The Malaysian government intends to launch another solar tender at the end of the year with local requirements, according to an official from the Ministry of Energy, Science, Technology, Environment and Climate Change.
The fourth large scale solar (LSS 4) tender could add as much as 2000MW if the state governments get involved, Undersecretary Wong Ting Song of the Ministry’s Sustainable Energy Division said at a renewable energy conference in Singapore on 12 March.
Kedah, Perlis, Melaka and another seven states have expressed interest and if each state is allocated 200MW, Wong explained that the total capacity to be added in the fourth round will reach 2000MW.
Kedah has bought 1,000 acres of land that could be used for solar power generation, he added.
Under LSS 4, the project engineering and construction will be “given to local solar players” while the procurement will be left up to the project owner, Wong said.
LSS 4 would be the largest among the ever-increasing rounds of solar capacity addition for the country as it strives to source 20% of electricity production from renewable energy by 2025, up from 4% now.
The Undersecretary said that Malaysia will need to add around 4GW of renewable energy from 2019 to 2025 and most of that is expected to come from solar farms.
Proposals for 500MW of solar under LSS 3 are due in August. Wong said the base tariff being discussed is MYR 32 sen (USD 8 cents) per kWh and the tariffs proposed by bidders could drop to MYR 25 sen because of the larger project sizes in this round.
The maximum project capacity has been increased to 100MW from 50MW in 2017. Wong said the tariff fell to 35 sen in LSS 2 that year.