Solarvest and Samaiden Jump on CRESS Acceleration Package
Renewable energy shares rose after PETRA launched the CRESS Acceleration Package, boosting project returns and deal expectations.
Key points
- Solarvest rose 10.51% and Samaiden jumped 15.38% on Bursa Malaysia following the CRESS Acceleration Package announcement.
- CRESS projects are estimated to yield 9-11% internal rates of return, surpassing the 6-8% typical for large-scale solar.
- A potential RM36 billion market for solar and storage exists due to renewable energy requirements for new data centers.
Renewable energy stocks on Bursa Malaysia recorded significant gains in early Monday trading, driven by the introduction of the Corporate Renewable Energy Supply Scheme (CRESS) Acceleration Package. The Bursa Malaysia Energy Index climbed 0.41% to 823.98 by 9:56 am, reflecting broad sector optimism following the policy announcement.
Solarvest led the rally with a 10.51% increase to RM3.68, while Samaiden jumped 15.38% to RM2.25. Pekat also advanced 5.21% to RM2.22. These moves followed last Friday’s release of the CRESS Acceleration Package by the Energy Transition and Water Transformation Ministry, or PETRA, which aims to improve programme viability and accelerate new capacity development.
CRESS economics outperform large-scale solar
Hong Leong Investment Bank Research noted that CRESS projects offer superior financial returns compared to large-scale solar (LSS) initiatives. Because developers can negotiate tariffs directly with corporate offtakers rather than engaging in competitive bidding, CRESS projects are estimated to generate internal rates of return between 9% and 11%.
This return range exceeds the 6% to 8% typically seen in previous LSS projects. HLIB Research cited Tenaga Nasional’s DayOne CRESS project, which is projected to achieve an internal rate of return of approximately 12%. The higher potential yields strengthen project economics and provide developers with a stronger incentive to pursue CRESS opportunities.
Data center demand expands solar market
Industry checks indicate that newly approved data center projects in Malaysia may face a minimum 30% renewable energy requirement. This regulatory shift creates a substantial market for solar and battery energy storage systems as the country’s data center sector expands rapidly.
Based on a 5GW data center pipeline, HLIB Research estimated a total addressable market of RM9 billion for solar and storage projects on a capacity-matching basis. On an energy-matching basis, the potential market value rises to approximately RM36 billion, highlighting the significant scale of opportunity for renewable energy providers.
Research house adjusts sector targets
The CRESS Acceleration Package is expected to spur stronger deal announcements in the fourth quarter of 2026 and the first quarter of 2027. HLIB Research anticipates that Solarvest and Samaiden will secure their first CRESS projects within the next three months, positioning them to benefit from the improved policy framework.
Reflecting these improved outlooks, HLIB Research raised its target price for Solarvest to RM4.85 from RM3.59 and for Samaiden to RM3.13 from RM2.35. The research house maintained its overweight rating on the renewable energy sector, citing the enhanced project economics and expanding demand drivers reported in The Star.
