The Malaysian government has launched a new round of competitive bidding for 500 MW of grid-connected solar projects, the third under the country's Large Scale Solar (LSS) programme. Projects with capacities ranging between 1 MW and 100 MW can take part in the competition and submit bids under the request for proposals (RfP) procedure until 19 August 2019. Foreign bidders involved in consortium will be allowed to take up to 49% in the projects, which are expected be commissioned in 2021 and will sell the produced electricity to the state-run power utility Tenaga Nasional Berhad (TNB) under power purchase agreements (PPAs). The process is slated to raise MYR2bn (approximately US$490m) in investment.
The LSS tender scheme was introduced in 2016 to replace the feed-in-tariff (FiT) system. The latest round took place in December 2017 and attracted 1.6 GW of proposals with bids ranging between MYR0.33/kWh (US$8.1c/kWh) and MYR0.53/kWh (US$13c/kWh). It was heavily oversubscribed and a total of 563 MW of projects were awarded, exceeding the initial targeted capacity of 460 MW.
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