Malaysia to Launch LSS6 Program to Boost Renewable Energy Transition

Malaysia is set to launch its sixth Large Scale Solar (LSS6) program, a key initiative designed to accelerate the nation's energy transition and continuously increase its renewable energy capacity. The Ministry of Energy Transition and Water Transformation (PETRA) announced that LSS6 will offer a total quota of 2,500 megawatts (MW) for solar power generation.

This new phase includes integrated Battery Energy Storage Systems (BESS), with 1,250 MW allocated for solar and BESS combined. Additionally, a specific quota of 150 MW is reserved for Bumiputera companies in Peninsular Malaysia, reflecting the government's commitment to inclusive development. The LSS6 program builds upon the success of previous LSS initiatives, which have strengthened the local solar industry and reduced electricity generation costs through transparent, market-based bidding.

To ensure broad and competitive participation, LSS6 will be implemented through three distinct packages. Package 1 involves a tender for LSS + BESS with a capacity of 2,200MW solar and 1,100MW BESS, open to all developers. Package 2 offers LSS + BESS specifically for Bumiputera companies, with a capacity of 300MW solar and 150 MW BESS. Package 3 focuses on solar projects exclusively for Bumiputera companies, without BESS, totaling 150MW solar.

Further enhancements for LSS6 include setting capacity limits per bidder between 60 MW and 500 MW for Packages 1 and 2, and 10 MW to 30 MW for Package 3. Priority will be given to bidders using domestically produced solar photovoltaic (PV) modules. The program targets strategic areas with high electricity demand, particularly in the southern Peninsular region, to optimize generation and transmission planning. Commercial operation is slated to begin in phases, with a target completion date of December 31, 2029. LSS6 is projected to attract RM13 billion to RM15 billion in private investment, create 15,000 to 20,000 jobs, and reduce carbon dioxide emissions by approximately 2.6 million tons annually, supporting Malaysia's low-carbon transition and sustainable development goals.