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Battery Energy Storage System Malaysia: Maximising Clean Energy Performance


Battery Energy Storage System Malaysia: Maximising Clean Energy Performance

Progressing towards a cleaner future, the Malaysian government has set an ambitious goal to attain a higher penetration of renewable energy in the country’s energy mix. The advancement of cutting-edge battery energy storage systems in Malaysia plays a pivotal role in addressing electricity demands and supplying green energy.

According to the U.S. Energy Information Administration (EIA), global energy consumption will nearly double by 2050, driven primarily by Asia’s expected rapid economic growth. This corresponds to current predictions in Malaysia, where energy demand is predicted to rise from 18,808 MW in 2020 to 24,050 MW in 2039. Tham Chee Aun, the Group CEO of Ditrolic Energy, commented, “As the renewable energy penetration into the grid increases, there will be a growing need for Battery Energy Storage System (BESS) in the grid system for balancing and grid stabilisation purposes. Hence, it is inevitable and a matter of time before BESS will see tremendous growth in the Malaysian market as renewable energy usage increases.“

While there are other renewable energy choices, such as hydro and wind, Malaysia’s equatorial location means it has some of the world’s highest solar power potential. Solar is also the cheapest source of electricity in many countries. As such, the government has become more proactive in determining areas suited for solar power adoption, notably battery energy storage systems in Malaysia.

“In November 2022, the government introduced a policy allowing corporate virtual power purchase agreements on the merchant electricity market. This policy is very significant as it allows, for the first time, buyers and sellers to trade green electricity outside of the traditional long-term PPA market with TNB. With this landmark policy, hopefully, the electricity market will also shift into the introduction of BESS policy to cater for the ancillary services of such merchant contracts soon,” Tham shared.

Answering the government’s call to accelerate green energy transitions, Ditrolic Energy strives to deliver solar system stability by leveraging years of experience and state-of-the-art technology.

What is an Energy Storage System (ESS)?

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The Energy Storage System comprises a number of batteries connected to the electrical grid through a Power Conversion System. The batteries are controlled and managed by a Battery Management System, responsible for functions such as charging, discharging, cell balancing, health and state monitoring, and disaster prevention.

Tham shared, “Traditionally, electrical grid system relies on conventional power plants, such as coal and gas generators, to provide the required power capacity to support the grid on a real-time basis. However, such a function comes at a high cost, not only in terms of price but also in the release of carbon into the atmosphere. With the introduction of utility-scale BESS, such grid support functions could be taken over from fossil fuel generation plants on a cleaner basis and with increasingly cheaper costs as well”.

An ESS is comparable to a power bank, as it enables captured energy to be used at a later time. This allows businesses and industries to meet peak energy demands and conserve energy for usage during grid failure or when the electricity demand rises.

The system efficiently solves the limitation of renewable energy’s variable output, as sunlight and wind will not be accessible throughout the entire day. ESS also stores energy during off-peak hours and supplies it during peak hours to lower costs for places that adhere to time-of-use tariffs.

Above all, ESS is an enabling technology which benefits all. The system significantly improves reliability and resilience, encourages sustainable operations, reduces environmental impacts, and helps save consumers money.

Reaping the Advantages of a Battery Energy Storage System in Malaysia

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In addition to storing energy for later consumption, a battery energy storage system in Malaysia also serves the following purposes:

  • Cost-Efficient
    While clean energy resources are extremely advantageous, they are also intermittent and require proper frequency regulation. Fortunately, energy storage provides frequency regulation and spinning reserve services while balancing consumer costs.

    This sustainable system helps us efficiently lowers energy costs by reducing fossil fuel uses and minimising lost revenue from outages. It also offsets the cost to consumers by saving low-cost energy to use during peak demands and higher electricity rates.
     
  • Robust and Reliable
    ESS can supply sufficient and scalable backup power during disruptions. For instance, the principle to power an emergency light that plugs into a wall but also has a battery backup is applicable to power your property and even your entire electrical network.

    This flexibility is extremely significant in securing a reliable power source, improving power quality, and ensuring stability. With ESS, businesses can prevent costly delays and resume normal operations by adopting energy storage during minor outages.
     
  • All-in-One
    By storing excess energy and delivering it when the reverse happens, energy storage streamlines the supply of intermittent resources. Storage can also help inefficient baseload resources deliver electricity more efficiently and ensure smooth operations.

    Furthermore, energy storage may transmit or withdraw electricity as needed to match the load required for the process precisely. As an enabling technology, energy storage can immediately provide the right amount of resources needed.
     
  • Enhance Efficiency
    Energy storage improves the electric grid’s efficiency and capacities, as well as the potential to minimise greenhouse gas (GHG) emissions. The system enhances grid efficiency by boosting the capacity factor of current resources, reducing the need to build new and environmentally-damaging power plants.

    ESS enables a more reliable energy supply mix development as the energy supply mix becomes cleaner with low- and no-carbon resources. Thus, an energy storage system effectively reduces environmental impact.
     

Who Would Benefit from a Battery Energy Storage System in Malaysia?

The battery energy storage system in Malaysia delivers an innovative and high-quality framework for renewable energy storage and can be tremendously useful in meeting your commercial and industrial needs. Not only that, but the technology is also a crucial instrument for influencing public opinion to be in favour of renewable energy, sustainability, and environmental preservation.

All these elements are essential in driving the pace of Malaysia’s energy transition. As such, both businesses and the public will immensely benefit from a battery energy storage system in Malaysia.

“Malaysia’s electricity market is heavily subsidised by the government, and this presents a challenge to the introduction of solar and BESS into the system. However, with the global increase of energy prices from coal and gas, it now makes financial sense for the government to focus on clean energy generation, which in the long run would help to reduce the government subsidy expenditure,” Tham concluded.

Enjoy Amazing Energy Performance with Ditrolic Energy

Considering if you should get a head start on clean energy by installing a battery energy storage system in Malaysia? Have questions about its potential and how it can help you reach your business sustainable and green goals? Find out more about the ESS system and what it could do for you by checking out our official website or contacting our team today.