Energy Commission Malaysia Opens New Large-Scale Solar Competitive Bidding Process (LSS PETRA 5+)

On the heels of their statement last month that they had selected shortlisted bidders for the fifth Large-Scale Solar (LSS) programme (‘LSS PETRA’)1, the Energy Commission announced on 17 January 2025 that they will be conducting an additional LSS competitive bidding process known as ‘LSS PETRA 5+2. A total capacity of 2,000MWac is being offered under LSS PETRA 5+, which is equivalent to the capacity that was previously offered under LSS PETRA.
 
OVERVIEW OF LSS PETRA 5+
 
LSS PETRA 5+ comprises two packages as follows:
 
PACKAGE A 
  • For the development of ground-mounted solar energy generating facilities.
  • Quota of 1,500MWac.
  • Permitted generation capacity of 30MW – 500MW.
PACKAGE B 
  • For the development of floating solar farms.
  • Quota of 500MWac.
  • Permitted generation capacity of 10MW – 500MW.
 
The solar projects developed under LSS PETRA 5+ are scheduled to commence commercial operations in 2027.
 
BIDDER CRITERIA FOR LSS PETRA 5+
 
In order to participate in LSS PETRA 5+, a bidder must be either: 
  1. a company incorporated in Malaysia, with a minimum of 51% local Malaysian equity; or 

  2. a consortium with at least one member being a company incorporated in Malaysia, and with a minimum of 51% local Malaysian equity. 
Bidders should have the relevant experience in the development and operation of power generation facilities, and are required to be in compliance with the bidding criteria specified in the Request for Proposal (‘RFP’).
 
OPENING OF LSS PETRA 5+ COMPETITIVE BIDDING PROCESS AND CLOSING DATE
 
The RFP documents will be available for purchase online at the Energy Commission’s website from 9.00 a.m. on 20 January 2025 until 5.00 p.m. on 24 January 2025. A copy of the RFP documents is priced cat RM3,000.00.
 
Bids must be submitted physically to the Energy Commission. The closing date for submission is 3.00 p.m. on 28 February 2025.
 
FULL SPEED AHEAD FOR SOLAR ENERGY IN MALAYSIA
 
LSS PETRA 5+ is somewhat of a surprise, given that the Energy Commission had only recently selected the shortlisted bidders for LSS PETRA. It is also pertinent to note that interested bidders for LSS PETRA 5+ have a very short window of just over one month to prepare their bid submissions. This is unlike previous LSS competitive bidding rounds, which allowed for a period of approximately three months.
 
The expedited timeline is indicative of an increased focus on solar energy as the driver of the growth of the renewable energy sector in Malaysia. It is also reflective of the key role that solar energy plays in the country’s achievement of sustainability targets. We anticipate that notwithstanding the short timeframe, the response to and participation in LSS PETRA 5+ will be positive.
 
 
For enquiries on LSS in Malaysia, please contact Richard Khoo and Rachel Chiah, Partners of the Energy Practice of Skrine.
 
 
1 Our earlier Alert on LSS PETRA (also known as LSS5) is available here.
2 The Energy Commission’s announcement on LSS PETRA 5+ is available here.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.