Solar power now makes up 92% of Malaysia’s renewable energy capacity, placing storage at the center of the country’s energy transition agenda. (Photo: Solarvest)
Solar power has changed the rhythm of the grid. There is too much electricity during the day and not enough once the sun goes down. This mismatch, illustrated by the “duck curve,” has become a challenge faced by every market with growing renewable energy. Battery Energy Storage Systems (BESS) is increasingly seen as the tool that can fill this gap and keep the grid steady.
Solar power now accounts for 92% of Malaysia’s total renewable energy installed capacity, according to government figures. This reliance on solar generation is shaping Malaysia’s next policy moves, pushing storage to the center of its energy transition agenda.
Malaysia’s battery energy storage market is projected to grow from USD 3.1 billion in 2025 to USD 9.8 billion by 2031.
Malaysia moves toward mandatory storage for large-scale solar
The Malaysian government plans to require the next round of bidding for large-scale solar (LSS) projects to include battery energy storage systems. The LSS program, which has progressed through phases from LSS1 to LSS5, is a government-led competitive bidding scheme designed to develop utility-scale solar farms that feed power into the national grid.
