LSS programme back with 2GW quota, up to 500MW per developer

• The latest LSS programme will introduce a new category of floating solar with a total quota of 500MW.

KUALA LUMPUR (Jan 26): The government will soon open up bids for Malaysia’s fifth large-scale solar (LSS) photovoltaic programme, with a quota of up to 2GW of which a developer can bid for up to 500MW.

The Energy Commission will issue request for proposal (RFP) documents from April 1 for the programme following a three-year hiatus.

The latest LSS programme will introduce a new category of floating solar with a total quota of 500MW.

It will also raise the application limit of a company to up to 500MW, according to a statement by the Ministry of Energy Transition and Public Utilities.

“The Execution of LSS programme will be conducted via bidding and with a bigger scale, to ensure a developer selection process that is transparent and fair, as well as to obtain power generation tariff offers at the most competitive rates,” the statement said.

LSS programmes had seen a lull since its fourth awards in 2021, amid project hiccups due to sharp jump in solar panel prices which affected execution of projects won by some bidders who bid at too competitive tariffs at the time.

The awards at the time had a maximum capacity of 50MW per project. A separate programme introduced later, the Corporate Green Power Programme (CGPP) — which entails individual consumers to sign power purchase agreements with a solar project developer — saw a capacity of 30MW per project made available.

400MW Low Carbon Energy Generation Programme revealed

On top of the LSS, the government has also introduced a Low Carbon Energy Generation Programme with 400MW total quota, under the New Enhanced Dispatched Arrangement (NEDA) mechanism.

This is to open up opportunities for other low-carbon power generation, such as small hydro, biogas, biomass, hydrogen and the likes.

“Participation is based on first come, first serve basis and application can be made from Feb 5, 2024 on the official website of Single Buyer at www.singlebuyer.com.my,” the statement said.

This program may increase electricity supply reliability by diversifying the renewable energy generation sources, and open up new economic activities for developers in alternative non-solar RE generation, it added.

Aside from the LSS and the aforementioned programme, the government has also added a 400MW quota under the Net Energy Metering (NEM) mechanism, comprising 100MW for the household segment and another 300MW for the commercial and industrial segment.

The integrated renewable energy programme for 2024 will support the energy transition initiative and carbon footprint reduction envisioned by the government, the ministry said.

It will also generate a spillover effect on the economy, in the form of direct investments of around RM12 billion in the RE industry, and create at least 36,000 job opportunities for the public, it added.

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