Malaysia Launches 2.5GW Solar-plus-Storage Tender

Malaysia has launched the sixth round of its Large-Scale Solar (LSS6) programme, seeking 2.5GW of solar PV capacity co-located with 1.25GW of battery energy storage systems (BESS), in a move aimed at strengthening grid stability and accelerating renewable energy deployment.

The tender, led by Malaysia’s Ministry of Energy Transition and Water Transformation, will be implemented through three packages, two of which combine solar PV with battery storage.

The largest package will seek 2.2GW of solar PV paired with 1.1GW of BESS and will be open to all eligible developers. A second package will target 300MW of solar PV with 150MW of BESS and will be open to Bumiputera developers in Peninsular Malaysia. The third package will offer 150MW of standalone solar PV, with the aim of encouraging smaller Bumiputera companies to enter the energy sector.

Projects under the solar-plus-storage packages will range from 60MW to 500MW, while standalone solar projects under the third package will range from 10MW to 30MW.

Bidding for the two solar-plus-storage packages will take place from 27 July to 7 August 2026, while the bidding window for standalone solar projects will run from 17 to 28 August 2026.

The government will prioritise projects located in strategic areas with high electricity demand growth, particularly in southern Peninsular Malaysia, as part of efforts to optimise electricity generation and transmission planning.

According to the Energy Ministry, integrating BESS into large-scale solar projects is expected to improve the stability, flexibility and reliability of Malaysia’s electricity grid. Projects using domestically manufactured solar PV modules will also receive priority, while awarded LSS6 projects are expected to begin commercial operations by the end of 2029.

Stronger Momentum for Solar and Storage

The LSS6 tender marks a significant step in Malaysia’s transition from large-scale solar deployment towards solar-plus-storage integration.

With the country having just over 3GW of installed solar capacity at the end of 2025, the addition of 2.5GW of new solar capacity could significantly expand Malaysia’s renewable generation base while creating additional demand for battery storage and grid integration technologies.

The development also follows growing investment interest in large-scale solar-plus-storage projects in Malaysia. A major project backed by the World Bank aims to develop a 4GW solar PV and 5.12GWh BESS complex, which is expected to contribute to a broader Southeast Asian power grid initiative.

LSS6 is also expected to attract approximately MYR13–15 billion (US$3.2–3.7 billion) in private investment and create up to 20,000 jobs during the development and construction phases.

Malaysia’s latest tender highlights the growing role of energy storage in Southeast Asia’s renewable energy expansion, while opening new opportunities across the solar, BESS, EPC, grid integration and energy management sectors.