Battery energy storage systems (BESS), once relegated to the margins of policy discussions, are fast becoming a keystone in Malaysia’s energy transformation story. As solar and other renewables take up greater shares of the generation mix, the national grid’s growing complexity demands a reliable backbone, a role BESS is beginning to fulfil.
Unlike traditional power plants that rely on fossil fuels-based peaking power, BESS plays a vital role in smoothing out the energy supply from intermittent renewable sources. By storing excess energy from solar when demand is low, and dispatching it when needed, BESS acts as a shock absorber for an increasingly complex grid.
To hasten the adoption of renewables, the government has unlocked BESS deployment to third-party players through concession models. As Malaysia scales up its BESS strategy, early deployments offer valuable lessons in innovation and policy-backed progress that are setting the stage for the grid of the future.
From pilot projects to grid-scale BESS deployment
Malaysia’s first homegrown BESS prototype was unveiled in late 2023 by Citaglobal, an engineering, energy and manufacturing conglomerate and Genetec Technology, a leader in industrial automation. The 1MW prototype known as MYBESS was showcased at a Genetec production plant in the town of Bangi.
MYBESS marked a significant breakthrough for domestic innovation, demonstrating the technical viability of local manufacturing and design. Building on that momentum, national utility Tenaga Nasional Berhad (TNB) announced a bold 400MWh BESS pilot in early 2024, aimed at stabilising the grid and managing intermittency with greater RE penetration.
By October 2024, Malaysia saw the deployment of its first sodium-sulfur (NaS) battery system at a large-scale solar farm in Kedah. This marked a significant step forward for the country’s storage landscape, as the advanced NaS technology offers higher energy density and a longer discharge duration compared to conventional lithium-based systems.
The most recent milestone came in late 2024 when Sarawak Energy commissioned a 60MW/82MWh BESS in Sejingkat, Kuching. This project, co-located with a retiring coal power station, is Malaysia’s first utility-scale deployment , marking a leap forward in reliability and modern grid design.
These deployments chart Malaysia’s rapid evolution from small-scale pilots to full-fledged, grid-scale BESS deployments, setting the bar for deeper integration nationwide. Lessons learned from these early projects can help inform better systems designs, optimised operations, and lead to more robust business models.
Policies driving Malaysia’s BESS momentum
The fast-paced expansion of BESS in Malaysia reflects a national push by policies like the National Energy Transition Roadmap (NETR) and Malaysia Renewable Energy Roadmap (MyRER). Both roadmaps designate BESS as a foundational tool for renewable energy integration and grid stability.
This has helped to de-risk early BESS projects by creating a supportive environment for investment, demonstration, and scaling of battery technologies. In parallel, Malaysia’s growing solar capacity, particularly in LSS and rooftop systems, has made BESS deployment even more urgent for managing peak load and ensure reliability.
Public and private sector actors are now exploring BESS not only as a buffer for renewables but also as a revenue-generating asset. These systems can deliver frequency control, voltage regulation, spinning reserve, and other ancillary services critical to grid health. Indeed, analysts expect local BESS players can achieve profit margins of at least 8%-9%, comparable to existing solar farms.
In Sabah, MSR Green Energy is on track to deliver a 100MW/400MWh project using Sungrow’s lithium-iron phosphate (LFP) technology , further punctuating how regional deployment is gaining ground beyond Peninsular Malaysia and contributing to more balanced, nationwide grid resilience.
Together, these developments reflect a fundamental shift on how BESS is no longer a niche technology, but as essential infrastructure for a modern power system. Its role is centralised in strengthening grid reliability, supporting the transition away from fossil fuels and enabling economically sustainable growth.
Scaling BESS impact through cross-cutting innovation
At its core, BESS enables more intelligent energy use by storing surplus power when supply is high and delivering it when demand is critical. This balancing function is essential not only to grid stability but also for integrating renewable energy at scale without compromising reliability.
While batteries play a clear role in accommodating the increasing share of intermittent sources in electricity systems, there is no one-size-fits-all model. The technology itself is evolving rapidly, with advances in battery chemistry and design unlocking safer materials, greater efficiencies and longer duration storage capabilities. These developments are reshaping what storage can deliver, and how quickly.
Local innovations like NaS battery systems demonstrate Malaysia’s openness to fit-for-purpose chemistries that optimise performance and cost-effectiveness. Meanwhile, projects like MYBESS substantiates local capability in R&D and systems integration – positioning the nation as a valuable player within the global energy storage value chain.
Last year, the Ministry of Energy Transition and Water Transformation (PETRA) took a pivotal step toward a smarter grid with the launch of Malaysia’s first competitive procurement for grid-connected BESS. PETRA is offering players a total capacity of 400MW/1,600MWh through a two-stage bidding process facilitated by the Energy Commission.
By providing greater clarity on regulatory, technical, and contractual requirements, the program offers a structured pathway for private participation in large-scale energy storage. This is expected to make BESS an attractive market in Malaysia, with a CAGR of 5.28% based on market predictions, growing from around US$700 million to over $950 million by 2028.
Charting a path forward for grid-scale storage
Malaysia’s transition from pilot projects to utility-scale BESS installations signals a watershed moment in the nation’s clean energy evolution. These systems are not only technical upgrades, they are strategic tools for decarbonisation, reliability, and modernisation of the national grid.
As Malaysia deepens its commitment under NETR and MyRER, future success hinges on integrated planning, inclusive growth across regions and continuous innovation. Early investments in BESS will create positive spillover effects, like advancing smart grid capabilities and enabling EV charging infrastructure.
With Malaysia’s Chairmanship of ASEAN in 2025, Prime Minister Anwar Ibrahim has also emphasised cross-border energy connectivity , including the ASEAN Power Grid project, as a central thrust for the region’s next phase of growth. Malaysia is well-positioned to lead ASEAN in demonstrating how battery storage can power a more resilient energy future.