Renewable energy (RE) solutions provider Samaiden Group Bhd’s wholly-owned subsidiary, Samaiden Sdn Bhd (SSB) was shortlisted for the development of a 99.99-megawatt (MW) large scale solar photovoltaic (PV) plant in Pasir Mas, Kelantan.
So far, SSB has been awarded a Letter of Notification (LON) by the Energy Commission on 23 December 2024 for the development of the plant.
“The LON formally acknowledged SSB as a shortlisted bidder for the project under the Large Scale Solar 5 programme.
“SSB was selected under Package 3 (30MW to 500MW category) based on its competitive bid and fulfilment of the Request for Proposal criteria, reinforcing Samaiden’s reputation for delivering large-scale RE solutions,” the group said.
Samaiden further said the project will be developed under a 21-year Solar Power Purchase Agreement (PPA) with Tenaga Nasional Bhd (TNB), ensuring a stable and long-term revenue stream for the company.
“The plant is scheduled to achieve its Commercial Operation Date by 11 October 2027, marking the date when it will begin supplying electricity to the national power grid,” it said.
Regarding this, Samaiden group managing director Datuk Chow Pui Hee said that the development of the plant in Pasir Mas aligns with the company’s strategic plan to expand its asset portfolio.
“This project is a testament to Samaiden’s commitment to supporting Malaysia’s goal of achieving a 70% RE mix by 2050 and we are eager to bring this initiative to fruition while maintaining our dedication to environmental stewardship,” she said.
Meanwhile, the rising electricity costs in Malaysia and corporate requirements to report energy-saving initiatives are seen to accelerate solar adoption this year, which would propel solar engineering, procurement, construction and commissioning (EPCC) players’ order books to all-time highs.
On this, Kenanga Investment Bank Bhd said key catalysts include RM2.4 billion in EPCC contracts from the 800MW Corporate Green Power Programme, with earnings recognition beginning in the first quarter of 2025 and RM5 billion in large-scale solar bidding round (LSS5) EPCC contracts set to be awarded in the same period.
It said winners have been partially revealed and it expects Solarvest Holdings Bhd to be among the remaining winners.
While bidders have been shortlisted, the investment bank stated that the Energy Commission has not revealed the winners or the range of the winning bids, which is likely due to timing sensitivities.
“These initiatives – expected to sustain the sector’s growth until 2028 – dovetail with declining panel prices due to oversupply, boost margins of solar EPCC contractors and stimulate investment in solar power systems.
“We maintain an ‘overweight’ on the sector, underpinned by the government’s robust execution of RE initiatives and expanding solar quota allocations,” Kenanga Investment added.
It said that solar panel prices – nearing an inflation point in 2025 – have dropped to an all-time low with early signs that the severe oversupply in the solar industry may be easing.
“In this highly competitive environment, Chinese solar manufacturers are struggling to maintain market share and the sustained low prices are putting significant pressure on them.
“We anticipate that most solar manufacturers will report losses this year, with some unable to withstand the financial strain and ultimately exciting the market,” it said, adding that while this pressure may set the stage for recovery, a substantial rebound is unlikely in 2025, so RE players can still enjoy a good runway on margins.
“Moreover, Chinese solar manufacturers are halting production at Southeast Asian plants due to weak export outlook, following a United States (US) tariff increase on solar panels imported from China – rising to 50% from 25% as of 1 August 2024,” it said.
The bank noted that Longi has halted all five production lines at its plant in Vietnam and is winding down its operations in Malaysia, while Trina is shutting down its plants in Thailand and Vietnam.
“Despite the adjustment, global solar panel supply remains excessive, and we expect solar module prices to reach US$0.95/watt by year-end, continuing their multi-year decline,” it added.
Meanwhile, Kenanga Investment Bank said the growing market for RE certificates (RECs) is driven by corporate commitments to the RE100 initiative and data centres seeking the ‘green’ status.
The investment bank said that TNB received over 70 applications for electricity supply to data centres, with a combined demand of 11GW, potentially generating RM1.1 billion annually in the REC market.
Kenanga also believes that Solarvest stands out by offering RECs at a competitive US$5 to US$6 per MW, compared to TNB’s US$10 per MW green electricity tariff.
“By 2050, electrifying the economy will require at least three times the current electricity usage, driven by the shift to electric processes and rising power demands from artificial intelligence (AI) technologies,” it concluded.
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