04/06/2026

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THURSDAY | JUNE 4, 2026

Energy transition is about prosperity for country, people

Ű BY JOHN GILBERT sunbiz@thesundaily.com

KUALA LUMPUR: The ongoing geopolitical tensions in West Asia, coupled with heightened volatility in global energy markets, underscore the pressing need to reduce dependence on conventional energy sources and accelerate the transition towards a more secure, resilient and sustainable energy future. Deputy Prime Minister and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof said the energy transition is ultimately not only about technology, infrastructure or markets but about nation-building. “Every major chapter in Malaysia’s development, from rural electri fication and industrialisation to digital transformation, was made possible because we chose to invest not only in infrastructure, but in people, insti tutions and shared purpose. “The energy transition must be approached in the same spirit. It is not merely a technological shift. It is, at its core, about the well-being and prosperity of our people. “For Malaysia, and I believe for Asean, the energy transition is not only an environmental imperative. It is an economic necessity, and a strategic priority,” he told delegates at the Energy Transition Conference 2026 (ETCon26) yesterday. Fadillah said in his special address that Malaysia’s renewable energy portfolio comprises solar, small hydro, biomass and biogas, with solar emerging as the fastest-growing segment. Guided by the National Energy Transition Roadmap (NETR), which was introduced at the inaugural Energy Transition Conference in 2023, the country continues to commit to increasing the share of renewables in its energy mix. With strong commitment from Tenaga Nasional Bhd (TNB) and a broader ecosystem of partners, Malaysia has achieved an installed renewable energy capacity exceeding 13.3 gigawatts as of 2025, with solar accounting for a rapidly growing share. This year, the Energy Transition and Water Transformation Ministry KUALA LUMPUR: Malaysia is accelerating the deployment of battery energy storage systems (BESS) as part of its energy transition plans to strengthen power grid stability and support the integration of renewable energy. Deputy Prime Minister Datuk Seri Fadillah Yusof said the Energy Commission is preparing to open tenders for large-scale BESS projects in the near term, with total capacity of about 2,000 megawatts (MW), and further opportunities expected as demand for grid stability rises. “The total battery storage capacity is 2,000 megawatts and of course, we will open more because it is needed for the future,” he told reporters after witnessing the signing of a strategic partnership between a local company Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

as part of the efforts to accelerate renewable energy initiatives and advance the energy transition. Across Southeast Asia, Fadillah said, electricity demand is projected to grow by 4% to 5% annually over the coming decade, driven by industrialisation and urbanisation, as well as new sources of demand such as digital infrastructure, electric vehicles, cooling demand and AI data centres. “Data centres, for example, are emerging as one of the fastest growing sources of electricity demand globally, driven by the rapid expansion of AI and cloud infrastructure. “As economies become in creasingly digital and electrified, energy systems around the world

will face growing pressure to deliver reliable, secure and sustainable power at scale. “This presents both challenges and opportunities. As Asean’s digital economy continues to expand rapidly, the energy in dustry must modernise its grid and transmission networks, strengthen interconnectivity and develop energy storage solutions that can support greater system flexibility, stability and resilience.” Fadillah said the Asean Power Grid initiative stands as a strong testament to how Asean member states can work collectively to advance cross-border electricity trade, strengthen regional energy security and support a more resilient energy future for the region. Moving on, he said globally, investment momentum in clean energy continues to accelerate as countries intensify decarbonisation efforts and strengthen energy security. For Southeast Asia, the sustained investment and stronger regional collaboration will be essential to support long-term eco nomic growth and achieve energy transition ambitions. “Our region is well-positioned to capture a meaningful share of this capital – provided we continue to deliver the fundamentals that investors look for,” Fadillah said. “In Malaysia, the government continues to communicate clearly on what investors require for long term visibility, through instru ments such as the National Energy Transition Roadmap. that the NETR presents for the country’s energy future and long-term sustainable economic growth. “In HKCT, we have found a world leader in battery energy storage technology and a natural choice of partner, one that brings cost-effective, advanced solutions precisely aligned with Malaysia’s energy transition aspirations,” he said. HCKT vice-president William Wang said Malaysia represents one of the most compelling growth markets for grid-scale energy storage in Southeast Asia, and this partnership reflects its commitment to establishing a strong and lasting presence here. ““We selected Mikro MSC as our exclusive Malaysian partner because of its technical experience, esta blished market presence, strong sector relationships and credibility in supporting complex power infra structure projects,” he said.

o It is not only an environmental imperative, it is an economic necessity and a strategic priority, says Fadillah

management to ensure a more efficient and responsive system. “Our policy intent is clear: to build a more resilient and future-ready system that supports economic growth while advancing our climate commitments,” Fadillah said. He also noted that Malaysia, through TNB, is set to invest RM43 billion from 2025 until 2027 to upgrade and strengthen the grid system, including integration of artificial intelligence (AI) elements,

(Petra) launched the 2026-2030 Petra Strategic Plan to accelerate the country’s energy transition and water transformation, Fadillah said. The plan is guided by the NETR and the country’s broader goal of achieving net-zero emissions as early as 2050, he added. The five-year plan features 119 programmes and initiatives, with 133 measurable targets that prioritise grid upgrades, digitalisation across the energy sector and demand-side

“What is required now is disciplined execution and dedication from partners to translate this vision into outcomes.” Malaysia accelerates BESS projects to strengthen power grid stability Fadillah visits exhibition booths during the TNB Energy Transition Conference 2026 at the Kuala Lumpur Convention Centre yesterday.– BERNAMAPIC

looking at, under LSS6, it must come with battery, which means all new power generation using solar must include storage.” Fadillah said the initiatives are being fast-tracked in response to global energy challenges, as the government moves to address supply risks and support a more resilient, renewable-based power system. Separately, ACE Market-listed Mikro MSC Bhd is partnering with Hong Kong Cospower Technology Co Ltd (HKCT) to develop large-scale BESS projects in Malaysia. Under a two-year agreement, Mikro MSC will serve as HKCT’s partner for utility-scale BESS projects, including grid-connected systems, renewable energy integration and selected commercial and industrial applications. Mikro MSC CEO Syed Mohd Hafiz Syed Mohd said it is well-positioned to capture the significant opportunities

and a Hong Kong-based battery technology firm. Fadillah, who is also Energy Transition and Water Transformation Minister, said the expansion of BESS deployment is expected to involve substantial investment as projects undertaken by Tenaga Nasional Bhd (TNB) alone could be valued at nearly RM1.5 billion. He added that the broader pipeline of battery storage projects is expected to run into several billion ringgit, reflecting growing demand for grid stability solutions as renewable energy penetration increases. “If it is only built by TNB, the value is about RM1.5 billion ,,, overall, we are talking about billions,” he said. Fadillah said the government is also looking to further develop a domestic battery storage ecosystem, with collaborations between local and international players paving the way

for initial assembly activities and eventually full-scale manufacturing in Malaysia. “Maybe they will start by assemb ling first and then eventually it will be built for manufacturing in Malaysia. Such partnerships would support local industries through the supply of materials and technical expertise,”he said. Fadillah said battery storage has become a key pillar of the National Energy Transition Roadmap (NETR) as Malaysia expands its renewable energy capacity. “If we want to go to renewable energy, which is intermittent, the battery is the tool to stabilise our grid,” he said. At the same time, he indicated that upcoming solar projects under the next round of the Large Scale Solar (LSS6) programme are expected to incorporate battery storage as part of their design. “This is one of the areas we are