How LSS PETRA 5+ Shapes Malaysia's Path to 70% Renewable Energy by 2050
Energy Insights by Densui
September 22, 2025
INSIGHTS
LSS Petra 5+ is a large-scale solar energy program launched by the Malaysian government through the Ministry of Energy Transition and Water Transformation (PETRA), aimed at expanding the country’s solar power capacity through a competitive bidding process. The government said that the main purpose of LSS5+ is to accelerate Malaysia’s transition to renewable energy and help reach the target of 70% of electricity capacity from renewable energy by 2050.
The initiative offers a total of 2,000 MW (AC) of solar power generation capacity and is divided into two main packages:
i. Package A, which allocates approximately 1,500 MW for ground-mounted solar farms ranging from 30 MWac to 500 MWac, and
ii. Package B, which reserves about 500 MW for floating or water-based solar farms within the same capacity range.
The targeted commercial operation date for these projects is between 2027 and 2028. The program is expected to attract investments of RM6 to RM8 billion and create around 12,000 jobs in the renewable energy sector.
A total of 13 developers or projects have been selected under LSS Petra 5+.
List of winners here: https://theedgemalaysia.com/node/770032
Pros of the LSS 5+
Significant Increase in Renewable Energy Capacity
Adds approx. 2,000 MW of solar, including large ground and floating solar farms. This accelerates Malaysia’s RE capacity build‑out.
Boost to Investment & Local Economy
The programme is expected to attract billions in investment (an estimated RM6B to 8B), and creates thousands of jobs (estimated 12,000). In addition to being good for local industries, it fortifies and expands the local supply chains.
Promotion of Floating Solar
The inclusion of floating/water‑based solar (Package B) diversifies solar generation types, enabling use of water bodies where land may be limited or expensive.
Competitive Bidding Encouraging Efficiency
By allowing competitive tenders, the programme tends to push for better cost performance, more innovative solutions, and better financing.
Large Scale & Flexible Project Size
Bidders can build projects from a few tens of MW up to 500 MW, which allows a variety of sizes and players from larger firms or consortia to those with smaller capacity.
Alignment with National Goals
Helps with Malaysia’s commitments on energy transition, carbon emissions, sustainability, and energy security.
Industry Challenges for LSS 5+
Land & Site Availability
For large ground‑mounted solar farms (especially big sizes like 500 MW) large tracts of land are needed, which may be hard to come by or cost‑intensive. For floating solar, suitable water bodies are needed and these sites may have environmental, technical, or regulatory constraints.
High Upfront Costs + Financing Barriers
Large solar farms require large capital investment. For some developers, cost of capital, securing financing, or partnerships may be challenging. Floating solar tends to have higher costs in foundation, maintenance, and anchoring.
Regulatory & Permitting
Approvals for land use, environmental impact, water usage, especially for floating solar. There are also grid interconnection concerns such as integration capacity, and transmission infrastructure upgrades might be needed.
Timeline Risk
Projects are scheduled to start operating in 2027‑2028. However, in a real-world setting, delays in construction, supply chain, or permitting need to be accounted for, as these may push timelines back.
Return Pressures
Competitive bidding pushes tariffs down, which is good for cost, but puts pressure on margins. Developers must manage costs (of land, construction, operations, financing, etc.) well to make it viable.
Operational Risks
Maintenance of floating solar is more complex (issues such as corrosion, anchoring, water movement), while for solar, it is inevitable that solar generation is intermittent, so without sufficient storage or backup, reliance on solar alone has limits.
Environmental and Social Concerns
Use of land may conflict with agriculture, ecology, or community interests. Floating solar may affect aquatic ecosystems, water quality, or usage of reservoirs/dams. These are serious issues because with enough social pushback, projects may be affected.
Unknown Sectors
The exact tariffs (i.e. price per kWh) for each approved project are not yet fully disclosed in all cases.
The official tariffs for each individual project (per MWac or specific PPA) have not been fully disclosed to the public.
The exact tariff (sen/kWh) for each specific winning project has not been officially published.
Whether floating solar projects have different tariff or premium over ground‑installed in this round is not clear/not confirmed.
The PPA prices or contract specific terms (incentives, escalators, etc.) for each project are not in the public domain.
Disclaimer: All information correct at the time of recording/printing.
