Malaysia has opened competitive bidding of solar plants worth around RM4 billion for one gigawatt ( GW), the largest capacity offered under its Large Scale Solar (LSS) scheme.
Public Investment Bank Bhd reported that the previous three LSS cycles had capacities ranging from 370 Megawatts ( MW) to 500 MW. The Ministry of Energy and Natural Resources, through the Energy Commission, is seeking proposals for the creation of the fourth cycle of LSS (LSS4) projects through a competitive bidding mechanism.
The solar plants under LSS4 are expected to begin operating no later than December 31 2023, as each plant ‘s development would take up to 18 months. LSS4 proposes a 1.0GW solar quota through the bidding phase and is available to full-owned local companies or to companies classified on Bursa Malaysia with at least 75 per cent local shareholding.
Two packages offered through the tender are 500MW for capacity from 10MW to 30MW, and another 500MW for capacity from 30MW to 50MW. Projects are scheduled to be completed for each LSS plant by end-2023, with a period of 21 years. In fact, PublicInvest claims that Cypark Resources Bhd will profit from the higher ability allocation under LSS4 considering its technological capabilities and experience as the developer and operator of solar parks. Mega First Company Bhd also planned to move into Peninsular Malaysia’s clean energy room following successful development of its Don Sahong hydropower project in Vietnam.
Solarvest Holdings Bhd, Malakoff Corp Bhd, YTL Power International Bhd and Tenaga Nasional Bhd could also be other beneficiaries. The deadline for the LSS4 bid submission had been reduced from six months to three months, PublicInvest said. The provisional deadline for bid submission is August 29, although it is planned to reveal the shortlisted bidders by the end of this year.
PublicInvest said there was no announcement of the reference price this time.
In the third round the bidding demand varies from 17 sen to 58 sen per kiloWatt hour ( kWh). The company believes the LSS4 reference price would be roughly the same as LSS3.
Renewable electricity (RE) produced by LSS plants, Feed-in Tariff and Net Electricity Metering developers has exceeded eight percent of the energy mix. In Peninsular Malaysia RE generation includes toxic waste, minor hydro , biomass, biogas, geothermal and solar waste.