Malaysia | Utility-scale BESS moves from policy to project financing

Malaysia’s utility-scale battery storage market has taken another important step forward.

Blueleaf Energy and Universal Peak have reached financial close with United Overseas Bank (UOB) for a 100 MW / 400 MWh utility-scale Battery Energy Storage System (BESS) project in Bukit Kayu Hitam, Kedah.

The project is being developed under Malaysia’s inaugural MyBeST programme and will now move into construction under a Build-Own-Operate (BOO) model, with commissioning targeted for mid-2027.

🔋 Project highlights:• 100 MW power capacity• 400 MWh energy storage• 4-hour duration• UOB as sole lender• BOO development model• Commercial operation targeted for mid-2027

🔎 Why does this matter?

Malaysia’s BESS story is moving beyond policy announcements and tender activity.

The progression is becoming increasingly clear:

MyBeST → Financial Close → Construction → Commercial Operation

And this is happening alongside the country’s latest solar expansion plans.

Malaysia’s MyBeST programme targets 400 MW / 1.6 GWh of grid-scale BESS, while the recently launched LSS6 programme combines 2.5 GW of solar capacity with 1.25 GW of BESS.

Together, these initiatives point toward a broader transformation of Malaysia’s power system:

☀️ More utility-scale solar🔋 More grid-scale storage⚡ Greater system flexibility📈 Higher renewable energy penetration

For the BESS industry, the key takeaway is simple:

Malaysia is gradually moving from creating a market for energy storage to building the actual assets needed to support a renewable-heavy grid.

The next question is how quickly financing, construction and commissioning will translate Malaysia’s BESS pipeline into operational capacity.