By Admin
PETALING JAYA: Hong Leong Investment Bank (HLIB) Research is positively surprised about the country’s large scale solar 6 (LSS6) programme, which is expected to be open for bidding in the second quarter of this year (2Q25).
The research house is expecting to see between RM15bil and RM18bil worth of solar engineering, procurement, construction and commissioning (EPCC) contracts to be formalised over the next 24 months.
This is assuming the LSS6 is of similar size to LSS5 and the recent 2GW LSS5+ announcement by the Energy Transition and Water Transformation Ministry (Petra).
“There are no details on its quota yet, but we think LSS5 (2GW) and LSS5+ (2GW) could be a reasonable indication,” HLIB Research said.
It added that cumulative quotas from just LSS5 and LSS5+ of 4GW is about 28% larger than total quotas awarded from LSS1 to LSS4 programmes and Corporate Green Power Programme.
The research house said the upcoming transmission and distribution upgrades during regulatory period 4 (2025 to 2027) – enabled by record allowable capital expenditure of RM42.8bil – should prepare the grid for new renewable energy (RE) capacity.
Petra announced new RE programmes last Friday to further accelerate developments, including a Community Renewable Energy Aggregation Mechanism which will enable home owners to lease rooftop spaces to third parties (RE developers), creating additional income streams.