RM19.5 Million Contract Boosts Malaysia solar sector Growth
Malaysia’s push towards a sustainable energy future has received another significant boost. Founder Group Limited recently announced it has secured a RM19.5 million (approximately US$5 million) contract for a 5.5 megawatt (MW) solar photovoltaic project. This development is a key part of the country’s ambitious Large Scale Solar 5 (LSS5) program, signaling continued momentum in the national renewable energy agenda.
A Key Project Under the LSS5 Initiative for Malaysia solar sector
The contract, awarded by a prominent solar investment company, tasks Founder Group with the engineering, procurement, construction, and commissioning (EPCC) of the solar facility. This project falls under the banner of Malaysia’s Peralihan Tenaga SuRiA (PETRA) initiative, more widely known as LSS5.
The LSS5 program is the nation’s largest solar tender to date, aiming to add 2,000 MW of solar capacity to the grid. This represents more than double the capacity allocated in previous LSS rounds, highlighting a major acceleration in the country’s solar deployment. The initiative is a cornerstone of the Malaysia MADANI framework and the National Energy Transition Roadmap (NETR), which sets a clear path towards achieving net-zero emissions by 2050.
Since its inception in 2016, the LSS program has been instrumental in driving renewable energy growth, approving 121 projects that contribute a total of 6,228 MW and represent over RM21 billion in investments.
Contract Details and Project Timeline in Malaysia solar sector
Under the terms of the agreement, Founder Group will be responsible for the entire project lifecycle, from design and construction to testing and final commissioning. The contract includes a performance guarantee, ensuring a Maximum Annual Available Capacity (MAAQ) of 13,568.8 MWh for the first two years of operation. The project is slated to achieve commercial operation by May 1, 2027.
A Sign of Strong Market Confidence in Malaysia solar sector
This latest contract is more than just a single project; it’s a testament to the growing confidence in Malaysia’s renewable energy policies. Lee Seng Chi, Executive Director of Founder Group, noted that this achievement builds upon the company’s prior experience with utility-scale solar projects from earlier LSS cycles.
The consistent rollout of programs like LSS5 provides stability and predictability for investors and developers, fostering a healthy ecosystem for growth. This RM19.5 million deal underscores the market’s positive reception to Malaysia’s clear and sustained commitment to expanding its solar energy portfolio, moving the nation closer to its clean energy goals.
