RM 0.1768/kWh Lowest Bid For Malaysia’s LSS4 Round

Malaysia's Energy Commission Suruhanjaya Tenaga (ST) has shortlisted bidders, read winners, for its large scale solar (LSS) round 4 or LSS 4, selecting a total of 823.06 MW in total bids. Launched in June 2020, the LSS 4 round offered to contract 1 GW AC solar power capacity in Peninsular Malaysia (see Malaysia Launches 1 GW Solar Tender).

According to the list released by ST, it has shortlisted 323.06 MW under package 1 for projects within 10 MW to 30 MW range. For this category, the accepted tariff range was discovered as RM 0.1850 per kWh to RM 0.2481 per kWh ($0.045 per kWh to $0.060 per kWh).

Another 500 MW was selected under package 2 for plant capacity of 30 MW to 50 MW with all projects shortlisted having 50 MW capacity each. Tariffs offered for this category ranged between RM 0.1768 per kWh to RM 0.1970 per kWh ($0.043 per kWh to $0.048 per kWh).

Projects selected under the auction process are required to come online in 2022 and 2023.

One of the winners of a 50 MW AC/75 MW DC project in the tender is TNB Renewables Sdn. Bhd., (TRe) the renewable energy arm of national utility Tenaga Nasional Berhad (TNB) which announced it has received a letter of notification as a shortlisted bidders from the ST for the said project. It will develop this project at Bukit Selambau in Kedah region. It added that the letter requires it to fulfill certain requirements to be issued by the commission in due time.

Another local solar power company, Solarvest Holdings Berhad said it was shortlisted as one of the successful bidders for 3 projects in LSS 4 round, with a combined capacity of 50 MW. Through its subsidiary Atlantic Blue Sdn. Bhd., it will build a 25 MW and a 12 MW project in Perak's Manjung, along with a 13 MW facility in Kuala Selangor. Solarvest said it is also bidding for EPC contracts from other successful bidders in the LSS@Mentari program under which ST conducts the LSS tender rounds.

ST has so far awarded 1.348 GW solar power capacity in the last 3 LSS rounds, and in the previous LSS 3 round, it awarded 491 MW out of 500 MW tendered with the lowest winning bid of RM 0.178 per kWh (see Malaysia Announces Winning Bidders For LSS 3).