How LSS PETRA 5+ Shapes Malaysia's Path to 70% Renewable Energy by 2050
Energy Insights by Densui
September 22, 2025
INSIGHTS
LSS Petra 5+ is a large-scale solar energy program launched by the Malaysian government through the Ministry of Energy Transition and Water Transformation (PETRA), aimed at expanding the country’s solar power capacity through a competitive bidding process. The government said that the main purpose of LSS5+ is to accelerate Malaysia’s transition to renewable energy and help reach the target of 70% of electricity capacity from renewable energy by 2050.
The initiative offers a total of 2,000 MW (AC) of solar power generation capacity and is divided into two main packages:
i. Package A, which allocates approximately 1,500 MW for ground-mounted solar farms ranging from 30 MWac to 500 MWac, and
ii. Package B, which reserves about 500 MW for floating or water-based solar farms within the same capacity range.
The targeted commercial operation date for these projects is between 2027 and 2028. The program is expected to attract investments of RM6 to RM8 billion and create around 12,000 jobs in the renewable energy sector.
A total of 13 developers or projects have been selected under LSS Petra 5+.
List of winners here: https://theedgemalaysia.com/node/770032
Pros of the LSS 5+
Significant Increase in Renewable Energy Capacity
Adds approx. 2,000 MW of solar, including large ground and floating solar farms. This accelerates Malaysia’s RE capacity build‑out.
Boost to Investment & Local Economy
The programme is expected to attract billions in investment (an estimated RM6B to 8B), and creates thousands of jobs (estimated 12,000). In addition to being good for local industries, it fortifies and expands the local supply chains.
Promotion of Floating Solar
The inclusion of floating/water‑based solar (Package B) diversifies solar generation types, enabling use of water bodies where land may be limited or expensive.
Competitive Bidding Encouraging Efficiency
By allowing competitive tenders, the programme tends to push for better cost performance, more innovative solutions, and better financing.
Large Scale & Flexible Project Size
Bidders can build projects from a few tens of MW up to 500 MW, which allows a variety of sizes and players from larger firms or consortia to those with smaller capacity.
Alignment with National Goals
Helps with Malaysia’s commitments on energy transition, carbon emissions, sustainability, and energy security.
Industry Challenges for LSS 5+
Land & Site Availability
For large ground‑mounted solar farms (especially big sizes like 500 MW) large tracts of land are needed, which may be hard to come by or cost‑intensive. For floating solar, suitable water bodies are needed and these sites may have environmental, technical, or regulatory constraints.
High Upfront Costs + Financing Barriers
Large solar farms require large capital investment. For some developers, cost of capital, securing financing, or partnerships may be challenging. Floating solar tends to have higher costs in foundation, maintenance, and anchoring.
Regulatory & Permitting
Approvals for land use, environmental impact, water usage, especially for floating solar. There are also grid interconnection concerns such as integration capacity, and transmission infrastructure upgrades might be needed.
Timeline Risk
Projects are scheduled to start operating in 2027‑2028. However, in a real-world setting, delays in construction, supply chain, or permitting need to be accounted for, as these may push timelines back.
Return Pressures
Competitive bidding pushes tariffs down, which is good for cost, but puts pressure on margins. Developers must manage costs (of land, construction, operations, financing, etc.) well to make it viable.
Operational Risks
Maintenance of floating solar is more complex (issues such as corrosion, anchoring, water movement), while for solar, it is inevitable that solar generation is intermittent, so without sufficient storage or backup, reliance on solar alone has limits.
Environmental and Social Concerns
Use of land may conflict with agriculture, ecology, or community interests. Floating solar may affect aquatic ecosystems, water quality, or usage of reservoirs/dams. These are serious issues because with enough social pushback, projects may be affected.
Unknown Sectors
The exact tariffs (i.e. price per kWh) for each approved project are not yet fully disclosed in all cases.
The official tariffs for each individual project (per MWac or specific PPA) have not been fully disclosed to the public.
The exact tariff (sen/kWh) for each specific winning project has not been officially published.
Whether floating solar projects have different tariff or premium over ground‑installed in this round is not clear/not confirmed.
The PPA prices or contract specific terms (incentives, escalators, etc.) for each project are not in the public domain.
Disclaimer: All information correct at the time of recording/printing.
