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Corporate Green Power Programme (CGPP) 

The Corporate Green Power Programme (CGPP) is a renewable energy initiative spearheaded by the Malaysian government. Designed to drive the adoption of sustainable practices, CGPP offers corporate consumers the unique opportunity to virtually purchase solar energy directly from solar developers. This innovative programme transforms the way businesses access and benefit from solar energy without the need for physical ownership or management of solar panel installations. Through virtual power purchase agreements (VPPAs), corporate consumers can actively participate in the renewable energy movement, supporting clean power generation and reducing their environmental impact. 

How CGPP Works? 

The Corporate Green Power Programme (CGPP) operates through a systematic process that allows corporate consumers to procure renewable solar energy virtually. The following diagram presents an overview of the CGPP framework: 

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In essence, the Corporate Green Power Programme (CGPP) operates through a dynamic energy delivery and transaction process involving three key parties as follows:

Solar Power Producer (SPP):

Takes charge of developing, owning, and operating the solar power plant.

Corporate Consumer (CC):

Receives electricity supply from the Electricity Utility Company.  

Electricity Utility Company (EUC):

Facilitates the delivery of electricity from various generation sources, including the solar power plant.

Under the Corporate Green Power Agreement (CGPA), the Corporate Consumer agrees to purchase energy generated by the Solar Power Producer at an agreed price or price structure. If the Actual SMP exceeds the CGPA price, the Solar Power Producer compensates the Corporate Consumer for the difference, and vice versa. 

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Key Financial Transactions

The financial transactions between the Corporate Consumer and the Solar Power Producer are as follows: 

01

Payment from the Electricity Utility Company to the Solar Power Producer 

For the energy quantity E1 (kWh) exported by the solar power plant, the Electricity Utility Company pays the Solar Power Producer an amount P1 based on the Actual SMP (RM/kWh) in that specific half-hour time frame.

P1 = E1 (kWh) x Actual SMP (RM/kWh) 

02

Payment from the Corporate Consumer to the Electricity Utility Company

For the energy quantity E2 (kWh) supplied by the Electricity Utility Company to the Corporate Consumer, the Electricity Utility Company charges the Corporate Consumer an amount P2 based on the approved tariff rate T (RM/kWh) of the company.

P2 = E2 (kWh) x T (RM/kWh) 

03

Financial settlement between the Corporate Consumer and the Solar Power Producer

If the CGPA specifies an energy price C (RM/kWh), the financial settlement amount P3 between the parties for the energy quantity E1 (kWh) exported by the Solar Power Producer depends on the difference between the energy price C (RM/kWh) in the CGPA and the Actual SMP (RM/kWh).

If C > Actual SMP :

The Corporate Consumer pays the Solar Power Producer an amount P3 = E1 (kWh) x (C - Actual SMP)

If Actual SMP > C:

The Solar Power Producer pays the Corporate Consumer an amount P3 = E1 (kWh) x (Actual SMP - C)

Note: The CGPA may involve a fixed price or a specific price structure, which affects the financial settlement accordingly. 

Benefits of Participating in the CGPP

Engaging in the CGPP offers corporate consumers a range of advantages, allowing them to procure renewable energy and contribute to sustainable business practices. Here are the key benefits: 

01

Procurement of Renewable Energy 

02

Ownership of Green Attributes

03

Reduction of Scope 2 Emissions

04

Fulfilment of Sustainability Goals Through RECs

05

Enhancement of Corporate Reputation

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If you are interested in learning more about how Progressture Solar can help your business transition to clean, sustainable energy, contact us today.

Eligibility Criteria

To be eligible for participation in the CGPP, corporate consumers must meet the following criteria: 

Let’s Embark on CGPP with Progresture Solar

As we embark on the transformative journey of the Corporate Green Power Programme (CGPP), Progresture Solar is ready to guide your business towards a greener future and energy independence. Our diverse range of renewable energy solutions caters to the evolving needs of businesses, enabling you to transition to clean energy sources and reduce your carbon footprint.

Let’s take the first step towards a brighter, cleaner future by choosing Progresture Solar as your trusted partner in renewable energy. Contact us today to learn more about our services and how we can tailor a solution to meet your specific energy needs.

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