KUALA LUMPUR (Oct 14): Former energy minister Yeo Bee Yin has sought government clarification on a reported increase in effective grid access charges under the Corporate Renewable Energy Supply Scheme (CRESS) and warned that reversing last month’s announcement would undermine investor confidence.

The Edge reported on Wednesday that the government would raise the effective system access charge (SAC) to 18 sen per kilowatt-hour (kWh), compared with the 14 sen announced in September. 

The Puchong MP (PH-DAP) Yeo called for an explanation from the Ministry of Energy Transition and Water Transformation (Petra), as well as the Ministry of Investment, Trade and Industry and the Ministry of Finance on the matter.

“Such a U-turn, if true, is what I would call a big blunder in the government’s efforts to attract investment, whether domestic or foreign,” she said when debating Budget 2027 in the Dewan Rakyat on Wednesday. “This will send a very, very wrong signal to investors that government policies can keep changing.”

CRESS allows renewable energy developers to supply electricity directly to corporate customers through the national grid, with an access charge payable for use of the network. Investors had already begun making plans and participating in tenders following the earlier announcement, Yeo claimed.

“Last month (when the government announced the CRESS Acceleration Package, offering a 14 sen/kWh), they had already tendered and made plans, and this month it changed. This will affect investor confidence not only in renewable energy and data centres but across the board,” she said.

Citing reports by The Edge and her own sources, Yeo said the Energy Commission had disclosed an additional four-sen/kWh charge for green electricity consumers at Tuesday’s briefing. This would bring the combined charge to 18 sen/kWh — above the CRESS Acceleration Package rate, although still below the previous 20 sen/kWh rate.

Renewable energy stocks fell sharply on Wednesday following the reports. At the end of the trading day, Cypark Resources Bhd (KL:CYPARK) dropped 8.75% to 73 sen while Solarvest Holdings Bhd (KL:SLVEST) fell 5.61% to RM3.87 and Pekat Group Bhd (KL:PEKAT) declined 7.9% to RM2.68.

Separately, Yeo also proposed a dedicated “NEM Agro” scheme to encourage agricultural production and solar generation on the same land.

She urged Petra and the Ministry of Agriculture and Food Security to jointly examine the proposal, arguing that conventional ground-mounted large-scale solar developments could compete with farming and livestock activities for land.

“We are often placed in a dilemma of choosing between energy security and food security,” she said. Under the agrivoltaic approach she described, solar panels could be mounted on elevated structures above crops or livestock areas, or installed over aquaculture ponds. That mechanism will allow electricity generation alongside food production.

“Put simply, one plot of land produces two outputs simultaneously,” she said. Yeo said such arrangements could make better use of land and provide farmers with an additional source of income.

She also highlighted potential benefits from shading crops and livestock, reducing water loss from soil and cooling solar panels through vegetation or water beneath them.