Solarvest, Samaiden seen as top LSS6 winners [WATCH]

KUALA LUMPUR: Solarvest Holdings Bhd and Samaiden Group Bhd are expected to emerge as the biggest beneficiaries of Malaysia’s largest-ever large-scale solar (LSS) programme.

Research houses pointed to Solarvest and Samaiden’s strong execution track records and ability to undertake larger utility-scale projects.

RHB Research expects Solarvest to secure 20 to 30 per cent of the LSS6 quota, equivalent to 500MW to 750MW of solar capacity and 250MW to 375MW of battery energy storage systems (BESS).

Samaiden is projected to capture 10 to 15 per cent, translating into 250MW to 375MW of solar capacity and 125MW to 188MW of BESS.

MBSB Research said the larger project sizes and mandatory battery storage requirements under LSS6 are likely to favour well-capitalised developers with proven delivery capabilities.

Smaller players are expected to participate mainly as engineering, procurement, construction and commissioning (EPCC) contractors or consortium partners.

Launched by the Energy Transition and Water Transformation Ministry on July 16, LSS6 will offer 2.65GW of solar capacity paired with 1.25GW of BESS, making it the country’s largest solar tender to date.

The programme, expected to attract RM13 billion to RM15 billion in investments, is also the first LSS round to require battery storage, reflecting the government’s focus on improving grid stability as renewable energy penetration increases.

Projects are targeted to achieve commercial operations by Dec 31, 2029.

RHB Research said successful bids could provide further upside to its FY2027 order book assumptions of RM2.7 billion for Solarvest and RM600 million for Samaiden.

Solarvest has already secured RM1.2 billion worth of projects this year.

RHB Research expects the first contract awards to be announced between August and September, based on previous tender timelines.

MBSB Research noted that the minimum project size for the main packages has been increased to 60MW, double the 30MW threshold under earlier LSS programmes.

The larger scale is expected to favour developers with stronger balance sheets, easier access to financing, sizeable land banks and experience delivering utility-scale renewable energy projects.

While RHB Research kept an “Overweight” rating on the energy sector with Tenaga Nasional Bhd, YTL Power International Bhd, Solarvest and Samaiden as its preferred picks, it cautioned that project returns could moderate amid increasingly competitive bidding, with internal rates of return potentially easing to the mid-single-digit range.