KUALA LUMPUR: PublicInvest research is positive on the the Energy Commission's request for porposals to develop the third round of large scale solar (LSS) projects.
"Undoubtedly a positive development considering the government’s plan to significantly increase the country’s electricity from renewable sources from the current 2% 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," it said in a research note.
The capacity for the new new tender of LSS development will be between 1MW and 100MW with a target aggregate capacity of 500MW in Peninsular Malaysia.
PulicInvest believes this could benefit Cypark Resources and Mega First Corporation as well as Malakoff, YTL Power, TNB and Ranhill.
To recap, the government has set a target of 20% of the country's electricity to be generated from renewable sources by 2025.
To achieve the target, about 3,991MW of new energy capacity will be required in addition to the grid.
"Other than LSS projects, the government also plans to increase electricity generation through the various other feed-in-tariff (FiT) sources, namely biogas, biomass, geothermal mini-hydro as well as solar and net-energy-metering (NEM) mechanisms (i.e. energy consumer to sell surplus solar energy to the grid)," said PublicInvest.
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