Introduction
On 16 July 2026, the Ministry of Energy Transition and Water Transformation (“PETRA“) announced the implementation of the sixth Large Scale Solar programme (“LSS6“). LSS6 offers a total quota of 2,500MW of solar capacity paired with 1,250MW of Battery Energy Storage System (“BESS“), plus a separate 150MW solar allocation dedicated to Bumiputera companies in Peninsular Malaysia, bringing the total offered capacity to 2,650MW.
All LSS6 projects are targeted to achieve commercial operation by 31 December 2029. According to PETRA’s announcement, the programme is expected to attract between RM13 billion and RM15 billion in private investment and create between 15,000 and 20,000 jobs during the development and construction phases. PETRA estimates that the projects will reduce carbon dioxide (CO2) emissions by approximately 2.6 million tonnes annually.
Key Features of LSS6
The key features of LSS6 are as follows:
- Types of packages: There are three types of packages offered in LSS6, available for different types of company/consortium.
| Package | Description | Criteria for Bidder(s) |
|---|---|---|
| 1 | Open tender for LSS + BESS with solar capacity of 2,200MW and 1,100MW BESS | Open to all developers |
| 2 | Bumiputera open tender for LSS + BESS with solar capacity of 300MW and 150MW BESS | Open to Bumiputera companies only |
| 3 | Bumiputera solar without BESS with solar capacity of 150MW in Peninsular Malaysia | Open to Bumiputera companies only |
2. Capacity: The capacity offered to each bidder is as follows:
- for Package 1 and Package 2: between 60 MW to 500 MW; and
- for Package 3: between 10 MW to 30 MW.
3. Commencement of operations: All LSS6 projects are scheduled to commence operations in stages with full commercial operation by 31 December 2029.
4. Mandatory pairing with BESS: The mandatory pairing of solar with BESS is a first for Malaysia’s LSS programme, aimed at strengthening grid stability, flexibility and reliability, and supporting the objectives outlined in the National Roadmap for the Energy Transition (“NETR“) and the My Battery Energy Storage System (“MyBeST“) programme.
5. Prirotity given to local products: Bidders that utilise renewable energy products such as solar photovoltaic (PV) modules manufactured domestically will be given priority.
6. Focus: Project development will be focused on strategic areas with high electricity demand growth, particularly in the southern region of Peninsular Malaysia, to optimise national generation planning and the electricity transmission system.
7. Experience required of bidders: Bidders must have experience in solar project development, while experience in BESS projects is not mandatory.
Purchase of RFP Documents
Companies that are interested in participating in the LSS6 bidding are required to purchase the Request for Proposal (“RFP“) documents. The RFP documents may be purchased at the Energy Commission headquarters at No 12, Jalan Tun Hussein, Presint 2, 62100 Putrajaya.
The purchase windows for the RFP documents are as follows:
- Package 1 and Package 2: RFP documents may be purchased from 27 July 2026 to 7 August 2026.
- Package 3: RFP documents may be purchased from 17 August 2026 to 28 August 2026.
Based on the requirements of the previous LSS rounds, it shall be noted that only companies which have purchased the RFP documents and those with details listed in the requisite forms are eligible to participate in the bidding. Failure to comply with these requirements may result in the unsuccessful purchase of the RFP documents.
Concluding Words
LSS6 represents a significant evolution in Malaysia’s renewable energy programme with the introduction of mandatory BESS requirements. The programme is the largest LSS round to date in terms of total capacity offered, reflecting the Government’s commitment to accelerating the country’s energy transition under the NETR.
Moderating solar module prices combined with the LSS6 rollout are expected to catalyse utility-scale solar activity. The mandatory BESS requirement further supports the objectives of the MyBeST programme and Malaysia’s target of achieving 70% renewable energy capacity by 2050.
The programme provides substantial Bumiputera participation opportunities, with nearly RM500 million in investment opportunities allocated through Packages 2 and 3. Companies with experience from previous LSS rounds may have an advantage given the competitive nature of the bidding process.
At present, there is no clarity on whether non-Bumiputera local companies or foreign companies may participate in Package 2 or Package 3 by forming a consortium with a Bumiputera company. Based on previous LSS rounds, there may be a requirement for participants in Package 1 to have at least 51% local equity holdings. However, these equity restrictions have not been announced in PETRA’s announcements, and the exact requirements are expected to be set out in the RFP documents.
Should you have any queries or would like to discuss any of the above further, please feel free to contact the Partners set out on this page.
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