Malaysia

PETRA unveils LSS6 solar initiative with 2,500mw capacity to boost renewable energy transition

The move is expected to attract up to RM15 billion in private investment, create thousands of jobs and accelerate the country's shift towards cleaner energy

Updated 5 hours ago · Published on 16 Jul 2026 10:32AM

PETRA unveils LSS6 solar initiative with 2,500mw capacity to boost renewable energy transition
The ministry will roll out the sixth round of its Large Scale Solar programme with a combined 2,500MW solar capacity, including projects integrated with battery storage systems - July 16, 2026

THE government is set to launch the Large Scale Solar Round Six (LSS6) programme as part of its strategy to accelerate Malaysia's energy transition and expand renewable energy generation capacity.

The Energy Transition and Water Transformation Ministry (PETRA) said LSS6 will offer a total solar capacity quota of 2,500 megawatts (MW), including 1,250MW of solar generation paired with Battery Energy Storage System (BESS) technology, alongside a dedicated 150MW allocation for Bumiputera companies in Peninsular Malaysia.

In a statement on Thursday, PETRA said the latest round builds on the success of previous LSS programmes, which have strengthened the domestic solar industry and lowered electricity generation costs through transparent, market-driven bidding mechanisms.

To widen participation among industry players, LSS6 will be implemented through three separate packages.

Package 1 will feature an open tender for large-scale solar projects combined with BESS, offering 2,200MW of solar capacity and 1,100MW of battery storage capacity.

Package 2 will provide a Bumiputera-focused open tender for LSS and BESS projects, comprising 300MW of solar capacity and 150MW of battery storage capacity.

Package 3 will introduce a dedicated Bumiputera solar programme without BESS, offering 150MW of solar capacity.

PETRA said several improvements would be introduced under LSS6 to ensure the programme remains transparent, competitive and accessible.

For Packages 1 and 2, each bidder will be allowed to submit proposals ranging from 60MW to 500MW, while Package 3 will accommodate smaller projects ranging between 10MW and 30MW.

The programme will encourage the development of hybrid solar facilities equipped with BESS to improve the stability, flexibility and reliability of Malaysia's electricity supply network.

While bidders must demonstrate experience in solar project development, prior experience in BESS implementation will not be a mandatory requirement.

PETRA added that companies utilising locally manufactured renewable energy components, including solar photovoltaic (PV) modules, will be given priority during the evaluation process.

Project locations will focus on strategic areas with rising electricity demand, particularly the southern region of Peninsular Malaysia, to optimise national generation planning and transmission infrastructure.

LSS6 projects are expected to commence commercial operations progressively, with all projects targeted to achieve commercial operation by Dec 31, 2029.

The initiative is projected to attract private investments between RM13 billion and RM15 billion, while generating an estimated 15,000 to 20,000 employment opportunities throughout the development and construction phases.

PETRA also expects the programme to reduce carbon dioxide (CO₂) emissions by approximately 2.6 million tonnes annually, supporting Malaysia's commitment towards a low-carbon economy and sustainable development goals.

Separately, the Bumiputera solar initiative under Package 3 will provide opportunities for smaller Bumiputera companies to enter the renewable energy sector.

The 150MW programme, which excludes BESS installation, will focus on smaller-scale solar projects between 10MW and 30MW and is expected to create investment opportunities worth nearly RM500 million for Bumiputera businesses.

The Request for Proposal (RFP) timeline for LSS6 will begin with Packages 1 and 2 from July 27 to Aug 7, 2026.

Package 1 covers the open LSS and BESS tender involving 2,200MW of solar capacity and 1,100MW of BESS capacity, while Package 2 covers the Bumiputera LSS and BESS tender involving 300MW of solar capacity and 150MW of BESS capacity.

Package 3, covering the Bumiputera solar programme without BESS, will open for submissions from Aug 17 to Aug 28, 2026.

PETRA said the implementation of LSS6 reflects the government's commitment under the Malaysia MADANI framework to develop a clean energy sector that is transparent, competitive and delivers long-term benefits for the nation. - July 16, 2026

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