How LSS PETRA 5+ Shapes Malaysia's Path to 70% Renewable Energy by 2050
Energy Insights by Densui
September 22, 2025
INSIGHTS
LSS Petra 5+ is a large-scale solar energy program launched by the Malaysian government through the Ministry of Energy Transition and Water Transformation (PETRA), aimed at expanding the country’s solar power capacity through a competitive bidding process. The government said that the main purpose of LSS5+ is to accelerate Malaysia’s transition to renewable energy and help reach the target of 70% of electricity capacity from renewable energy by 2050.
The initiative offers a total of 2,000 MW (AC) of solar power generation capacity and is divided into two main packages:
i. Package A, which allocates approximately 1,500 MW for ground-mounted solar farms ranging from 30 MWac to 500 MWac, and
ii. Package B, which reserves about 500 MW for floating or water-based solar farms within the same capacity range.
The targeted commercial operation date for these projects is between 2027 and 2028. The program is expected to attract investments of RM6 to RM8 billion and create around 12,000 jobs in the renewable energy sector.
A total of 13 developers or projects have been selected under LSS Petra 5+.
List of winners here: https://theedgemalaysia.com/node/770032
Pros of the LSS 5+
Significant Increase in Renewable Energy Capacity
Adds approx. 2,000 MW of solar, including large ground and floating solar farms. This accelerates Malaysia’s RE capacity build‑out.
Boost to Investment & Local Economy
The programme is expected to attract billions in investment (an estimated RM6B to 8B), and creates thousands of jobs (estimated 12,000). In addition to being good for local industries, it fortifies and expands the local supply chains.
Promotion of Floating Solar
The inclusion of floating/water‑based solar (Package B) diversifies solar generation types, enabling use of water bodies where land may be limited or expensive.
Competitive Bidding Encouraging Efficiency
By allowing competitive tenders, the programme tends to push for better cost performance, more innovative solutions, and better financing.
Large Scale & Flexible Project Size
Bidders can build projects from a few tens of MW up to 500 MW, which allows a variety of sizes and players from larger firms or consortia to those with smaller capacity.
Alignment with National Goals
Helps with Malaysia’s commitments on energy transition, carbon emissions, sustainability, and energy security.
Industry Challenges for LSS 5+
Land & Site Availability
For large ground‑mounted solar farms (especially big sizes like 500 MW) large tracts of land are needed, which may be hard to come by or cost‑intensive. For floating solar, suitable water bodies are needed and these sites may have environmental, technical, or regulatory constraints.
High Upfront Costs + Financing Barriers
Large solar farms require large capital investment. For some developers, cost of capital, securing financing, or partnerships may be challenging. Floating solar tends to have higher costs in foundation, maintenance, and anchoring.
Regulatory & Permitting
Approvals for land use, environmental impact, water usage, especially for floating solar. There are also grid interconnection concerns such as integration capacity, and transmission infrastructure upgrades might be needed.
Timeline Risk
Projects are scheduled to start operating in 2027‑2028. However, in a real-world setting, delays in construction, supply chain, or permitting need to be accounted for, as these may push timelines back.
Return Pressures
Competitive bidding pushes tariffs down, which is good for cost, but puts pressure on margins. Developers must manage costs (of land, construction, operations, financing, etc.) well to make it viable.
Operational Risks
Maintenance of floating solar is more complex (issues such as corrosion, anchoring, water movement), while for solar, it is inevitable that solar generation is intermittent, so without sufficient storage or backup, reliance on solar alone has limits.
Environmental and Social Concerns
Use of land may conflict with agriculture, ecology, or community interests. Floating solar may affect aquatic ecosystems, water quality, or usage of reservoirs/dams. These are serious issues because with enough social pushback, projects may be affected.
Unknown Sectors
The exact tariffs (i.e. price per kWh) for each approved project are not yet fully disclosed in all cases.
The official tariffs for each individual project (per MWac or specific PPA) have not been fully disclosed to the public.
The exact tariff (sen/kWh) for each specific winning project has not been officially published.
Whether floating solar projects have different tariff or premium over ground‑installed in this round is not clear/not confirmed.
The PPA prices or contract specific terms (incentives, escalators, etc.) for each project are not in the public domain.
Disclaimer: All information correct at the time of recording/printing.
