OGX Group Bhd has announced its entry into Malaysia’s renewable energy sector, focusing on battery energy storage systems (BESS) through its wholly owned subsidiary, OGX Green Tech Sdn Bhd. The move comes as both commercial and industrial users, as well as homeowners, seek greater control over electricity costs amid significant changes to the country’s power tariff structure.
The company’s decision follows a substantial increase in maximum demand charges for commercial and industrial (C&I) customers. According to OGX Green Tech solutions director Matthew William Teng, the maximum demand charge rose by 162% after the implementation of a new time-of-use tariff structure in July 2025. Prior to the change, the charge was RM37, which increased to RM97.06 under the revised system, comprising a capacity charge of RM30.19 and a network charge of RM66.87.
This sharp rise in costs has driven the market toward adopting peak-demand management strategies, including solar power combined with battery energy storage technology, to mitigate maximum demand expenses. Teng highlighted that Malaysian homeowners are also increasingly adopting solar systems for self-consumption (Selco) paired with battery storage to reduce reliance on the grid. This approach offers greater insulation from electricity rate fluctuations, enhanced control over energy usage, and the potential for faster returns on investment compared to traditional export models, which remain subject to policy and cost changes.
The partnership underpinning OGX’s expansion involves China-based Zhejiang Hyxi Technology Co Ltd (HYXI), an energy storage and inverter specialist. OGX Green Tech has been appointed as HYXI’s authorized distributor in Malaysia, enabling the company to leverage HYXI’s technology and product expertise alongside its own local market access, distribution channels, and systems integration capabilities.
OGX executive and managing director Tan Suan Loong emphasized that the collaboration provides a strong foundation to establish and grow OGX’s presence in the energy storage market as a complementary vertical to its existing operations. This initiative is expected to broaden OGX’s revenue base while positioning the group to benefit from Malaysia’s ongoing energy transition.
Moreover, OGX Green Tech plans to address the increasing demand for energy storage solutions in Malaysia’s rapidly expanding data centre sector. This industry is seeking cleaner and more reliable alternatives to conventional diesel generators to support the growing needs driven by artificial intelligence, cloud computing, and other data-intensive applications.
Overall, OGX’s entry into the renewable energy space reflects broader market trends driven by shifting regulatory frameworks, rising energy costs, and the growing emphasis on sustainable and cost-efficient power solutions in Malaysia.