Five bidders set to secure 490 MW in Malaysia’s third solar auction

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Malaysian energy regulator Suruhanjaya Tenaga has named the five shortlisted bidders for the final phase of Projek Loji Jana Kuasa Solar Berskala Besar Pusingan Ketiga – or Large Scale Solar (LSS) 3, the third round of the national procurement program for utility scale PV.

Four of the bidders have pitched proposals for 100 MW facilities and the fifth a 90 MW project, hinting the 500 MW exercise will be slightly under-subscribed.

One of the four 100 MW projects – to be developed in Marang in the state of Terengganu – was submitted by a consortium formed by German developer ib Vogt and Malaysian company Coara Solar and a second 100 MW project in Marang was offered by Cypark Resources Bhd and Impian Bumiria Sdn Bhd.

The third shortlisted 100 MW project is being planned in Kerian, in Perak state, by a consortium led by French energy giant Engie and Malaysian company TTL Energy Sdn Bhd. The fourth 100 MW facility – planned in Pekan in the state of Pahan – has been submitted by local company Konsortium Beseri Jaya Sdn Bhd and the Singapore unit of South Korea’s Hanwha Group.

The 90 MW project was offered by Spanish developer Solarpack with Malaysian clean energy outfit JKH Renewables, in Kuala Muda in Kedah state.

Commissioning date

The projects will have to begin commercial operation in 2021.

The auction attracted 112 bids for more than 6.73 GW of generation capacity. The lowest solar energy price offered in the tender was MYR0.17777/kWh ($0.042).

The LSS tender program was introduced by the Malaysian government in 2016 to replace feed-in tariffs. In the first round of the LSS, held that year, 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. A project size limit of 50 MW in the first round was reduced to 30 MW in the second tender, which attracted bids for 1.6 GW of solar capacity at prices of MYR0.33-0.53/kWh.