- CRESS, launched in September 2024 shows slow uptake despite policy innovation
- Clear corporate demand for virtual PPAs, but no word on expanding the 800 MW initiative
From an outside observer’s perspective, the latest research from the Asia Clean Energy Coalition and Clean Energy Buyers Association presents a sobering paradox in Malaysia’s clean energy landscape. While the nation displays ambitious targets and implements ostensibly progressive policies, the devil lies firmly in the execution—creating a textbook case of how well-intentioned frameworks can stumble on fundamental design flaws.
The situation in Malaysia illuminates broader challenges facing Southeast Asian economies attempting to balance energy security with corporate sustainability demands. As Suji Kang, programme director at the Asia Clean Energy Coalition, aptly noted: “Corporate demand for clean energy in Asia is skyrocketing, yet many companies are held back by opaque market rules and limited access to proven procurement tools.” Malaysia’s experience provides a particularly stark illustration of this disconnect.
The Malaysian experience: progress hampered by structural barriers
Malaysia’s renewable energy trajectory shows promise on paper. The country has achieved approximately 25% renewable energy capacity in its national energy mix as of 2023, positioning itself toward its targets of 31% by 2025 and 40% by 2035. Current projections suggest the nation could reach 36.4% renewable capacity by 2035, driven primarily by its substantial hydropower base (69.9% of renewable capacity) and growing solar installations.
However, the CEBA report reveals that Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS), launched in September 2024, has experienced slow uptake (1.3GW in commitments as of mid-2025, per reports). This underwhelming market response contradicts the apparent policy innovation and suggests deeper structural issues at play.
The more telling indicator of market dysfunction emerges from Malaysia’s Corporate Green Power Program (CGPP) experience. The virtual PPA program achieved full subscription of its 800 MW allocation by November 2023 with 32 successful applicants, demonstrating clear corporate appetite for clean energy procurement. Yet instead of expanding this successful initiative to meet obvious demand, Malaysian authorities have offered no public plans for continuation or expansion.
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