In parallel with the Government's direction on renewable energy and solar energy development, the Energy Commission ("EC") has announced the third competitive bidding process to select developers (companies or consortiums) for the development of large scale solar photovoltaic plants ("LSS").

The capacity of the plants to be tendered will be from 1MW to 100MW, with a target aggregate capacity of 500MW and expected commissioning in 2021. As opposed to the previous round of tender, this tender is open to development in Peninsular Malaysia only

The plants will be connected to the grid and will sell energy to Tenaga Nasional Berhad under their respective Solar Power Purchase Agreements. Foreign participation is capped at 49%, as was the position in the previous round of LSS tender exercise.

As a brief background, the first tender was released in 2016 with a total aggregate capacity of 200MW in Peninsular Malaysia and 50MW in Sabah, followed by the second round in 2017 with an increased total aggregate capacity of 360MW in Peninsular Malaysia and 100MW in Sabah/Labuan.

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