Malaysia Launches 2.5GW Solar-plus-Storage Tender Under LSS6 Program

Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA) has launched the sixth round of its Large Scale Solar (LSS6) tender, seeking a combined 2.5GW of solar PV capacity, including 1.25GW of co-located battery energy storage system (BESS) capacity.

The latest tender marks a major step in Malaysia’s renewable energy transition strategy, with the government focusing on large-scale solar-plus-storage development to improve grid stability, flexibility and reliability.

LSS6 Tender Includes Two Solar-plus-Storage Packages

The LSS6 program will be implemented through three separate packages, with two packages requiring solar PV projects integrated with battery storage systems.

The first package targets 2.2GW of solar PV capacity combined with 1.1GW of BESS, and is open to all eligible developers.

The second package is designed specifically for Bumiputera developers in Peninsular Malaysia, covering 300MW of solar PV capacity paired with 150MW of BESS.

Meanwhile, the third package will allocate 150MW of standalone solar PV capacity for Bumiputera companies, aiming to encourage smaller local businesses to participate in Malaysia’s renewable energy sector.

For the solar-plus-storage packages, project bids will range from 60MW to 500MW, while standalone solar projects under the third package will have a bidding range of 10MW to 30MW.

Malaysia Prioritises High-Demand Areas and Local Manufacturing

According to the Energy Ministry, priority will be given to projects located in strategic areas with strong electricity demand growth, particularly in the southern region of Peninsular Malaysia.

The initiative aims to optimise Malaysia’s electricity generation and transmission planning while supporting the integration of higher levels of renewable energy into the national grid.

Projects using locally manufactured solar PV modules will receive preferential consideration under the LSS6 tender.

The awarded projects are expected to achieve commercial operation no later than the end of 2029.

Solar-plus-Storage Investment Expected to Grow

The launch of LSS6 is expected to further accelerate Malaysia’s solar and battery storage market development.

The country currently has slightly more than 3GW of installed solar capacity, according to data from energy think tank Ember, and the latest tender will significantly expand both solar PV deployment and BESS adoption.

Growing interest in solar-plus-storage projects has already been demonstrated through several major developments in Malaysia.

Last year, the World Bank supported one of the region’s largest planned solar-plus-storage initiatives — a proposed 4GW solar PV and 5.12GWh BESS complex — which is expected to contribute to a broader Southeast Asian power grid integration effort.

LSS6 to Attract Billions in Investment

The implementation of LSS6 is forecast to attract approximately MYR13–15 billion (US$3.2–3.7 billion) in private investment and generate up to 20,000 employment opportunities during the project development and construction phases.

With energy storage becoming increasingly important for renewable integration, Malaysia’s latest solar-plus-storage tender highlights the country’s growing commitment to building a more flexible, resilient and sustainable power system.