BKHM BESS Sdn Bhd, a consortium formed by Blueleaf Energy and Universal Peak Sdn Bhd, has reached a significant milestone in the development of Malaysia’s energy storage sector by signing two key agreements with Tenaga Nasional Berhad (TNB). The company has successfully executed a Battery Energy Storage System Service Agreement (BESSA) and a Connection Agreement (CA), establishing the commercial and technical foundations required to move forward with its large-scale battery energy storage project.
The agreements pave the way for the implementation and grid integration of a 100MW / 400MWh utility-scale Battery Energy Storage System (BESS), one of the most significant energy storage projects currently being developed in Malaysia. The project is being delivered under a Build, Own, and Operate (BOO) model and was awarded through the country’s first Malaysia Battery Energy Storage System (MyBeST) programme, launched by the Energy Commission (Suruhanjaya Tenaga).
The agreements were signed by representatives of both organisations, with TNB represented by its President and Chief Executive Officer, Datuk Ir. Ts. Shamsul Bin Ahmad, and BKHM BESS Sdn Bhd represented by Datuk Ir. Raj Kumar R Gopal Pillai and Alfredo Jakub.The Battery Energy Storage System Service Agreement establishes the primary commercial framework between BKHM BESS and TNB’s Single Buyer, which will act as the off-taker for the project’s services.
Similar in structure to a Power Purchase Agreement (PPA), the agreement defines how the battery storage facility will provide capacity and related services to support the reliability and stability of the national electricity grid. It also outlines key requirements related to system availability, operational performance, dispatch commitments, and service obligations.
The Connection Agreement focuses on the technical aspects of integrating the battery storage facility into Malaysia’s electricity network. It sets out the requirements for grid interconnection, including compliance standards, protection systems, metering arrangements, supervisory control and data acquisition (SCADA) integration, and operational coordination with TNB’s grid management functions.
Together, the two agreements provide a clear framework for the project’s construction, operation, and long-term integration into the national power system.The project represents an important step in Malaysia’s efforts to modernise its electricity infrastructure and accelerate the transition towards a cleaner energy system.
Battery energy storage systems are increasingly viewed as essential components of modern power grids because they can store electricity when supply is abundant and release it when demand increases. This capability helps balance the grid, improve reliability, and support the integration of renewable energy sources such as solar power, whose output can vary throughout the day.
The 100MW / 400MWh facility is expected to play a significant role in supporting the objectives of Malaysia’s National Energy Transition Roadmap (NETR), which aims to achieve net-zero carbon emissions by 2050. By improving grid flexibility and enabling greater use of renewable energy, the project will contribute to the country’s broader sustainability and decarbonisation goals.
Beyond its direct benefits for grid stability, the project is also expected to generate wider advantages for Malaysia’s energy sector. These include strengthening the resilience and operational flexibility of the electricity network, supporting higher levels of renewable energy deployment, enabling future ancillary services that help maintain grid performance, and creating opportunities for local businesses and suppliers to participate in the growing energy storage industry.
With the signing of the BESSA and Connection Agreement, BKHM BESS Sdn Bhd has taken a major step towards delivering one of Malaysia’s flagship energy storage projects. The consortium has stated that it remains committed to developing the project safely and efficiently while supporting the country’s long-term vision for a more reliable, sustainable, and low-carbon energy future.
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