The government will launch a framework on environmental, social and corporate governance (ESG) standards by year-end to help local companies transition into renewable energy, said International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz today after inspecting the BESS prototype, an energy storage system that stores and manages excess power during the generation of renewable energy.
He said the framework will focus on small and medium enterprises (SMEs) to help them in terms of funding and capacity building for export.
“A lot of our export markets are asking exporters to be ESG-compliant, so we need to prepare our companies, especially our SMEs to transition to be more ESG-compliant,” he told reporters.
The BESS system was developed by Citaglobal Genetec Sdn Bhd, a special-purpose vehicle formed by Citaglobal Bhd and Genetec Technology Bhd. Tengku Zafrul said one of Malaysia’s competitive advantages was renewable energy and local innovation such as MYBESS would attract more investment into Malaysia.
“The framework involves consultations with the industry as well. We want to be fair because we do not want to come out with a policy that is not in line with what the industry is ready for,” he added.
Earlier in his speech, Tengku Zafrul said the presence of MYBESS can serve as one of the main initiatives under the National Automotive Policy 2020 to support the development of the Electric Vehicle Interoperability Centre (EVIC).
“This will further enhance the smart grid integration between electric vehicles and infrastructure in Malaysia. This development will support both upstream-downstream industries and complete the demand-supply of battery’s repurposing, power generation and carbon reduction initiatives,” he added.
According to Zafrul, Malaysia is already building a position in the eMobility space with global brands. Amongst some of the highlights are such as the Mercedes’ first locally assembled battery electric vehicle in Pekan, the EQS, Volvo’s hub for electric vehicle production in Shah Alam, the entry of world leading electric vehicle makers BYD, Great Wall Motor, and recently, Tesla.
Tengku Zafrul said that at one megawatt per unit, MYBESS is industrial capacity ready, while also being viable for homes, retail services such as electric vehicles charging stations, micro industries, businesses, markets and rural electrification.
“Today’s launch of Malaysia’s first BESS solution, MYBESS, is a pivotal moment that will help catalyse the local renewable energy ecosystem and the decarbonisation of the country’s economy over the mid- to longer term,” he said, adding that all efforts contribute to Malaysia’s efforts to achieve the Net Zero Carbon commitment by 2050, while improving the overall quality of lives and access to key enabling facilities and amenities for the rakyat.
“And we must capitalise on this first-to-market advantage to embed this Malaysian-grown MYBESS solution in the global renewable energy supply chain.
“By doing so, we can pave the way for Citaglobal Genetec BESS and many more Malaysian companies to develop this early mover advantage in the renewable energy space that is rapidly unfolding, but looks set to have a long runway ahead of it,” he added.
