BERHAD: Major BESS Contract Wins Affirm Strong Prospects

The country’s infrastructure sector is poised for significant growth as a major player recently secured two grid-scale Battery Energy Storage System (BESS) projects. These awards fall under the Energy Commission’s (Suruhanjaya Tenaga or ST) first major tender, part of the MyBeST programme. The programme aims to commission four 100MW/400MWh projects by 2027, and these latest wins underscore the company’s robust capabilities and validate its technical and commercial strengths.

The MyBeST programme represents the nation’s largest international competitive open bidding initiative for grid-scale BESS. Designed to encompass four grid-connected BESS projects, each with 100MW/400MWh capacity, these assets are critical for achieving national long-term energy goals. They support efforts to reduce reliance on fossil-fuel peaking plants, lower system costs, and contribute to the National Energy Transition Roadmap’s target of 70% renewable energy capacity by 2050. Notably, the selection of different battery technology providers for each shortlisted bidder will facilitate valuable assessments of performance and suitability within Peninsular Malaysia’s unique grid and climatic context.

Future Outlook

The investment community views these project awards positively, anticipating future recurring income and strategic value. Malaysia’s power sector is undergoing a crucial transition, with increasing integration of intermittent solar power, particularly from large-scale solar (LSS) projects, introducing risks of grid congestion and supply-demand issues. The proactive launch of MyBeST by ST addresses these challenges and is expected to facilitate further direct investment under the Corporate Renewable Energy Supply Scheme (CRESS), a key driver for market expansion and liberalisation, with projected direct investments exceeding RM10bn.

Beyond the BESS projects, the company is also actively developing hyperscale data centers that integrate solar power with storage solutions. Additionally, it continues to expand its renewable energy portfolio across both Malaysia and Australia, reinforcing its commitment to sustainable energy infrastructure.

In light of these significant developments and robust future prospects, an investment bank maintains its positive recommendation on the company, signaling confidence in its continued growth trajectory and strategic initiatives.