Malaysia Launches 2.5GW LSS6 Solar Program with Battery Storage, Targeting $3.68 Billion in Investment

Malaysia is set to launch its sixth Large-Scale Solar (LSS6) program, a 2,500-megawatt (MW) initiative that will integrate battery energy storage systems (BESS) for the first time. The program, announced by the Ministry of Energy Transition and Water Transformation (PETRA) on Thursday, represents a significant step in the country’s efforts to accelerate its energy transition and expand renewable energy capacity. It is expected to attract between MYR 13 billion ($3.19 billion) and MYR 15 billion ($3.68 billion) in private investment.

The LSS6 program will pair 2,500MW of solar capacity with 1,250MW of battery storage, alongside a separate 150MW solar allocation dedicated to Bumiputera companies in Peninsular Malaysia. PETRA stated that the introduction of battery storage marks a key enhancement to improve the stability, flexibility, and reliability of the national power system as Malaysia increases the share of renewable energy in its electricity mix. The program builds on earlier rounds of the large-scale solar initiative that helped expand the country’s solar industry and lower electricity generation costs through competitive bidding.

Projects under LSS6 will be offered through three distinct packages. Package 1 is an open tender for 2,200MW of solar capacity and 1,100MW of BESS. Package 2 is a Bumiputera-only open tender involving 300MW of solar and 150MW of BESS. Package 3 will allocate 150MW of solar capacity without battery storage exclusively to Bumiputera developers. To promote broader participation while maintaining competitiveness, bid sizes for Packages 1 and 2 will range from 60MW to 500MW, while Package 3 projects will range from 10MW to 30MW. Developers will be required to demonstrate experience in solar project development, though prior experience in battery storage projects will not be mandatory.

The ministry also noted that preference will be given to projects utilizing domestically manufactured renewable energy products, including solar photovoltaic modules, in support of local industry development. Project development will focus on areas with strong electricity demand growth, particularly the southern region of Peninsular Malaysia, where demand is expected to rise amid rapid industrial and economic expansion. All LSS6 projects are targeted to achieve commercial operation by December 31, 2029.

Beyond investment, the government expects the program to create between 15,000 and 20,000 jobs during the development and construction phases. PETRA estimates the projects will reduce carbon dioxide emissions by around 2.6 million tons annually, supporting Malaysia’s low-carbon development goals and energy transition agenda. The dedicated Bumiputera solar program under Package 3 is expected to generate nearly MYR 500 million in investment opportunities, encouraging the participation of smaller Bumiputera companies in the renewable energy sector.

Request for Proposal (RFP) documents for Packages 1 and 2 will be available from July 27 to August 7, while RFP documents for Package 3 will be offered from August 17 to August 28. The launch of LSS6 forms part of Malaysia’s broader strategy to expand renewable energy deployment and strengthen energy security while supporting the country’s transition towards a lower-carbon economy.