RM2B SOLAR PROJECTS UP FOR GRABS
Competitive bidding process is open for 6 months until August, says Yeo
MALAYSIA has opened bids to undertake RM2 billion worth of solar projects this year and analysts said the move would open up more opportunities to power sector incumbents and new entrants.
The capacity to be tendered will be between one megawatt (MW) and 100MW, with a target aggregate capacity of 500MW in Peninsular Malaysia.
The projects are under the third round of large-scale solar (LSS) scheme to increase electricity generation from renewable energy, said Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin.
The government was expected to finalise the tenders by yearend, said Yeo.
She said the competitive bidding process was open for six months until August.
“This is an open tender. Whoever gives us the lowest price for the first 500MW, having passed all the required financial and technical qualifications, will be the winner,” she said at a press conference, here, yesterday.
Contractors for the engineering, construction and commissioning sections must be 100 per cent locals, said Yeo.
Analysts said the latest round of LSS projects would benefit the likes of Cypark Resources Bhd, given its technical expertise and experience as a developer and operator of solar parks, and Mega First Corp Bhd.
“Mega First has voiced intentions of venturing into renewable energy after the successful operation of its Don Sahong hydropower plant in Vietnam,” said Public Investment Bank Bhd.
Other beneficiaries may include Malakoff Bhd, YTL International Power Bhd, Tenaga Nasional Bhd and Ranhill Holdings Bhd.
PublicInvest said the first two cycles of LSS projects had a total installed capacity of 958MW.
The firm said five projects with capacities of 131MW had reached their commercial operation status, with the remaining having a commission operation date this year and next year.
“This is a positive development, considering the government’s plan to increase the generation of electricity from renewable sources from two per cent currently to 20 per cent by 2025.”
This means another 3,991MW of new energy capacity will be required.
The government also plans to increase electricity generation through various other feed-intariff sources, namely biogas, biomass, geothermal mini-hydro as well as solar and net-energymetering mechanisms.