Malaysia Greenlights USD 1.43 Billion in Solar Projects, Including Largest Floating Plant, Under 2030 Energy Goals

October 2025

The Ministry of Energy Transition and Water (PETRA) of Malaysia has approved 13 large-scale solar (LSS) projects under the LSS PETRA 5+ programme, including one of the country’s largest floating solar plants, with a combined capacity of 1,975 megawatts alternating current (MWac), the highest capacity granted since the LSS programme began in 2016. Announced on September 2, 2025, these projects were selected through an open bidding process launched on January 20, 2025, targeting 2,000 MWac of solar capacity. The bidding was divided into two packages: conventional solar power plants (30 MWac to 500 MWac, with a 1,500 MWac quota) and floating solar plants on water bodies (10 MWac to 500 MWac, with a 500 MWac quota), requiring at least 51% local ownership to ensure significant Malaysian involvement.

The competitive bidding process attracted 37 applications with a total capacity of 4,073 megawatt (MW), doubling the available quota, indicating robust interest from the renewable energy sector. The approved projects are expected to attract MYR 6 billion (approximately USD 1.43 billion) in investments and create 12,000 jobs in the renewable energy industry. Electricity generation from these plants is scheduled to commence between 2027 and 2028, supporting Malaysia’s long-term energy transition objectives.

These initiatives are a key part of Malaysia’s strategy to increase the share of renewable energy in the national electricity supply to 70% by 2050, significantly reducing the carbon footprint of the electricity sector. The projects align with the sustainability principles of Malaysia MADANI (a national policy framework emphasizing sustainability, inclusivity, and prosperity), enhancing energy security and fostering economic growth through clean energy development. By advancing solar infrastructure, Malaysia is positioning itself as a leader in Southeast Asia’s renewable energy landscape.

(Source: Business Today)

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