What role will Large Scale Solar (LSS5) play in the 2025 solar boom?

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Large Scale Solar (LSS5) to Inject Significant Contracts into the Solar Sector in 2025

The Large Scale Solar (LSS5) bidding round is poised to significantly contribute to the anticipated solar boom in 2025, primarily through the awarding of substantial engineering, procurement, construction, and commissioning (EPCC) contracts. These contracts, valued at an estimated RM5 billion, are expected to be awarded in the first quarter of 2025, providing a crucial boost to the sector and sustaining its growth trajectory until 2028.
LSS5 to Award RM5 Billion in EPCC Contracts

The LSS5 initiative is a key driver for the solar industry's expansion in the coming year, with RM5 billion in EPCC contracts anticipated. These contracts are scheduled for award in the first quarter of 2025, aligning with other significant industry developments such as the RM2.4 billion in EPCC contracts from the Corporate Green Power Programme. The awarding of these LSS5 contracts is expected to commence earnings recognition in early 2025, further energising the sector.
Sustained Sector Growth Driven by LSS5

Beyond the immediate injection of contracts, LSS5 is projected to play a vital role in maintaining the solar sector's momentum. The initiative is expected to sustain the industry's growth until 2028, demonstrating its long-term impact. This sustained growth is further supported by broader market trends, including declining panel prices due to oversupply and increasing corporate demand for renewable energy solutions.
Partial Revelation of LSS5 Winners

While the full list of LSS5 winners and the specific range of winning bids have not yet been disclosed by the Energy Commission, some information has emerged. Solarvest Holdings Bhd is anticipated to be among the companies that will secure contracts from this bidding round. The delay in official announcements is likely attributed to timing sensitivities surrounding the bidding process.
Synergies with Declining Panel Prices

The LSS5 contracts are set to benefit from and contribute to a favourable market environment characterised by falling solar panel prices. Panel prices have reached an all-time low of nine US cents per watt, a level that is reportedly below production costs. This oversupply situation, while pressuring manufacturers, is expected to boost the profit margins for solar EPCC contractors involved in projects like LSS5, thereby stimulating further investment.

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What role will Large Scale Solar (LSS5) play in the 2025 solar boom?

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