Energy Storage System (ESS)

Energy storage battery system

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Energy Storage System (ESS)
Energy Storage System (ESS)
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Alternative Energy
Business Model Description

Invest in companies that offer B2B Energy Storage System (ESS) solutions to electric utility providers such as TNB and independent power producers, generating revenue streams from equipment sales, service fees and from selling stored electricity to the grid using Power Purchase Agreements (PPA) and Energy Savings Agreements (ESA) and energy management platforms. Examples of companies active in this space are:

Ditrolic Energy provides fully integrated Battery ESS solutions that enable peak shaving, load shifting, demand response and microgrid applications. Their solutions can be obtained through direct purchase or PPAs. In 2020, Ditrolic Energy secured a USD 15.16 million loan from Maybank for its SunLease programme (17).

Citaglobal Genetec BESS Sdn Bhd is a JV between the MNC Citaglobal Berhad and Genetec Technology to provide large-scale ESS solutions through its 1MW MYBESS prototype, which was successfully piloted in December 2022. The JV will increase the share capital of CG BESS by the 2nd quarter of 2023, where Genetec and Citaglobal shall each subscribe for 249,500 new shares for a sum of USD 108,000 (18).

Cenergi SEA Sdn Bhd: a renewable energy company that is involved in developing energy storage solutions for renewable energy projects. The company's products include battery storage systems and smart energy management systems. Cenergi SEA Sdn Bhd's revenue is estimated at USD 17.7 million (41).

Expected Impact

Improve energy security and supply stability, as well as the energy system reliability and resilience, increase the energy efficiency of economic activities and enhance the low-carbon economy.

How is this information gathered?
Updated: 18 Jun, 2023
Malaysia
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
Price would be dependent on BESS capacity. and type. Costs can range between USD 550,000 to USD 700,000 (per unit cost) (23).
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Responsible Consumption and Production (SDG 12) Climate Action (SDG 13)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10) Gender Equality (SDG 5)

