Battery Energy Storage System (BESS): A Lucrative Investment Opportunity in Malaysia for Businesses in the Green Energy Sector

Battery energy storage systems (BESS) are revolutionising the green energy industry with their potential to harness and utilise renewable energy sources more efficiently. BESS offers not only environmental benefits but also lucrative investment opportunities. As Malaysia works towards reducing its carbon footprint and meeting green energy targets, BESS provides a reliable, efficient solution to store and distribute green energy from intermittent renewable sources such as solar, biomass, biogas, and hydropower.

The global BESS market is anticipated to grow significantly, driven by the need for increased renewable energy adoption, enhanced grid stability, and leveraging technological advancements. Bloomberg New Energy Finance (BloombergNEF) projects that the market will expand from 27GW (or 56GWh) in 2021 to 411GW (or 1,194GWh) by 2030. The US and China are expected to dominate the market, accounting for 54% of global installations by 2030. The residential and commercial sectors will contribute 44% of installations. Despite high initial costs, anticipated reductions in the coming years will make the BESS market a noteworthy contributor to the growth of renewable energy industry’s investment.

Malaysia is strategically positioned to leverage BESS potential in achieving its ambitious 2050 target of 70% renewable energy. The country’s proactive alignment of strategies with BESS development showcases its commitment to green energy. The Malaysia Renewable Energy Roadmap (MyRER) outlines target and investment in BESS projects as part of its energy transition. With supportive policies and rich renewable resources, Malaysia can emerge as a significant player in the BESS industry.

A central pillar of MyRER’s post-2025 strategy involves prioritising cost-effective energy storage solutions, including battery storage. This strategy focuses on structured markets for grid balancing services, encouraging innovative grid management solutions, and exploring new economic activities. Malaysia’s conducive policies and market conditions make it an appealing destination for businesses to invest in BESS, as the demand for green energy intensifies.

The significance of BESS in the green energy industry cannot be overstated. Its ability to mitigate the intermittent nature of renewable sources by storing excess energy during peak production and releasing it during high demand is vital for increased renewable integration and reduced reliance on fossil fuels. Moreover, BESS supports grid stability, providing essential ancillary services, load balancing, and voltage regulation. This technology lays the foundation for more sustainable, reliable, and resilient grids.

Diagram : Flowchart of how BESS technology functions.

BESS holds the key to a decentralised, low-carbon energy transition by reducing grid congestion, improving reliability, integrating renewable energy, and curbing peak demand. These capabilities pave the way for resilient energy infrastructure, accommodating higher shares of renewable sources, empowering local communities, and advancing global sustainability goals.

Malaysia’s green energy sector gains momentum through BESS, attracting investments and fostering innovation. The recent partnership between Citaglobal and Genetec to manufacture BESS in Malaysia and ASEAN underscores the country’s commitment to sustainability. This strategic collaboration has not only improved grid performance, reducing power outages, but also attracted investments from domestic and international sources. As investor confidence in Malaysia’s green energy commitment grows, economic growth is set to follow.

The transformative power of BESS in Malaysia extends beyond environmental benefits. It catalyses advancements in smart grid technology and energy management systems, promoting efficient energy usage and emissions reduction. Government incentives further promote BESS adoption, encouraging a wave of investments from local and international renewable energy companies. Malaysia emerges as a regional leader in sustainable energy innovation, poised for a cleaner, greener future.

The integration of BESS propels Malaysia toward a sustainable future powered by clean energy. With reduced emissions, increased grid reliability, and surges in green investments, Malaysia is on track to become a global model for sustainable development and environmental stewardship.