The commencement of Malaysia’s Corporate Green Power Programme (‘CGP Programme’) in November 2022 marked the introduction of the corporate virtual power purchase agreement in Malaysia¹. The CGP Programme, which provides corporations with the opportunity to reduce their carbon footprint, has been well-received in the market. However, the initial application closing date of 6 February 2023, which was subsequently extended to 20 March 2023, arguably made participation challenging for interested companies, as they were required to fulfil a number of conditions within a short timeframe.
 
On 4 March 2023, the Energy Commission announced updates to the CGP Programme² in line with the statement made by the Minister of Natural Resources, Environment and Climate Change, Nik Nazmi Nik Ahmad (‘Minister’) during the launch of the Malaysia Energy Transition Outlook report. These updates appear to address feedback from the industry with regards to the application timeframe as well as the keen interest in the CGP Programme.
 
Additional 200MW Quota for CGP Programme
 
The CGP Programme had an initial quota of 600MW. An additional quota of 200MW will now be allocated, thus bringing the total quota for the CGP Programme to 800MW. The Energy Commission has stated that such quota is in line with the Malaysian Government’s target to increase the share of renewable energy in the country’s installed capacity to 31% by year 2025.
 
Longer timeframe for submitting applications under the CGP Programme
 
The Energy Commission had previously announced that applications for allocation of the additional 200MW quota under the CGP Programme could be made from 3 April 2023. However, the Energy Commission has since issued a statement on 31 March 2023³ that the commencement date would be postponed to 9 May 2023. This postponement was pursuant to their review of the total quota of the CGP Programme, which is on one of the largest in Malaysia’s renewable energy programmes.
 
Applications can be made throughout the year until 31 December 2023, or until the quota is fully taken up. This allows interested companies more time to fulfil the conditions for participation in the CGP Programme. The longer application timeframe will certainly be welcomed news, as a number of the conditions for participation such as procurement of land rights and preliminary work for the development of the new power plant will require extensive effort and time.
 
Non-Solar Renewable Energy Resource Developers may participate
 
The CGP Programme was initially only available for solar power plant developers. Participation will now be extended to non-solar renewable energy resource developers.
 
The Energy Commission is currently studying the participation by non-solar renewable energy resource developers and have stated that the framework for the same will be finalised in due course.
 
Information Guide for CGP Programme Will Be Revised
 
Following the latest amendments to the CGP Programme, the Information Guide for the CGP Programme will be revised and uploaded on the Energy Commission’s website in April 2023.
 
According to the Minster, the renewable energy supply in Malaysia was at 25% as of March 2023. The Minister also stated that the country is on track to achieve its renewable energy capacity targets of 31% by year 2025 and 40% by year 2035⁴. The above amendments to the CGP Programme are reflective of the Malaysian Government’s continued efforts towards achieving the 31% target  set for 2025.
 
 
For enquiries on the Corporate Green Power Programme or any matter pertaining to the same, please contact Richard Khoo (Partner) or Rachel Chiah (Senior Associate) of the Energy Practice of Skrine.
 

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