How LSS PETRA 5+ Shapes Malaysia's Path to 70% Renewable Energy by 2050
Energy Insights by Densui
September 22, 2025
INSIGHTS
LSS Petra 5+ is a large-scale solar energy program launched by the Malaysian government through the Ministry of Energy Transition and Water Transformation (PETRA), aimed at expanding the country’s solar power capacity through a competitive bidding process. The government said that the main purpose of LSS5+ is to accelerate Malaysia’s transition to renewable energy and help reach the target of 70% of electricity capacity from renewable energy by 2050.
The initiative offers a total of 2,000 MW (AC) of solar power generation capacity and is divided into two main packages:
i. Package A, which allocates approximately 1,500 MW for ground-mounted solar farms ranging from 30 MWac to 500 MWac, and
ii. Package B, which reserves about 500 MW for floating or water-based solar farms within the same capacity range.
The targeted commercial operation date for these projects is between 2027 and 2028. The program is expected to attract investments of RM6 to RM8 billion and create around 12,000 jobs in the renewable energy sector.
A total of 13 developers or projects have been selected under LSS Petra 5+.
List of winners here: https://theedgemalaysia.com/node/770032
Pros of the LSS 5+
Significant Increase in Renewable Energy Capacity
Adds approx. 2,000 MW of solar, including large ground and floating solar farms. This accelerates Malaysia’s RE capacity build‑out.
Boost to Investment & Local Economy
The programme is expected to attract billions in investment (an estimated RM6B to 8B), and creates thousands of jobs (estimated 12,000). In addition to being good for local industries, it fortifies and expands the local supply chains.
Promotion of Floating Solar
The inclusion of floating/water‑based solar (Package B) diversifies solar generation types, enabling use of water bodies where land may be limited or expensive.
Competitive Bidding Encouraging Efficiency
By allowing competitive tenders, the programme tends to push for better cost performance, more innovative solutions, and better financing.
Large Scale & Flexible Project Size
Bidders can build projects from a few tens of MW up to 500 MW, which allows a variety of sizes and players from larger firms or consortia to those with smaller capacity.
Alignment with National Goals
Helps with Malaysia’s commitments on energy transition, carbon emissions, sustainability, and energy security.
Industry Challenges for LSS 5+
Land & Site Availability
For large ground‑mounted solar farms (especially big sizes like 500 MW) large tracts of land are needed, which may be hard to come by or cost‑intensive. For floating solar, suitable water bodies are needed and these sites may have environmental, technical, or regulatory constraints.
High Upfront Costs + Financing Barriers
Large solar farms require large capital investment. For some developers, cost of capital, securing financing, or partnerships may be challenging. Floating solar tends to have higher costs in foundation, maintenance, and anchoring.
Regulatory & Permitting
Approvals for land use, environmental impact, water usage, especially for floating solar. There are also grid interconnection concerns such as integration capacity, and transmission infrastructure upgrades might be needed.
Timeline Risk
Projects are scheduled to start operating in 2027‑2028. However, in a real-world setting, delays in construction, supply chain, or permitting need to be accounted for, as these may push timelines back.
Return Pressures
Competitive bidding pushes tariffs down, which is good for cost, but puts pressure on margins. Developers must manage costs (of land, construction, operations, financing, etc.) well to make it viable.
Operational Risks
Maintenance of floating solar is more complex (issues such as corrosion, anchoring, water movement), while for solar, it is inevitable that solar generation is intermittent, so without sufficient storage or backup, reliance on solar alone has limits.
Environmental and Social Concerns
Use of land may conflict with agriculture, ecology, or community interests. Floating solar may affect aquatic ecosystems, water quality, or usage of reservoirs/dams. These are serious issues because with enough social pushback, projects may be affected.
Unknown Sectors
The exact tariffs (i.e. price per kWh) for each approved project are not yet fully disclosed in all cases.
The official tariffs for each individual project (per MWac or specific PPA) have not been fully disclosed to the public.
The exact tariff (sen/kWh) for each specific winning project has not been officially published.
Whether floating solar projects have different tariff or premium over ground‑installed in this round is not clear/not confirmed.
The PPA prices or contract specific terms (incentives, escalators, etc.) for each project are not in the public domain.
Disclaimer: All information correct at the time of recording/printing.
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Secure your summit pass for full access and save 20% with the early bird rate!
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