**CRESS Launch Shows Slow Uptake Despite Policy Innovation in Malaysia’s Clean Energy Sector**
The latest research from the Asia Clean Energy Coalition (ACEC) and the Clean Energy Buyers Association (CEBA) reveals a sobering paradox in Malaysia’s clean energy landscape. While the nation sets ambitious renewable energy targets and implements seemingly progressive policies, significant challenges in execution are hindering progress. This scenario presents a textbook example of how well-intentioned frameworks can falter due to fundamental design flaws.
Malaysia’s situation also reflects broader difficulties faced by Southeast Asian economies striving to balance energy security with growing corporate sustainability demands. As Suji Kang, Programme Director at ACEC, 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 provides a particularly stark illustration of this disconnect.
### The Malaysian Experience: Progress Hampered by Structural Barriers
On paper, Malaysia’s renewable energy trajectory looks promising. As of 2023, approximately 25% of the country’s energy capacity comes from renewable sources, moving it closer to its targets of 31% by 2025 and 40% by 2035. Projections indicate Malaysia could reach 36.4% renewable capacity by 2035, largely driven by its substantial hydropower base—which makes up 69.9% of renewable capacity—and expanding solar installations.
However, the CEBA report highlights that Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS), launched in September 2024, has experienced slow uptake. Despite its policy innovation, the scheme recorded only 1.3 GW in commitments as of mid-2025, indicating an underwhelming market response. This sluggish adoption points to deeper structural challenges within the renewable energy market.
A more telling example of market dysfunction arises from Malaysia’s Corporate Green Power Program (CGPP). The virtual Power Purchase Agreement (PPA) initiative successfully achieved full subscription of its 800 MW allocation by November 2023, with 32 successful corporate applicants. This demonstrated a clear and strong appetite for clean energy procurement among Malaysian businesses.
Yet, despite this evident demand, Malaysian authorities have not announced any public plans to expand or continue the program beyond its initial allocation. This raises questions about the government’s commitment to scaling effective mechanisms that meet corporate sustainable energy needs.
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Malaysia’s clean energy journey underscores the critical need for improved market design, greater transparency, and enhanced procurement tools to bridge the gap between policy ambitions and real-world results. Without addressing these challenges, the country risks stalling its progress and failing to fully capitalize on the clean energy opportunities sought by its corporate and economic sectors.
https://www.digitalnewsasia.com/sustainability-matters/malaysias-clean-energy-impasse-when-good-intentions-meet-market-reality