PETALING JAYA: Malaysia’s renewable energy (RE) sector is set to enter another phase of accelerated growth following the launch of the large-scale solar 6 (LSS6) programme.
Analysts expect the record-sized tender to drive billions of ringgit in engineering, procurement, construction and commissioning (EPCC) contracts, strengthen earnings visibility for solar players and reinforce the country’s long-term energy transition ambitions.
Research houses generally view the LSS6 as a major catalyst for RE developers and contractors, highlighting the larger-than-expected capacity allocation and the mandatory inclusion of battery energy storage systems (Bess) as key features that will support industry growth over the next several years.
UOB Kay Hian (UOBKH) Research said: “The launch of the flagship LSS6 programme tender reinforces our investment thesis that solar EPCC players will continue to benefit from strong order book replenishment and healthy earnings visibility over the next three to five years.”
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