Malaysia has unveiled the next round of its LSS program tender seeking 2.5GW solar PV co-located with 1.25GW battery energy storage system.
The initial package will tender 2.2GW of solar photovoltaic capacity together with 1.1GW of battery energy storage systems (BESS) and is available to all developers. Meanwhile, the second and third packages are reserved for Bumiputera developers operating in Peninsular Malaysia, referring to companies owned by ethnic Malays or other indigenous communities in Malaysia. Under the second package, authorities plan to allocate 300MW of solar PV paired with 150MW of BESS capacity, while the third package will offer 150MW of standalone solar PV projects.
For the two combined solar-and-storage packages, eligible bid sizes will range from 60MW to 500MW. In contrast, bids under the third package must fall between 10MW and 30MW. The Energy Ministry stated that this third package was specifically introduced to encourage smaller Bumiputera firms interested in entering the energy sector to participate.
The bidding period for the two solar-plus-storage packages will run from 27 July through 7 August 2026. Separately, submissions for the standalone solar PV package will be accepted between 17 August and 28 August 2026.
In addition, priority for project development will be directed toward strategic locations experiencing strong growth in electricity demand, particularly in the southern region of Peninsular Malaysia. This approach is intended to improve the planning and optimisation of the nation's electricity generation and transmission infrastructure.
The Ministry also explained that deploying large-scale solar projects integrated with battery energy storage is intended to strengthen the stability, flexibility and overall reliability of the country's electricity grid.
Preference will be given to projects that incorporate solar PV modules manufactured domestically. The Ministry expects all successful projects awarded through the LSS6 programme to commence commercial operations by no later than the end of 2029. By seeking a total of 2.5GW of solar PV capacity through LSS6, the tender is expected to further speed up the expansion of both solar PV and battery energy storage systems in the Southeast Asian nation, which had slightly more than 3GW of installed solar capacity at the end of 205, according to figures from the think tank Ember.
Malaysia has continued to see growing interest in combining solar PV with battery energy storage systems, a trend highlighted last year by the World Bank's investment in one of the region's largest solar-plus-storage developments. The US$6 billion initiative is designed to deliver a 4GW solar PV facility alongside 5.12GWh of BESS capacity in the Southeast Asian country and will become part of a broader pan-Southeast Asian power grid initiative.
The Ministry further projects that implementing LSS6 will generate between MYR13 billion and MYR15 billion (US$3.2 billion to US$3.7 billion) in private-sector investment while creating as many as 20,000 jobs throughout the development and construction phases of the successful projects.
Originally reported by PV Tech on Jul 20, 2026.
