The Malaysian Energy and Natural Resources Ministry via the Energy Commission (EC) has announced this year’s competitive bidding for the development of a 1,000 MW Large-Scale Solar (LSS) photovoltaic (PV) power plant (LSSPV) in Peninsular Malaysia. Applications are open to 100% locally owned companies incorporated, or with at least 75% local shareholding for companies listed on the Malaysia stock market, starting 31 May 2020. The closing date for the submission of bids is September 2, 2020.
This is the fourth year of the LSS program (LLS4), a competitive bidding program to drive down the Levelized Cost of Energy (LCOE) for the development of large scale solar photovoltaic plant (LSS). The Energy Commission is the implementing agency for this scheme.
In the first round of the LSS held in 2016, the government allocated 200 MW of generation capacity in peninsular Malaysia and 50 MW in Sabah, northern Borneo. In the second tender held in 2017, 360 MW was allocated in the peninsula and 100 MW across Sabah and the islands of Labuan. In LSS3, tenders were issued for projects with total generation capacity of 500 MW. A project size limit of 50 MW in the first round was reduced to 30 MW in the second tender. In the third round, the project size was 90-100 MW.
The bidding packages for LSS4 will be divided into two. The first package has a total quota offered 500 MW with a capacity range for individual projects between 10 MW and less than 30 MW. The second package comes with 500 MW total quota and with a capacity range offered between 30 MW and 50 MW.
The lower project size is intended to encourage more smaller local solar industry players to participate in the bid. Each developer can make a maximum of only three bids. LSS4 is expected to generate MYR 4 billion (USD 937 million) of investment and create around 12,000 job opportunities. The solar power plants under this program are expected to start operating by 31 December 2023.
(Sources: The Edge Market; Malay Mail)