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Sector Sources
  • 1) Economic Planning Unit (EPU). 2021. Malaysia Voluntary National Review (VNR) 2021. https://www.epu.gov.my/sites/default/files/2021-07/Malaysia_Voluntary_National_Review_%28VNR%29_2021.pdf. 2) Ministry of Energy, Green Technology and Water. 2015. National Energy Efficiency Action Plan. https://policy.asiapacificenergy.org/sites/default/files/National%20Energy%20Efficiency%20Action%20Plan%20%28NEEAP%29%20.pdf. 3) SEDA. 2021. Malaysia Renewable Energy Roadmap, Pathway towards low carbon energy system. https://www.seda.gov.my/reportal/wp-content/uploads/2022/03/MyRER_webVer3.pdf. 4) Rohani Salleh et al. 2021. Women Empowerment and Work-Life Balance of Women Engineers in the Malaysian Energy Sector: A Conceptual Framework. https://www.researchgate.net/publication/356258636_Women_Empowerment_and_Work-Life_Balance_of_Women_Engineers_in_the_Malaysian_Energy_Sector_A_Conceptual_Framework. 5) Asian Development Bank. 2021. Climate Risk Country Profile: Malaysia 2021. https://www.adb.org/publications/climate-risk-country-profile-malaysia. 6) Bank Negara Malaysia (Central Bank). 2021. Climate Change and Principle-based Taxonomy. https://www.bnm.gov.my/documents/20124/938039/Climate+Change+and+Principle-based+Taxonomy.pdf. 7) Prime Minister’s Department of Economy, Economic Planning Unit. 2021. Twelfth Malaysia Plan (12MP) 2021-2025 : A Prosperous, Inclusive, Sustainable Malaysia. https://rmke12.epu.gov.my/en. 8) UNDP Malaysia Country Office. 2021. Issue Brief: Advancing Gender Equality in Malaysia. https://www.undp.org/malaysia/publications/issue-brief-advancing-gender-equality-malaysia. 9) The Edge Markets. 2022. Full Budget 2023 Speech. https://maa.theedgemarkets.com/article/full-budget-2023-speech. 10) The Law Reviews.T 2021. The Energy Regulation and Markets Review: Malaysia. https://thelawreviews.co.uk/title/the-energy-regulation-and-markets-review/malaysia. 11) Ministry of Energy, Green Technology and Water. 2017. Green Technology Master Plan 2017-2030. https://www.pmo.gov.my/wp-content/uploads/2019/07/Green-Technology-Master-Plan-Malaysia-2017-2030.pdf. 12) IRENA. 2022. Energy Profile, Malaysia. https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Asia/Malaysia_Asia_RE_SP.pdf. 13) Economic Planning Unit, Prime Minister’s Department. 2022. National Energy Policy 2022-2040. https://www.epu.gov.my/sites/default/files/2022-09/National%20Energy%20Policy_2022_2040.pdf. 14) Azmi & Associates. 2020. Legal Updates on the Solar Energy Industry in Malaysia. https://www.legal500.com/developments/thought-leadership/legal-updates-on-the-solar-energy-industry-in-malaysia-2/. 15) Mordorintelligence. 2023. MALAYSIA RENEWABLE ENERGY MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS (2023 - 2028). https://www.mordorintelligence.com/industry-reports/malaysia-renewable-energy-market. 16) The Sun Daily. 2022. Climate Change Putting National Rice Security at Risk - Minister. https://www.thesundaily.my/local/climate-change-putting-national-rice-security-at-risk-minister-BK8480113. 19) DOSM. 2021. Newsletter DOSM/BPPAS/1.2021/SERIES 17 Renewable Energies. https://www.dosm.gov.my/v1/uploads/files/6_Newsletter/Newsletter%202021/DOSM_BPPAS_1-2021-Series-17.pdf. 20) Government of Malaysia. 2022. Malaysia's Update of its Nationally Determined Contribution. https://unfccc.int/sites/default/files/NDC/2022-06/Malaysia%20NDC%20Updated%20Submission%20to%20UNFCCC%20July%202021%20final.pdf. https://unfccc.int/sites/default/files/resource/MALAYSIA_BUR3-UNFCCC_Submission.pdf.
IOA Sources
  • 21) Bank Negara Malaysia. 2023. Government Securities Yield. https://www.bnm.gov.my/government-securities-yield. 22) BNM. 2023. Stock Information. https://fast.bnm.gov.my/fastweb/public/PublicInfoServlet.do?chkBox=VF230088&mode=DISPLAY&info=STOCK&screenId=PB030900. 23) Abdulla Faruhaan, Yun Ii Go. 2021. Energy storage sizing and enhanced dispatch strategy with temperature and safety considerations: A techno-economic analysis. https://onlinelibrary.wiley.com/doi/full/10.1002/est2.260. 24) MGTC. 2023. Budget 2023: More funds, incentives for green tech to meet net zero target and sustainability agenda https://www.mgtc.gov.my/2023/02/budget-2023-more-funds-incentives-for-green-tech-to-meet-net-zero-target-and-sustainability-agenda/. 