Latest news with #LSS5
The Star
27-07-2025
- Business
- The Star
Big bets on Bess
AS the market awaits the award of the large scale solar 5+ (LSS5+) programme, strong interest is also building around the country's inaugural tender for battery energy storage systems (Bess), which was launched late last year. Dubbed MyBeST, the initiative is structured as a two-stage bidding process and targets 400MW of battery power capacity with 1,600MWh of energy storage, slated to begin full operation by 2026/2027.
Focus Malaysia
18-07-2025
- Business
- Focus Malaysia
Renewable energy sector rides high on structural growth, policy support
AFTER a strong CGPP award cycle in late calendar year 2024 (CY24), which lifted Hong Leong Investment Bank (HLIB) 's aggregate coverage orderbooks to RM1.4 bil. The ongoing awards of LSS5 EPCC contracts has further lifted aggregate coverage orderbook to RM1.65 bil. 'As we had earlier highlighted, EPCC contract conversion for the LSS programme is seen to be significantly quicker than the CGPP programme leading to faster orderbook replenishment,' said HLIB regarding the renewable energy sector. Meanwhile, continued robust take-up in the recently expired Net Energy Metering 3.0 (NEM 3.0) programmes help to sustain higher margin C&I project flows in respective orderbooks of solar players. The SELCO programme will provide C&I players with an avenue to reduce electricity costs for the remainder of CY25. We reckon the sector will continue to benefit from the pipeline of large scale of RE programmes like LSS5, LSS5+ (2GW), MyBeST and LSS6. We are estimating that potential EPCC value of RM10-15 bil assuming that LSS6 is 2GW. Note that there is upside to such estimates since LSS6 could feature BESS integration. The slew of programme rollouts is expected to grow orderbooks in the RE segment over the next 12 months. Adding to this, there is also 190MW FiT small hydro and bioenergy bids to be called later of the year and could translate into EPCC contracts for bioenergy players. To this end, we view Solarvest's target of hitting RM2 bil orderbook in FY03/26 as a conservative target; the company has consistently secured 30-40% share of large scale solar programmes. The solar module market remains sluggish with average selling price ( ASP)s languishing sideways at ~USD9 cents/Watt, staying weak due to oversupply conditions. We attribute such accommodative costs as key to rapidly declining LSS bid tariffs, estimated at an average of -22% since LSS4. Modules prices are expected to stay weak on the back of excess manufacturing capacity. Along similar lines, BESS systems are also experiencing downward trending price per MWh, declining by -20% over the past year. This enhances economics of BESS integrated solar deployments. Prevailing cost dynamics are strategic for government's pursuit of NETR goals. We make no changes to our overweight sector rating. We like the sector riding on strong structural themes as well as positive earnings growth cycle. Key catalysts include contract rollout, CRESS, fresh RE quotas and export news flow. Risks: execution, slower-than-expected DC builds and cost pressure. —July 18, 2025 Main image: Getty Images
New Straits Times
18-07-2025
- Business
- New Straits Times
RE sector gains momentum with up to RM15bil in EPCC bids ahead
KUALA LUMPUR: The renewable energy (RE) sector is expected to continue gaining traction, supported by the pipeline of large-scale RE programmes such as the remainder of the fifth large-scale solar (LSS5) programme, LSS5+, MyBeST and LSS6, for which bids are expected to be called soon. Hong Leong Investment Bank (HLIB) said the potential value of engineering, procurement, construction and commissioning (EPCC) contracts from these programmes could reach between RM10 billion and RM15 billion. It added that there is upside to such estimates since LSS6 could feature battery energy storage system (BESS) integration. "The slew of programme rollouts is expected to grow order books in the RE segment over the next 12 months. "Adding to this, there are also 190 megawatt (MW) FiT small hydro and bioenergy bids to be called later in the year and could translate into EPCC contracts for bioenergy players," it added. HLIB said it considers Solarvest's goal of achieving an RM2 billion order book by financial year 2026 to be conservative, given the company's consistent track record of securing 30 to 40 per cent of large-scale solar projects. HLIB noted that the Corporate Renewable Energy Supply Scheme (CRESS) has experienced relatively modest uptake since its launch in the third quarter of financial year 2024, primarily due to the high system access charge (SAC), which ranges between 25 to 45 sen per kilowatt hour (/KWh). It said only two major sign-ups were recorded during this period: Bridge Data Centres with 400 MW and DayOne with 500 MW. However, recent electricity tariff hikes under Regulatory Period Four (RP4) could drive stronger interest. It said data centres, now classified as Ultra High Voltage time-of-use customers, are expected to face a 14 per cent increase in electricity costs compared to RP3, or around 60 sen per kilowatt hour, according to Tenaga Nasional Bhd. "More importantly, under a pure solar plant scenario and assuming LSS5+ bid tariffs, PPA tariffs of 58-60 sen/KWh enhance programme viability. "Through CRESS, data centre off-takers will receive green energy attributes and predictable costs. "We reckon that under such scenarios, solar plus BESS could see even faster adoption," it said. HLIB anticipates a significant market opportunity, citing total signed Electricity Supply Agreements amounting to 6.4 gigawatts, compared to a relatively low data centre load utilisation of just 484 MW in the first quarter of 2025. The research house expects interest to pick up further once adjustments are made to how capacity and network charges are treated.
