In a move that could reshape the region’s renewable energy landscape, the Malaysian government has announced a significant reduction in grid access charges for buying and selling renewable energy, slashing rates by up to 40% under two innovative programs. The announcement, made on August 29, 2025, comes as neighboring Australia grapples with mounting delays and political opposition in its own green transition, highlighting starkly different approaches and challenges in Southeast Asia and Oceania’s clean energy race.
Malaysia’s announcement centers on two key initiatives: the Corporate Renewable Energy Supply Scheme (CRESS) and the Community Renewable Energy Aggregation Mechanism (CREAM). According to the Ministry of Energy Transition and Water Transformation, these programs are designed to make renewable energy more accessible and affordable for both businesses and households. CRESS allows companies and industries to purchase renewable energy directly from producers—think solar or wind farms—using the national power grid. Meanwhile, CREAM gives small-scale solar producers, such as homeowners with rooftop panels, the ability to sell their surplus electricity to other users through the grid.
The most eye-catching change is the reduction in community access charges under the CREAM program, which dropped from 15 sen per kilowatt-hour (kWh) to just 9 sen per kWh, effective July 1, 2025. The Ministry emphasized that these new system access charge (SAC) and community access charge (CAC) rates represent reductions of up to 40% compared to previous levels. "These revised rates are expected to attract more corporate consumers to source their green electricity supply at more competitive costs," the Ministry stated, underscoring the government’s hope that lower costs will spur greater adoption of renewable energy across the country.
This policy shift comes at a pivotal moment for the region. While Malaysia is making headlines for incentivizing green power, Australia finds itself mired in complications that threaten to stall its own energy transition. On August 28, 2025, new analysis presented to government officials in Canberra revealed that Australia’s renewables rollout is running more than seven years behind schedule. According to the findings, these delays cast serious doubt on the Labor government’s ability to meet an ambitious 2035 emissions target, which is slated to be set in September 2025.
The Australian government’s struggles were laid bare during a tense encounter on Friday, when Prime Minister Anthony Albanese was confronted by angry protesters in regional Australia. The demonstrators, incensed by the government’s energy plans, reflect a broader wave of resistance that has emerged from both farming and environmental groups. Their opposition, which has become increasingly vocal, illustrates the complex balancing act faced by governments seeking to decarbonize their economies without alienating key constituencies.
According to the new analysis, the delays in Australia’s renewables rollout are not merely a matter of missed deadlines—they represent a fundamental challenge to the nation’s climate ambitions. The Labor government, which came to power promising bold action on climate change, now faces the prospect of having to recalibrate its targets or risk falling short of its international commitments. The doubts raised by the Canberra analysis are particularly pointed given the government’s plan to announce a new emissions target for 2035 in just a few weeks.
In contrast, Malaysia’s approach appears to be gaining traction, at least on the policy front. By lowering grid access charges, the government hopes to remove one of the key financial barriers that have historically deterred businesses and households from investing in renewable energy. The Ministry explained that the new rates were set after a careful review of the latest tariff schedule, effective July 1, with the goal of "ensuring fair rates without double counting." This attention to detail, officials say, will help create a more level playing field for all participants in the energy market.
For corporate consumers, the changes could be especially significant. Under the CRESS program, companies now have a clearer and more affordable pathway to sourcing green electricity directly from producers. This could prove attractive to multinational firms with sustainability targets, as well as local businesses seeking to reduce their carbon footprint and energy costs. The government’s hope is that, by making renewable energy more cost-competitive, it can accelerate the shift away from fossil fuels and help Malaysia meet its own climate goals.
On the community side, the reduction in CAC under CREAM is likely to benefit small-scale solar producers, such as homeowners and small businesses. By lowering the cost of selling excess power back to the grid, the government is effectively boosting the incentives for individuals to invest in rooftop solar panels and other renewable technologies. This, in turn, could help drive a more decentralized and resilient energy system—one that is less dependent on large, centralized power plants and more responsive to local needs.
Of course, challenges remain. While the reduction in grid access charges is a positive step, experts caution that other barriers—such as regulatory hurdles, financing constraints, and grid infrastructure limitations—must also be addressed if Malaysia is to achieve a truly sustainable energy transition. Still, the government’s willingness to act decisively on pricing signals sends a strong message about its commitment to clean energy.
In Australia, the picture is more complicated. The strong opposition from farming and environmental groups reflects deep-seated concerns about the impact of large-scale renewable projects on rural communities and natural landscapes. Some farmers worry that new wind and solar farms could disrupt traditional land use, while environmentalists fear that poorly planned projects could harm biodiversity. These tensions have contributed to delays and uncertainty, making it harder for the government to deliver on its promises.
The contrast between Malaysia and Australia is striking. On one hand, Malaysia is moving to make renewable energy more affordable and accessible, betting that lower costs will drive adoption and help the country meet its climate targets. On the other, Australia is struggling to keep its energy transition on track, hampered by delays, political opposition, and the complexities of balancing competing interests.
As both countries navigate the turbulent waters of energy transition, their experiences offer important lessons for policymakers across the globe. For Malaysia, the challenge will be to sustain momentum and ensure that policy changes translate into real-world progress. For Australia, the task is to overcome entrenched resistance and find a path forward that reconciles economic, environmental, and social priorities.
One thing is clear: the race to a greener future is far from over, and the decisions made today will shape the energy landscape for decades to come.
