KUCHING: The power sector’s third round of large scale solar (LSS) tenders is ‘undoubtedly a positive development’, analysts say, given the government’s plan to significantly increase the country’s electricity.
According to Bernama, Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin said the 500 megawatt (MW) capacity LSS3 scheme would be offered through open competitive bidding in order to provide the best tariff rates for the benefit of the people.
Through LSS3, each 1MW solar power plant was estimated to generate 1,490MW per hour of energy a year which could power 160 homes, as well as reduce carbon dioxide (CO2) gas emissions by 1,034 tonnes a year, Yeo said.
It was also reported that Yeo said the power quota offered to each developer had been increased from the previous 30MW to 100MW, and up 100 MW (1MW previously) could be implemented on a single site or in aggregate from different sites provided a single tariff is offered for all sites or separate tariffs for different locations.
“Undoubtedly a positive development considering the government’s plan to significantly increase the country’s electricity from renewable sources from the current two per cent of total generation mix, this will open up many more opportunities to incumbents and/or new entrants, with financial impact likely to be more noticeable on the smaller players,” the research arm of Public Investment Bank Bhd (PublicInvest Research) said.
“We believe this could benefit Cypark Resources Bhd given its technical expertise and experience as the developer and operator of solar parks.
“Mega First Corporation Bhd has also voiced intentions of venturing into the renewable energy space after the successful operation of its Don Sahong hydropower plant in Vietnam.”
PublicInvest Research added that other beneficiaries may be Malakoff Corporation Bhd, YTL Power International Bhd, Tenaga Nasional Bhd and Ranhill Holdings Bhd.
Yeo revealed that currently the government would be implementing two cycles of LSS projects with a total installed capacity of 958MW at the end of this year until 2020.
“To date, we believe five projects with capacities of 131MW have reached their commercial operation status, with the remaining has a commission operation date (COD) in 2019-2020,” the research arm said.