Model your project savings and peak-demand reduction
Calculate ROIProcure renewable energy and receive RECs for ESG compliance — without installing a single solar panel on your building. Malaysia's CGPP framework makes corporate green power accessible to any company, any location.
A Virtual Power Purchase Agreement (Virtual PPA) is fundamentally different from a physical PPA. In a physical PPA, solar panels go onto your roof and you consume that electricity directly. In a Virtual PPA, the solar farm is installed at a remote location — and you never physically receive that electricity.
Instead, the arrangement is financial. You sign a long-term agreement fixing a price for a volume of renewable energy. Each month, financial settlement occurs based on the difference between your contracted price and the actual market price. Alongside this, you receive Renewable Energy Certificates (RECs) and carbon offset credits for every MWh generated on your behalf.
These RECs are the proof of green energy consumption that your ESG reports, RE100 commitments, CDP disclosures, and investor sustainability frameworks require — regardless of what physically flows into your building from TNB.
The solar plant is built at a grid-connected remote location. No rooftop access, structural surveys, or building modifications required.
Monthly net settlement against System Marginal Price. You benefit when electricity prices rise above your locked CGPA rate.
Renewable Energy Certificates flow directly to you for use in Scope 2 market-based accounting and ESG frameworks.
Verified carbon offsets are generated alongside RECs, supporting your net-zero roadmap and voluntary carbon market commitments.
Malaysia's Corporate Green Power Programme (CGPP) was launched in November 2022 by the Energy Commission, providing a regulated framework for corporate renewable energy procurement.
Producer pays you the difference. You received cheaper energy than the market price.
You pay the producer the difference. Market was cheaper, but you guaranteed the producer's revenue.
Quantify your Scope 2 emissions baseline and set a renewable energy target — typically aligned with RE100, SBTi, or ESG disclosure requirements.
Trexon matches your corporate with a CGPP-registered Solar Power Producer with sufficient capacity and a compatible contract term.
Execute the Corporate Green Power Agreement setting your CGPA rate, contract duration, and REC delivery schedule. No physical infrastructure required.
Each month, the actual System Marginal Price is compared against your CGPA rate. Net financial settlement occurs — you benefit when SMP is above your locked rate.
Renewable Energy Certificates are issued for each MWh generated and attributed to your account. Use RECs directly in ESG reports, RE100 filings, and CDP disclosures.
Virtual PPA is the right solution when physical solar installation is not feasible, but your ESG and decarbonisation commitments are non-negotiable.
Old factories with asbestos roofing, structurally limited roof loads, or leased premises where roof modification is restricted by landlords.
Companies with dozens of offices, retail outlets, or facilities across Malaysia that cannot install solar at every location but need a single group-level RE commitment.
Businesses occupying leased office towers where the landlord controls the roof and common infrastructure. Virtual PPA requires no landlord negotiation.
Corporates with international RE100 commitments, Scope 2 SBTi targets, or supply chain decarbonisation requirements from multinational customers.
Companies targeting net-zero by 2030 or 2050 that need immediate, scalable Scope 2 reductions while longer-term on-site solutions are evaluated.
Bursa Malaysia-listed companies subject to enhanced sustainability reporting (ESR) requirements that need auditable, market-based Scope 2 accounting.
Three pathways to corporate renewable energy in Malaysia — each suited to different business situations.
| Criteria | Virtual PPA (CGPP) | Physical PPA | CRESS |
|---|---|---|---|
| Roof or Premises Required | No — remote solar farm | Yes — on your roof | No — grid allocation |
| Physical Electricity Received | No (financial settlement) | Yes (direct consumption) | No (certificate-based) |
| RECs Issued | Yes | Optional | Yes |
| Scope 2 Carbon Reduction | Yes (market-based) | Yes (location-based) | Yes (market-based) |
| Capex Required | None | None (provider-funded) | None |
| Suitable For Tenants | Yes | Rarely (landlord approval) | Yes |
CRESS = Corporate Renewable Energy Supply Scheme. CGPP = Corporate Green Power Programme.
Six compelling reasons why ESG-committed companies across Malaysia are moving to CGPP Virtual PPA.
Internationally recognised Renewable Energy Certificates for GHG Protocol Scope 2 market-based reporting, CDP, TCFD, and RE100.
Directly reduce your Scope 2 (purchased electricity) emissions footprint without any on-site works or infrastructure changes.
No solar equipment to buy, finance, or depreciate. Virtual PPA is entirely off balance sheet — a pure operating arrangement.
CGPP is regulated by the Malaysian Energy Commission, providing legal certainty and settlement integrity for long-term corporate commitments.
Lock in a CGPA rate as a financial hedge against rising System Marginal Prices. Benefit financially when electricity markets rise.
Procure from 1 MW to 100+ MW of virtual renewable energy to match your full organisational footprint, not just one building.
Scope 2 market-based accounting
Qualifying renewable energy procurement
Climate disclosure renewable sourcing
Climate risk transition metrics
Common questions from corporate sustainability managers and ESG leads evaluating CGPP.
A Virtual PPA (Power Purchase Agreement) is a financial contract where a corporate buyer purchases renewable energy from a solar farm without physically receiving that electricity. Instead, you receive Renewable Energy Certificates (RECs) proving the energy was generated and injected into the grid, along with carbon offset credits. The electricity is "virtually" allocated to your account through Malaysia's CGPP framework.
The CGPP is a Malaysian government initiative launched in November 2022 under the Energy Commission. It allows corporate consumers to procure renewable energy directly from Solar Power Producers through a Corporate Green Power Agreement (CGPA). Settlement is based on the difference between the agreed CGPA price and the actual System Marginal Price (SMP) — no physical electricity transfer is required.
Each month, the actual System Marginal Price (SMP) is compared to your contracted CGPA rate. If SMP exceeds your CGPA rate, the Solar Power Producer compensates you for the difference — you effectively received cheaper energy than market price. If SMP is below your CGPA rate, you compensate the producer. It is a net financial settlement, similar to a financial hedge on electricity prices.
No. That is the core advantage of Virtual PPA. The solar farm is installed at a remote location — not on your premises. You do not need a suitable roof, structural assessments, building management approval, or TNB connection upgrades. Your building continues to receive electricity from TNB as normal, while your REC certificates verify your green energy consumption.
Renewable Energy Certificates (RECs) are internationally recognised instruments that certify one megawatt-hour of electricity was generated from renewable sources. Under GHG Protocol Scope 2 market-based accounting, RECs allow you to report zero-carbon electricity regardless of your physical grid connection. This supports RE100 commitments, TCFD disclosures, CDP reporting, and ESG frameworks required by investors and multinational supply chains.
Minimum CGPP participation typically starts at 1 MW of renewable energy procurement, though this can be aggregated across multiple corporate entities or facilities. Contract terms are generally 3-5 years. Trexon works with you to size the commitment appropriately against your Scope 2 emissions baseline and RE100 target timeline.
Trexon's corporate energy team will assess your Scope 2 baseline, model your CGPP cost-benefit, and connect you with registered Solar Power Producers under the Malaysian CGPP framework.
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