RM13–15 Billion Solar Boom: Who Will Win Malaysia’s LSS6 Race?

Energy Box
1 minute ago
3 min read

Malaysia is preparing for another major expansion of utility-scale solar, with the sixth round of its Large Scale Solar programme (LSS6) expected to attract between RM13 billion and RM15 billion in private investment.

But this round is different from previous LSS programmes.

For the first time, battery energy storage is being integrated as a mandatory component, creating a significant new opportunity for both solar developers and BESS suppliers.

☀️ 2.5 GW Solar + 1.25 GW BESS

Malaysia’s Ministry of Energy Transition and Water Transformation has allocated:

2,500 MW

of solar capacity

together with:

1,250 MW

of battery energy storage capacity.

A total of 150 MW of solar capacity will be reserved for Bumiputera companies in Peninsular Malaysia.

Projects will be commissioned progressively, with the programme targeting full

commercial operation by:

December 31, 2029

The RFP documents for the different project packages are being released between the end of July and the end of August.

This makes LSS6 one of Malaysia’s most significant upcoming renewable energy procurement programmes.

💰 RM8–9 Billion Opportunity for Solar EPCC Companies

The investment opportunity is particularly significant for engineering, procurement, construction and commissioning (EPCC) contractors.

Maybank Investment Bank estimates that LSS6 could generate:

RM8–9 billion

of opportunities for solar companies with EPCC capabilities.

The bank expects shortlisted bidders to be announced in the first half of 2027, followed by contract awards in the second half of 2027.

This timing is important for the industry.

With LSS5 projects expected to be largely completed by the end of 2027, LSS6 could provide a new wave of order-book replenishment for Malaysia’s solar contractors.

🔋 Why BESS Could Change the LSS Model

The most important difference between LSS6 and previous rounds is not simply the additional solar capacity.

It is the mandatory integration of BESS.

The programme adds:

2.5 GW Solar

1.25 GW BESS

This means Malaysia is moving beyond simply adding renewable generation capacity toward building a more flexible electricity system capable of managing solar intermittency.

For developers and EPC companies, this could also expand the value of each project beyond conventional PV engineering.

BESS integration creates additional opportunities across:

Battery system supply
Energy management systems
Power conversion systems
Grid integration
EPC services
Operation & maintenance
Long-term energy management

In other words, LSS6 could accelerate the transition of Malaysia’s solar market from PV deployment toward integrated PV + BESS projects.

📈 Solarvest and Samaiden Among the Key Beneficiaries

Research houses are already identifying potential beneficiaries.

Maybank Investment Bank selected Solarvest Holdings as its preferred renewable-energy pick, citing its approximately 30% market share in Malaysian solar projects.

RHB Research also identified Solarvest and Samaiden as preferred beneficiaries of LSS6.

Under RHB’s assumptions:

Solarvest

20–30% potential market share

→ 500–750 MW solar

→ 250–375 MW BESS

Samaiden

10–15% potential market share

→ 250–375 MW solar

→ 125–188 MW BESS

If these assumptions materialise, LSS6 could significantly replenish the order books of Malaysia’s leading solar EPCC players.

RHB estimates potential FY2027 order-book replenishment of approximately:

RM2.7 billion for Solarvest and RM600 million for Samaiden.

⚡ The Bigger Picture: Malaysia Is Moving Toward Solar + Storage

LSS6 represents more than another round of solar procurement.

The inclusion of mandatory BESS signals a broader shift in Malaysia’s renewable-energy strategy.

Malaysia is increasingly moving from:

Solar capacity expansion

toward:

Solar + Storage + Grid flexibility

This could create a much larger ecosystem around renewable energy, particularly as the country continues to attract electricity-intensive industries and data centres while facing growing demand for reliable and low-carbon power.

The key question now is no longer simply: