and enables local communities to actively contribute to Malaysia’s energy transition,”
The concept of open grid access is central to the scheme and will be implemented as follows:
Renewable energy generation and the supply of green electricity will occur solely within the distribution network.
Green electricity will be delivered to local consumers via the distribution system owned by Tenaga Nasional Berhad (TNB).
The aggregation of rooftop spaces for solar power generation can be carried out by local renewable energy generators, in line with existing regulations and guidelines issued by relevant authorities.
While, green electricity generated locally can be sold to both commercial and domestic consumers within a 5km radius, including those committed to environmental, social, and governance (ESG) goals, the ministry said.
Notably, the CREAM programme represents Malaysia’s first initiative to aggregate rooftop solar installations for photovoltaic (PV) generation.
PETRA said the programme will be rolled out with the following key components:
- Local Energy Generators and Aggregators (LEGA) will be responsible for developing solar PV systems on the rooftops of aggregated residential properties;
- LEGA will manage all agreements related to rooftop leasing with homeowners, enabling the development of solar PV infrastructure;
- Local Green Consumers (LGC) will have the opportunity to purchase green electricity from LEGA within a 5km radius of the generation source;
- The electricity supplied by LEGA to LGC will be directly connected through TNB’s distribution network, ensuring proper management of electricity supply and demand while allowing for future system planning; and
- To maintain grid stability and minimise disruptions caused by intermittent solar generation, TNB will implement localised balancing solutions.
The CREAM programme provides a new avenue for consumers to meet their ESG commitments, particularly in terms of adopting green electricity.
Furthermore, the programme is designed to be cost-neutral, ensuring that it does not lead to tariff increases for electricity users.
Detailed implementation guidelines for the CREAM programme will be made available on the Energy Commission’s website (www.st.gov.my) starting 28th March 2025.
“PETRA is optimistic that this programme will serve as a catalyst for Malaysia’s energy transition, helping to increase the share of renewable energy capacity to 40% by 2035 and 70% by 2050,” the ministry added. – March 28, 2025
