MALAYSIA has stepped up efforts to future-proof its national energy system with the launch of a large-scale battery storage facility in Terengganu, as Putrajaya intensifies preparations against global supply disruptions, rising energy volatility and climate-related challenges.
Deputy Prime Minister II Datuk Seri Fadillah Yusof said the Santong Battery Energy Storage System (BESS) project represented more than a conventional infrastructure development, describing it as a strategic pillar in Malaysia’s long-term transition towards a cleaner, smarter and more resilient energy economy.
The 100MW/400MWh facility, located at PMU 132/11KV Santong, was officially launched in a ceremony attended by senior federal officials and energy sector leaders, including representatives from Tenaga Nasional Berhad, Energy Commission and Sustainable Energy Development Authority.
Fadillah, who also serves as Minister of Energy Transition and Water Transformation, linked the project directly to growing international instability affecting global supply chains and energy security.
“I would like to touch on the global supply crisis currently affecting the entire world. Global supply disruptions, geopolitical uncertainty and rising international logistics costs have caused food prices, transportation costs and various essential goods to increase in many countries.
“Malaysia is also affected by this situation, but the government remains committed to ensuring the people’s welfare continues to be prioritised in every decision and policy implemented,” he said.
He said the MADANI Government was pursuing a pragmatic strategy centred on stabilising essential supplies, cushioning households from escalating living costs and reinforcing national economic resilience over the long term.
At the centre of that strategy, Fadillah said, was the government’s commitment to balancing the “energy trilemma” — maintaining reliable electricity supply, environmental sustainability and affordability for consumers simultaneously.
“In facing climate change challenges and increasing energy demand, we must ensure the national energy system is capable of supporting economic development without compromising environmental sustainability,” he said.
The Santong BESS facility is expected to strengthen grid flexibility and reliability as Malaysia expands renewable energy generation, particularly solar power, which requires advanced storage systems to manage fluctuations in electricity supply.
Fadillah said the project had established a new benchmark for strategic energy infrastructure development in Malaysia through its rapid implementation and use of advanced technological systems.
“I would like to congratulate TNB on this achievement and its continued commitment to developing strategic energy infrastructure such as the Santong BESS project.
“This effort is extremely important in balancing energy supply and demand while ensuring the national grid system remains stable, flexible and reliable in meeting future energy needs,” he said.
The facility is expected to support electricity demand equivalent to approximately 40,000 households and significantly enhance supply stability across Peninsular Malaysia’s east coast corridor.
Fadillah said improved energy reliability would strengthen industrial activity, reinforce investor confidence and contribute directly to broader economic and social stability.
He also reiterated Malaysia’s commitment to achieving net-zero carbon emissions by 2050 through accelerated renewable energy adoption and grid modernisation initiatives.
“This allows our energy system to become more flexible and prepared to support greater renewable energy usage in a more efficient and secure manner, in line with the government’s aspiration to increase renewable energy penetration towards achieving Net Zero 2050,” he said.
He added that the government would continue strengthening regulatory frameworks, technological investments and strategic collaborations to ensure Malaysia’s energy sector remained competitive amid increasingly complex global challenges.
Fadillah also highlighted broader clean energy initiatives undertaken by TNB, including Large Scale Solar (LSS), Hybrid Hydro Floating Solar (HHFS) and modernisation projects linked to the regional ASEAN Power Grid initiative.
Declaring the Santong Battery Energy Storage System officially operational, he expressed hope the project would catalyse further innovation and investment across Malaysia’s rapidly evolving renewable energy sector. - May 18, 2026
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