Malaysia and Australia are working together to close the knowledge gap on battery performance in tropical climates

Malaysia has set an ambitious target to increase its renewable energy share to 70% by 2050. Meeting this goal will require investment in reliable, safe and cost-effective energy storage solutions—such as battery energy storage systems—to manage intermittency, maintain grid stability and address peak demand challenges, particularly for solar generation.

Battery energy storage systems behave differently in hot and humid climates, yet most available research has been developed for cooler regions. For Malaysia, this gap affects how batteries are selected, designed and managed in conditions where heat and humidity significantly influence performance, safety and lifespan.

Recognising the need for climate-specific evidence, Malaysia's Sustainable Energy Development Authority (SEDA) and Australia’s national science agency CSIRO, undertook a joint study — supported by P4I — to assess how different battery chemistries perform under Malaysia’s tropical conditions.

The report Insights on Consumer-based Battery Energy Storage Systems in the Tropical Climate of Malaysia reviews six battery chemistries. It provides a structured overview of factors that shape how battery energy storage systems operate in tropical environments and establishes a clear baseline for future planning and deployment across residential, commercial and industrial applications

Speaking to P4I, Dr Mahathir Almashor, Senior Engineer, Energy Systems Program, CSIRO, said:

“This study was shaped by both scientific interest and practical relevance. Most international battery research comes from cooler regions including Japan, China, Europe and the United States. This creates a knowledge gap for countries operating in hot and humid climates. Malaysia’s conditions, together with SEDA’s strong interest in the topic, made it a natural partner. The findings are also highly relevant for northern Australia, where similar tropical environments exist.”

The study highlights several factors that shape how storage systems perform in Malaysia’s climate. “Consistently high temperatures can accelerate side reactions leading to shorter life and higher risk of thermal runaway. However, Malaysia’s relatively stable temperature range offers more favourable conditions for most battery chemistries,” said Dr Almashor. “Malaysia’s stable temperature range (22-32°C) also avoids the deep seasonal temperature swings that accelerate degradation in colder regions.”

However, consistently high humidity — often reaching 80–90% — remains a significant challenge.  Dr Almashor explained: “humidity can accelerate corrosion and contribute to failures, even when battery energy storage systems are housed in climate-controlled enclosures. This risk is exacerbated by the lack of dedicated studies to the effects of humidity and salinity on specific chemistries. This report is a strong start in highlighting this research gap and its associated challenges.”  

Mr Saiful Hakim Abdul Rahman, Director, Strategic Planning, SEDA emphasised that these findings reinforce the need for climate-appropriate system design, including protective enclosures, ventilation and thermal management tailored to Malaysian conditions.

“This research will support several policy processes, including the development of standards, guidelines and frameworks for safe, economically sound battery energy storage systems deployment," said Mr Rahman.

The SEDA team said that the report’s international benchmarking is particularly valuable as Malaysia prepares updates to its National Renewable Energy Policy and Action Plan and continues implementing the National Energy Transition Roadmap.  

“They will also inform SEDA’s training modules and technical materials, ensuring climate-related considerations—such as enclosure design, thermal management and chemistry suitability—are incorporated in industry guidance,” said Mr Rahman.

Both SEDA and CSIRO see opportunities to extend the work. SEDA identified several areas where further analysis would be valuable, including cost–benefit assessments for battery energy storage systems at different points in the grid, the development of a national-level energy storage roadmap, and studies on repurposing electric vehicle batteries for stationary applications. The team also expressed interest in exploring reverse power flow (from consumer to grid), drawing on Australian experience to support more flexible integration of distributed energy resources (DER) such as rooftop solar.  

CSIRO, meanwhile, noted that the study has already attracted interest from other Southeast Asian technical agencies and research partners beyond Malaysia, reflecting a wider regional appetite for evidence on tropical storage.  

“There is interest in exploring a second phase of work, potentially extending the research to other Southeast Asian contexts,” indicated Dr Almashor.

The report was presented at the Battery Energy Storage Systems Forum, a pre-event to the International Sustainable Energy Summit (2026).  

Commenting on the findings, Mr. Koh Keng Sen, Chief Operating Officer, SEDA, said it was a timely contribution to Malaysia’s evolving energy landscape.  

“I see this report as a strategic tool for guiding battery energy storage systems deployment across diverse use cases. It provides granular insights into battery performance under tropical stressors and aligns technical feasibility with policy and market mechanisms,” he said.  

“This kind of integrated analysis is essential for scaling storage solutions that support grid flexibility, decarbonisation, and long-term energy security.”

As more countries consider large-scale storage in tropical environments, the knowledge generated through partnerships like this can form part of a common reference point for future projects and regional planning.