As Malaysia accelerates its renewable energy ambitions, Battery Energy Storage Systems (BESS) are becoming an integral part of the energy equation—not only as a compliance requirement under the new 2025 SELCO Guidelines (referring to Clause 3.5 - 3.8), but as a strategic solution to enhance business resilience, efficiency, and sustainability.
Whether you're already investing in solar or planning to, understanding BESS is essential to prepare for the installation of a battery energy storage system shall only be required after 31st December 2025, and unlock long-term value.

What is BESS?

A Battery Energy Storage System (BESS) stores excess energy for later use, helping businesses stabilize energy costs, mitigate grid disruptions, and support peak load management. Whether paired with solar systems or grid power, BESS enables smarter, more resilient energy use.
For energy-intensive industries, manufacturing plants, logistics hubs, and large commercial facilities, BESS opens the door to:
• Avoid high Maximum Demand (MD) chargers by using battery power during peak load periods
• Energy Arbitrage Function. BESS system can be charged during off-peak hours via grid electricity and to be discharged during peak hours for achieving additional savings from the difference of peak and off-peak tariffs.
• Improved power reliability and backup during outages
• Sustainability milestones via carbon reduction and renewable integration

Battery Storage for C&I vs. Utility: What’s the Difference?

(1) BESS for Commercial & Industrial (C&I) Users

Many businesses have already installed solar PV systems to reduce monthly electricity bills. However, the system size is often limited by export rules, grid capacity, or self-consumption constraints that were set earlier by the government. With the latest 2025 SELCO Guidelines, you may need to know about the requirement and prepare accordingly.
• While the new requirements took effect on 1 January 2025, the government has provided a grace period—the mandatory BESS implementation has been extended to 31 December 2025.
• The installation of BESS is required for solar PV systems above 72kWp.
• A Connection Assessment Study (CAS) is also mandatory to assess the impact on the grid.

Who Should Consider C&I BESS?
• Large rooftop space but limited solar PV capacity due to grid constraints
• High daytime and peak-hour energy usage
• Operations running into the evening or night
• Sustainability goals and ESG commitments

(2) BESS for Utility-Scale/ Standalone BESS Farms

A Standalone BESS for Utility Scale is an energy storage facility not tied to a specific solar or load site. Unlike C&I battery systems, utility-scale BESS farms operate at grid level, typically ranging from 1MWh to 100+ MWh in capacity. In fact, Malaysia’s National Energy Transition Roadmap (NETR) and other energy market frameworks such as NEDA, CRESS are expected to support energy storage through grid services.

Who Should Consider Standalone BESS Farms?
• Independent Power Producers (IPPs)
• Renewable energy developers
• State or regional utilities
• Energy-focused investment funds
• Industrial park operators with grid connection access

A Case Study: Malaysia’s First 1.45MWh NaS BESS

In a pioneering project, we installed and commissioned Malaysia’s first Sodium-Sulfur (NaS) Battery Energy Storage System (1.45MWh) at the LSE II Large Scale Solar farm in Bukit Selambau, Kedah.
Although integrated with a solar farm, this BESS operates on a grid support model — simulating how future independent BESS farms will play a role in:
• Load shifting
• Peak shaving at the grid level
• Grid export stability
• Renewable firming
This project serves as a national reference point for future large-scale standalone battery deployments.

Challenges to Consider for Battery Energy Storage Systems

While BESS offers many advantages, there are challenges:
• Initial Costs: Setting up a BESS can be expensive, though prices are decreasing as technology advances.
• Safety Concerns: Proper management is essential to prevent issues like overheating or fires.
• Environmental Considerations: The production and disposal of batteries have environmental impacts that need to be managed responsibly.

Act Now to Stay Ahead

Malaysia’s energy regulations are evolving—and businesses that prepare early will gain the upper hand in energy independence, operational continuity, and sustainability leadership.
Need guidance on BESS and the 2025 SELCO compliance? Let our team help you navigate the technical, regulatory, and economic aspects of battery storage, so you can power your operations with confidence.

Info Sources:
1. Suruhanjaya Tenaga – Guideline for Solar Photovoltaic Installation for Self-Consumption in Peninsular Malaysia
2. Tenaga National Berhad (TNB) - About Maximum Demand
3. Ministry of Economy – National Energy Transition Roadmap
4. Suruhanjaya Tenaga – What is NEDA
5. Suruhanjaya Tenaga – Guideline for Corporate Renewable Energy Supply Scheme (CRESS)
6. The Star - Leader Energy and Plus Xnergy to deploy Malaysia’s first sodium-sulfur BESS