KUCHING: Malaysia’s renewable energy ambitions will depend not only on installing more solar panels, but also on strengthening grid infrastructure, expanding battery energy storage systems (BESS) and addressing industry readiness.
Renewable energy integration specialist Umar Muftah Sulaiman said the country’s energy transition must balance sustainability, reliability and affordability to ensure renewable energy can be deployed without compromising electricity supply.
“One of the biggest questions today is how we accelerate renewable energy adoption while maintaining system reliability,” he said during a webinar on Industrial Decarbonisation Through Energy Efficiency and Renewable Energy on Friday.
According to Umar, the rapid growth of solar photovoltaic (PV) systems is driven by their relatively low upfront costs, faster deployment and alignment with global climate commitments under the Paris Agreement, which seeks to limit global warming to below 2°C while pursuing efforts to keep it within 1.5°C.
Malaysia’s National Energy Transition Roadmap (NETR) projects renewable energy to account for about 70 per cent of the country’s installed electricity capacity by 2050, with solar PV expected to contribute the largest share.
However, Umar cautioned that increasing solar generation also introduces greater variability to the national grid because electricity output fluctuates with weather conditions.
Rather than describing solar as unreliable, he said it should be recognised as a variable energy source that requires better engineering solutions and supporting infrastructure.
“Our existing electricity grid was designed around predictable power generation and demand.
“As renewable energy grows, the grid itself must evolve to accommodate intermittent generation,” he said.
He identified BESS as one of the most effective technologies for maintaining grid stability, noting that batteries can smooth fluctuations in renewable energy output, provide spinning reserve, regulate grid frequency, perform peak shaving and shift electricity loads during periods of high demand.
He added that beyond supporting renewable energy integration, battery storage can also improve the overall resilience and operational flexibility of the electricity network.
Despite the technology’s potential, Umar acknowledged that several barriers continue to slow industrial adoption of renewable energy.
These include shortages of skilled personnel, uncertainty in regulatory implementation, high upfront investment costs and concerns over return on investment (ROI), particularly for businesses considering battery storage alongside solar installations.
He said industries should avoid evaluating renewable energy projects solely based on electricity bill savings.
Instead, companies should consider the broader value of improved energy security, operational resilience and long-term sustainability.
“Every investment should be assessed based on the problem it solves, not only on immediate financial returns,” he said.
Umar also urged businesses to follow a structured decarbonisation pathway by improving energy efficiency before investing in renewable energy technologies.
He said companies should first reduce unnecessary energy consumption, then replace remaining electricity demand with cleaner energy sources before considering carbon offsetting or renewable energy purchases from third parties.
For small and medium enterprises (SMEs), he recommended beginning with manageable improvements rather than pursuing large-scale projects immediately.
“Start with small steps. Understand your own energy consumption first, optimise it, and only then transition to renewable energy,” he said.
Looking ahead, Umar said industry players should also begin preparing for the next phase of the energy transition beyond solar and battery storage.
He noted that battery systems emerged only after solar deployment reached maturity, and a similar cycle is likely to occur as new technologies and business opportunities develop.
“Stakeholders should already be thinking about what comes after solar and battery storage so they can stay ahead of future industry needs,” he said.
He added that continuous learning, long-term planning and adaptability would be essential as Malaysia progresses towards a low-carbon economy.
