Malaysia will launch its sixth Large-Scale Solar (LSS6) program, offering 2,500 megawatts (MW) of solar generation capacity integrated with battery energy storage systems (BESS), as the government steps up efforts to accelerate the country’s energy transition and expand renewable energy capacity.
The Ministry of Energy Transition and Water Transformation (PETRA) said on Thursday that the program will comprise 2,500MW of solar capacity paired with 1,250MW of battery storage, alongside a separate 150MW solar allocation dedicated to Bumiputera companies in Peninsular Malaysia.
The latest round of the large-scale solar initiative builds on earlier programs that helped expand Malaysia’s solar industry and lower electricity generation costs through competitive bidding.
Under LSS6, projects will be offered through three packages. Package 1 will consist of an open tender for 2,200MW of solar capacity and 1,100MW of BESS.
Package 2 will be a Bumiputera-only open tender involving 300MW of solar and 150MW of BESS. Package 3 will allocate 150MW of solar capacity without battery storage exclusively to Bumiputera developers.
PETRA said the introduction of battery storage marks a key enhancement to improve the stability, flexibility and reliability of the national power system as Malaysia increases the share of renewable energy in its electricity mix.
To promote broader participation while maintaining competitiveness, bid sizes for Packages 1 and 2 will range from 60MW to 500MW, while Package 3 projects will range from 10MW to 30MW.
Developers will be required to demonstrate experience in solar project development, although prior experience in battery storage projects will not be mandatory.
The ministry also said preference will be given to projects that utilize domestically manufactured renewable energy products, including solar photovoltaic modules, in support of local industry development.
Project development will focus on areas with strong electricity demand growth, particularly the southern region of Peninsular Malaysia, where demand is expected to rise amid rapid industrial and economic expansion.
All LSS6 projects are targeted to achieve commercial operation by December 31, 2029.
The government expects the program to attract between MYR 13 billion ($3.19 billion) and MYR 15 billion ($3.68 billion) in private investment and create between 15,000 and 20,000 jobs during the development and construction phases.
PETRA estimates the projects will reduce carbon dioxide emissions by around 2.6 million tons annually, supporting Malaysia’s low-carbon development goals and energy transition agenda.
Separately, the dedicated Bumiputera solar program under Package 3 is expected to generate nearly RM500 million in investment opportunities.
The initiative aims to encourage the participation of smaller Bumiputera companies in the renewable energy sector through projects ranging from 10MW to 30MW.
Request for Proposal (RFP) documents for Packages 1 and 2 will be available from July 27 to Aug. 7, while RFP documents for Package 3 will be offered from Aug. 17 to Aug. 28.
The launch of LSS6 forms part of Malaysia’s broader strategy to expand renewable energy deployment and strengthen energy security while supporting the country’s transition towards a lower-carbon economy.