Malaysia Greenlights Massive Solar Push with 1.975 GW of New Projects

Malaysia’s government has granted approval to 13 large-scale solar energy projects, boasting a combined capacity of 1,975 megawatts (MW), as announced by the Ministry of Energy Transition and Water Transformation. Notably, the initiative includes one of the country’s largest floating solar installations, rated at 200 MW, which is expected to come online by 2027 or 2028. The projects are part of the fifth round of the Large-Scale Solar (LSS PETRA 5+) initiative, initiated through a competitive bidding process launched in January, targeting 2,000 MW in total capacity. Since the scheme began in 2016, approved solar capacity has reached 4,263 MW, illustrating Malaysia's accelerating commitment to solar power expansion. The government expresses confidence that this step will significantly contribute to increasing the renewable energy share in Malaysia’s electricity supply to 70% by 2050, aligning with its national energy transition roadmap. 1. A Marked Acceleration in Solar Ambitions This recent approval reflects Malaysia’s growing focus on large-scale renewable energy development. The fact that approved capacity nearly matches this round’s full tender volume (1,975 MW of 2,000 MW allocated) underscores high developer interest and strong market momentum. The country’s ability to attract 37 applicants proposing over 4,073 MW affirms confidence in solar’s economic and environmental potential. The cumulative approved capacity of 4,263 MW since 2016 illustrates the rising pace of solar deployment, pointing to a tightening alignment with national energy transformation targets. 2. Floating Solar: A Smart Use of Resources Among the approved projects is a floating solar plant with a 200 MW capacity, which is sizable even by global standards. Floating solar, installed on water surfaces like lakes or reservoirs, offers notable advantages: • Land efficiency – especially valuable in countries where land is at a premium. • Higher efficiency – cooler ambient temperatures boost panel performance. • Multi-purpose footprint – can preserve existing land use. Malaysia’s adoption of floating solar aligns with broader Southeast Asian strategies, where water-based solar systems are increasingly recognized as a scalable and efficient solution. 3. Economic Momentum and Job Creation These projects are projected to attract at least RM6 billion in investments and create about 12,000 jobs, boosting both economic and green job growth. This aligns with increasing global understanding that renewable deployment can deliver economic stimulus, particularly in regions seeking sustainable post-pandemic recovery. This development also enhances Malaysia’s credentials as a regional solar manufacturing hub. The country is already the world’s third-largest PV module producer, responsible for nearly 2.8% of global output—facilitating seamless integration between domestic manufacturing and project deployment. 4. Alignment with Long-Term Energy Goals Malaysia has set a target of 70% renewable energy in its electricity mix by 2050. With solar now gaining significant market share, especially through large-scale projects enabled by the LSS framework, that goal appears more achievable. Additionally, the LSS program continues to drive competitive pricing and capacity-building among local developers, reducing solar’s cost of generation relative to fossil fuels.
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