Fitch: Malaysian solar poised for growth despite record-low tariffs

Facebook
Twitter
LinkedIn
Reddit
Email
In July, Malaysia's solar capacity was boosted when Scatec's 66MW facility was switched on. Source: Scatec

Record-low tariffs seen in government auctions this month in Malaysia will not dent the country’s solar growth, according to analysts at Fitch Solutions.

“While a lower bid price for developers suggest that the scope for any margin of error, such as project implementation delays, could adversely hit project economics, we do stress that Malaysia has a relatively favourable investment environment with low political, economic and operating risks compared to regional peers,” communications manager Peter Hoflich told PV-Tech in an email on Monday.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Earlier this month, solar prices dropped to a record low, around the US$40/MWh mark, in the third round of the country’s large-scale solar programme.

A report published by the Singapore-based firm on Friday forecasts that Malaysia’s solar capacity will double from 438MW installed in 2018 to 966MW within ten years.

Hoflich wrote that the prospect of “solar projects remain positive and point to scope for accelerating growth in the market over the coming years.”

The country’s high irradiation levels, its established domestic solar manufacturing sector, and the government’s plan to launch more large-scale solar tenders after the last rounds were significantly oversubscribed will all contribute to growth, according to the report.

It notes that a government push to “improve the competitive landscape for the power sector will also create a more favourable investment environment, giving greater scope for renewables growth when more capacity is procured.” A reform of the Malaysian electricity retail market industry will launch in late 2019, and state-owned energy company Tenaga Nasional Berhad will be restructured by the third quarter of 2020.

“The increasing liberalisation bodes well for private investments, and could improve competition and investments in the sector,” the report reads.

In July, Scatec Solar’s connected its 66MW Merchang project to the grid.

Read Next

December 10, 2024
Germany's rooftop solar tender ended up with a record 434MW of capacity bid, while France's was undersubscribed.
December 2, 2024
In total, 540 projects were awarded capacity in a tender that ended up oversubscribed with more than 1.7GW capacity tendered and 643 bids.
November 18, 2024
The Dubai Electricity and Water Authority has issued a tender seeking advisory services for a co-located 1.6GW solar PV/1GW BESS project.
October 29, 2024
South Korea has launched a tender for fixed-price solar and wind projects, looking for 2.8GW of new renewable power capacity.
October 16, 2024
As has been the case in many of Germany’s recent solar PV auctions, the innovation tender ended up oversubscribed with 1.8GW of capacity.
October 14, 2024
Huasun is to supply 1.5GW of its heterojunction (HTJ) PV modules to one of Malaysia’s largest EPC contractors, ITRAMAS.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
December 12, 2024
9am GMT / 10am CET
Solar Media Events, Upcoming Webinars
December 18, 2024
9am GMT / 10am CET
Solar Media Events
February 4, 2025
London, UK
Solar Media Events
February 17, 2025
London, UK
Solar Media Events
February 26, 2025
Seattle, USA