25) The Edge Malaysia. 2023. Malaysia lifts RE exports ban and raises 2050 generation capacity goal to 70%. https://www.theedgemarkets.com/node/666169. 26) The Edge Malaysia. 2023. Citaglobal-Genetec JV unveils Malaysia’s first locally produced battery energy storage system. https://www.theedgemarkets.com/node/662928. 27) Our World in Data. 2021. Malaysia: CO2 Country Profile. https://ourworldindata.org/co2/country/malaysia. 29) Statista. 2017. Material footprint per capita in Malaysia from 2005 to 2017. https://www.statista.com/statistics/687338/malaysia-material-footprint-per-capita/. 30) Government of Malaysia. 1974. Law of Malaysia, Act 127, Environment Quality Act 1974. https://www.env.go.jp/en/recycle/asian_net/Country_Information/Law_N_Regulation/Malaysia/Malaysia_mal13278.pdf. 31) Ministry of Women, Family and Community Development. 2021. Statistics on Women, Family and Community. https://www.kpwkm.gov.my/kpwkm/uploads/files/Penerbitan/Buku%20Perangkaan/e-book%E2%80%A2KPWKM%202020-2021%20291122.pdf. 32) World Bank. 2022. Malaysia Economic Monitor - Catching Up : Inclusive Recovery Growth for Lagging States. https://openknowledge.worldbank.org/handle/10986/37531. 33) Free Malaysia Today. 2022. Government Giving more attention to renewable energy says Prime Minister. https://www.freemalaysiatoday.com/category/nation/2022/08/29/govt-giving-more-attention-to-renewable-energy-says-pm/. 34) IsBD. 2019. Country Gender Profile: Malaysia. https://www.isdb.org/women-youth/country-gender-profile-malaysia. 35) UN Department of Economic and Social Affairs. 2022. SDG Indicators Database. https://unstats.un.org/sdgs/dataportal/database. 36) Government of Malaysia. 2020. Report on Penninsular Malaysia Generation Development Plan 2020 (2021 – 2039). https://www.st.gov.my/en/contents/files/download/169/Report_on_Peninsular_Malaysia_Generation_Development_Plan_2020_(2021-2039)-FINAL.pdf. 37) Prime Minister’s Department of Economy, Economic Planning Unit. 2021. Twelfth Malaysia Plan (12MP) 2021-2025 : A Prosperous, Inclusive, Sustainable Malaysia. https://rmke12.epu.gov.my/en. 38) Government of Malaysia. 2011. Law of Malaysia, Act 725, Renewable Energy Act 2011. https://policy.asiapacificenergy.org/sites/default/files/RENEWABLE%20ENERGY%20ACT%202011%20%28ACT%20725%29.pdf. 39) SEDA. Rules and Regulations. https://www.seda.gov.my/policies/rules-and-regulations/. 40) Ditrolic Energy. 2022. Battery Energy Storage System Malaysia: Maximising Clean Energy Performance. https://www.ditrolicenergy.com/en-us/media/publications/innovation/november-2022/battery-energy-storage-system. 17) New Straits Times. 2020. Ditrolic Solar secures Rm70mil loan from Maybank. https://www.nst.com.my/business/2020/04/587133/ditrolic-solar-secures-rm70mil-loan-maybank 44) Statista. 2022. Energy Management.https://www.statista.com/outlook/dmo/smart-home/energy-management/malaysia 18) Market Screener. 2023. Genetec Technology Berhad Announces Joint Venture with Citaglobal Berhad. https://www.marketscreener.com/quote/stock/WZ-SATU-20156314/news/Genetec-Technology-Berhad-Announces-Joint-Venture-with-Citaglobal-Berhad-43450332/ 45) Energy Commission Malaysia. Annual Report 2021. https://www.st.gov.my/en/contents/files/download/87/ST_Annual_Report_2021_Compressed1.pdf 41) Zoominfo. 2023. Cenergi SEA Sdn Bhd. https://www.zoominfo.com/c/cenergi-sea-sdn-bhd/363735775 47) Ministry of Finance.2023. Budget Speech. https://budget.mof.gov.my/pdf/belanjawan2023/ucapan/ub23-BI.pdf 48) MGTC,2022. Guideline for Green Technology Tax Incentive (GITA/GITE) https://www.myhijau.my/wp-content/uploads/2022/05/REC-GTGT-007-GUIDELINES-FOR-GREEN-TECHNOLOGY-TAX-INCENTIVE-GITAGITE.pdf 46) Government of Malaysia. Industry4WRD Policy. 2018. https://www.miti.gov.my/index.php/pages/view/4832 49) Government of Malaysia. Economic & Fiscal Outlook and Federal Government Revenue Estimates 2023. 2023. https://budget.mof.gov.my/pdf/belanjawan2023/ekonomi-fiskal/EUFORE2023_270223.pdf 50) List of Malaysia Sustainable Bond Issuances. Asia Bonds Online. Asian Development Bank. Accessed in May 2023. https://asianbondsonline.adb.org/economy/?economy=MY