The Malaysian government, through the Ministry of Energy Transition and Water Transformation (PETRA), has launched the sixth round of its Large Scale Solar (LSS6) program to expand the country’s renewable energy capacity and strengthen its clean energy transition. The new program includes a total allocation of 2,500 MW of large-scale solar projects integrated with 1,250 MW of Battery Energy Storage Systems (BESS), making it one of the country’s largest renewable energy initiatives.
As part of the program, the government has reserved 450 MW of solar capacity for Bumiputera companies to encourage greater participation by local businesses in the renewable energy sector. The initiative is expected to support investment, job creation, and long-term energy security while improving grid reliability through the integration of battery storage.
LSS6 will be implemented through three separate packages. Package 1 is an open tender available to all eligible developers and offers 2,200 MW of solar capacity along with 1,100 MW of BESS. Package 2 is exclusively for Bumiputera developers and includes 300 MW of solar and 150 MW of BESS. Package 3 is designed for smaller Bumiputera companies, providing 150 MW of solar capacity without a battery storage requirement.
The government has introduced several policy measures to ensure fair competition and efficient project implementation. For Packages 1 and 2, developers can bid for projects ranging from 60 MW to 500 MW, while Package 3 allows bids between 10 MW and 30 MW. Developers must demonstrate experience in solar project development, although prior experience in battery energy storage projects is not mandatory. Preference will be given to projects using locally manufactured solar photovoltaic modules, and development will focus on high-demand areas, particularly in southern Peninsular Malaysia, to improve electricity transmission and grid performance.
The LSS6 program is expected to attract private investments of between RM13 billion and RM15 billion. It is also projected to create between 15,000 and 20,000 jobs during the construction and development phases. The projects are expected to reduce carbon dioxide emissions by around 2.6 million tonnes each year. Package 3 alone is estimated to generate nearly RM500 million in investment opportunities for smaller Bumiputera businesses.
Request for Proposal (RFP) documents for Packages 1 and 2 will be available from July 27 to August 7, 2026, while Package 3 documents will be released from August 17 to August 28, 2026. The selected projects are scheduled to begin commercial operations progressively, with all projects targeted for completion by December 31, 2029.
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