Malaysia's CRESS scheme faces demand doubts as new 4-sen/kWh charge raises cost concerns

Malaysia's Energy and Water Transformation Ministry unveiled a four-sen per kilowatt-hour System Access Charge for green consumers as part of the CRESS acceleration package, sparking concerns among renewable energy developers about future rate hikes each regulatory period. A developer director warned that green consumers may resist the charge, preferring a fixed tariff over a decade or two, which could depress demand for the scheme.

Despite the tighter economics, Cypark Resources' chief investment officer noted that the combined 18 sen/kWh charge stays below the earlier 20 sen/kWh level and that the 14 sen/kWh developer portion is locked for ten years, providing cost certainty for large users such as data centres. After the September announcement, shares of firms like Solarvest Holdings, Samaiden Group, Northern Solar Holdings, Pekat Group and Cypark rose sharply, but the October clarification caused most to retreat, with only Cypark briefly rebounding before slipping again. Executives from Cypark and Pekat argue that the scheme remains viable if transparent review mechanisms and caps on future adjustments are put in place, ensuring both developers and consumers can plan with confidence.