LSS6 To Boost Renewable Energy Capacity, Full Commercial Operation Targeted By End-2029

Kuala lumpur: The government will implement the Large Scale Solar 6 (LSS6) programme as part of its commitment to accelerating the nation's energy transition and expanding renewable energy (RE) generation capacity, with projects scheduled to be commissioned in phases and targeted to achieve full commercial operation by Dec 31, 2029.

According to BERNAMA News Agency, the Ministry of Energy Transition and Water Transformation (PETRA) said the programme will offer a total quota of 2,500 megawatts (MW) of solar capacity together with 1,250MW of Battery Energy Storage System (BESS), as well as 150MW of solar capacity dedicated to Bumiputera companies in Peninsular Malaysia.

"The implementation of LSS6 builds on the success of previous LSS programmes, which have strengthened the domestic solar industry while lowering electricity generation costs through a transparent, market-based bidding mechanism.

"To encourage broader industry participation, LSS6 will be implemented through three packages. Package 1 comprises an open tender for all developers covering 2,200MW of solar capacity and 1,100MW of BESS capacity.

Package 2 is an open tender for Bumiputera companies involving 300MW of solar capacity and 150MW of BESS, while Package 3 comprises 150MW of Bumiputera solar programme without BESS," it said in a statement today.

The ministry said several policy enhancements have also been introduced to ensure that capacity allocations are implemented fairly, transparently and competitively.

These include the development of large-scale solar plants integrated with BESS to enhance the stability, flexibility and reliability of the national electricity supply system, as well as giving priority to bidders using domestically manufactured photovoltaic solar modules.

It added that project development will focus on strategic areas with strong electricity demand growth, particularly in the southern region of Peninsular Malaysia, to optimise generation planning and the national electricity transmission system.

The ministry said the implementation of LSS6 is expected to attract between RM13 billion and RM15 billion in private investment and create between 15,000 and 20,000 jobs during the development and construction phases.

"In addition, the programme is projected to reduce carbon dioxide (CO2) emissions by approximately 2.6 million tonnes annually, thereby supporting the country's commitment to a low-carbon energy transition and sustainable development goals," the statement said.

To encourage the participation of small Bumiputera companies in the renewable energy industry, PETRA said a special programme under Package 3 will be implemented separately without BESS installation, with smaller-scale solar projects between 10MW and 30MW.

"The programme is expected to generate investment opportunities worth nearly RM500 million for Bumiputera companies," it said.

It added that the Request for Proposal (RFP) documents for Packages 1 and 2 will be available from July 27 to Aug 7, while those for Package 3 will be available from Aug 17 to 28, at the Energy Commission headquarters here.