Malaysia Likely to Announce Tenders for 500 MW of Solar Projects in 2019

Country also hopes to increase the renewable portion in its energy mix from 2 to 20 percent by 2025


The Malaysian government is likely to come up with an open tender in 2019 for an estimated RM2 billion worth of solar projects. These projects will be announced under the third cycle of the large-scale solar (LSS3) scheme, which is aimed at increasing Malaysia’s electricity generation from renewable energy.

The projects are expected to be of 500 MW capacity.

According to Malaysian media reports, renewable energy constituted 2 percent of the country’s total energy generation mix as of 2016.  However, the Malaysian environment minister Yeo Bee Yin has announced that the government hopes to increase the renewable portion to 20 percent by 2025.

“To achieve the 20 percent RE target, more LSS needs to be added to the system. So far, the government has implemented two LSS project cycles with an installed capacity of 958 MW. Out of the total, three projects with a capacity of 32.5 MW have reached the date of commercial operations. Other projects are expected to start generating energy by the end of 2018 to 2020,” Yeo was quoted as saying in a Malaysian news report.

“In the government’s electricity supply planning, the increase in the proportion of RE in electricity generation would not only reduce carbon emission intensity in the electricity supply sector by 49 percent, but could also result in system cost savings of RM270 million for the period from 2018 to 2037,” Yeo added in a written reply to the Malaysian Parliament.

Malaysia is a growing economy with spiking energy demand. With a fast-growing economy, the nation has chosen to turn to solar to meet energy demand as well as cut down on harmful emissions.

Pöyry, an international consulting and engineering company, recently won a contract to develop 25 MW solar photovoltaic (PV) project in Malaysia. UITM Solar Power Dua Sdn Bhd, a subsidiary of the Universiti Teknologi MARA, has awarded Pöyry with the owner’s engineering (OE) services assignment for the solar PV project.

In April 2018, in an effort to expand the reach of solar power in Malaysia, the country’s leading utility company Tenaga Nasional Berhad (TNB) entered into power purchase agreements (PPAs) for 60 MW of grid-connected solar PV projects.

In March 2018, TNB had entered PPAs with six separate project developers to establish a combined 180 MW of grid-connected solar PV projects. TNB had secured RM 339 million (~$79 million) in financing from Affin Islamic Bank Bhd for a 50 MW large-scale solar project in Selangor, Malaysia. Mercom reported about that deal in August 2017.

In December 2017, Suruhanjaya Tenaga, Malaysia’s Energy Commission, awarded 563 MW of solar projects in its second large-scale solar tender, against an original planned capacity of 460 MW. Those projects are expected to be commissioned by 2020.

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