New Straits Times
17-07-2025
- Business
- New Straits Times
Analysts stay upbeat on Malaysia's renewable energy outlook
KUALA LUMPUR: Analysts have stayed positive on Malaysia's renewable energy outlook in the second half of this year, underpinned by a strong orderbook, reported Xinhua. Maybank Investment Bank said in its recent report that it retains a positive view on the country's renewable energy sector, underpinned by strong Corporate Green Power Programme (CGPP) execution, stabilising trend on solar panel prices, and upcoming catalysts from large-scale solar 5+ programme (LSS5+) and LSS6 rollouts. Looking ahead, it noted that orderbook visibility in the sector has improved. This will be driven by solar project commissioning, stable engineering, procurement, construction, and commissioning (EPCC) margins and initial progress on battery energy storage system (BESS) investment. The report also noted that the government is progressing toward LSS5+ and LSS6 rollouts, with requests for proposals (RFPs) expected to be released in the second half. Meanwhile, LSS6 is anticipated to open up two gigawatts (GW) of new solar capacity and may incorporate BESS elements as part of grid firming requirements. "CGPP and LSS5 remain critical growth engines, with most awarded projects targeting to complete by FY2026-FY2027," said the research house. Maybank also highlighted that solar panel prices have remained stable at multi-year lows, with the latest quotes below US$0.10 per watt. This is supportive of the project's internal rate of return and is expected to sustain through the second half due to global oversupply, despite higher demand from Southeast Asia, it added. Meanwhile, Kenanga Research highlighted in its recent report that the EPCC contract value for the sector has now surged to 17.4 billion ringgit (US$4.1 billion). While LSS5+ is entering the award phase, the research house noted that Corporate Renewable Energy Supply Scheme (CRESS) is also back in play as the recent tariff hike hits data centres, triggering a surprise jump in EPCC job flow. Hong Leong Investment Bank Research also anticipates an extended growth phase in EPCC orderbooks due to the coming solar EPCC award cycle driven by LSS5, LSS5+ and LSS6. "Domestic orientation reduces the risk of negative earnings revision due to uncertain external developments," the research house said in its recent report.
The Star
15-07-2025
- Business
- The Star
Solarvest on track for strong FY26
Phillip Research said the company's management remained committed to further growing its order book to surpass RM2bil in FY26. PETALING JAYA: Solarvest Holdings Bhd is poised to chart another record showing for its financial year 2026 ending March 31 (FY26), due to, among other things, its strong engineering, procurement, construction, and commissioning (EPCC) order book. Phillip Research said it expects FY26 to be another record earnings year for the company supported by its robust RM1.2bil outstanding EPCC order book, comprising RM486mil worth of Corporate Green Power Programme projects, RM504mil in the fifth phase of the government's Large-Scale Solar (LSS5) projects, as well as RM252mil in residential, commercial and industrial projects. In a recent meeting, the research house said the company's management remained committed to further growing its order book to surpass RM2bil in FY26, underpinned by replenishment opportunities arising from LSS5, LSS5+ and the rolling out of battery energy storage systems. Solarvest has already secured a 30% share of the total two gigawatt (GW) capacity under LSS5 and is currently in active negotiations to finalise additional EPCC contracts by the third quarter of this financial year (3Q25), which could potentially lift its share to between 40% and 50%, the research house added. 'Looking ahead, the upcoming LSS5+ project is expected to introduce a further two GW of quota into the market, with bid finalisation anticipated by July 25, and EPCC contract awards commencing in 1Q26. 'Backed by a strong track record for execution in the LSS programme and robust bidding advisory capabilities, we anticipate Solarvest to maintain its 30% market share in LSS5+.' This includes the group's newly secured LSS5 projects and its Brunei solar venture, said the research house. 'The group now has a 334 megawatt pipeline of solar assets, targeted to be operational by FY28,' the research house said. Maintaining a 'buy' call on Solarvest with a higher target price of RM3.05, Phillip Research said it continues to like the company for its leading position in the solar-energy sector and for being a key beneficiary of the nation's energy-transition goals. Key downside risks include changes in the government's renewable-energy policy, project execution delays, intense market competition, and volatility in solar module prices.
