RM2b LSS3 project up for bidding from Feb 27: Yeo

PUTRAJAYA: The tender for the development of the RM2 billion Large Scale Solar 3 (LSS3) scheme projects will be opened from Feb 27 to Aug 19.

Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin said the 500 megawatt (MW) capacity LSS3 scheme would be offered through open competitive bidding in order to provide the best tariff rates for the benefit of the people.

She said sale of the LSS3 request for proposal documents for the bidding purposes started yesterday until Feb 27 and could be purchased at the Energy Commission’s headquarters in Precinct 2, Putrajaya.

“The winning bid will be announced by year-end. The LSS3 is a Federal Government’s commitment to increase the generation capacity of renewable energy from 2.0 per cent to 20 per cent of total energy generated by 2025,” she told reporters during a media briefing on the project’s open tender process here on Friday.

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Currently, Yeo said the government would be implementing two cycles of LSS projects with a total installed capacity of 958MW at the end of this year until 2020.

She said through LSS3, each 1MW solar power plant was estimated to generate 1,490MW/hour of energy a year which could power 160 homes, as well as reduce carbon dioxide (CO2) gas emissions by 1,034 tonnes a year.

“Therefore, the generation of 500MW of (renewable) energy can reduce CO2 emissions by 517 kilotonnes annually,” she said.

Yeo said the LSS3 scheme was also capable of generating RM2 billion in investments and creating 10,000 jobs for Malaysians.

“The government has stipulated that the engineering, construction and commissioning components of LSS3 must be completely carried out by local contractors registered with the Construction Industry Development Board.

“However, the contractors are allowed to select foreign partners who can have up to a 49 per cent stake in a project, and they (the contractors) can procure parts and components from overseas,” she said.

Yeo said the power quota offered to each developer had been increased from the previous 30MW to 100MW, and up 100 MW (1MW previously) could be implemented on a single site or in aggregate from different sites provided a single tariff is offered for all sites or separate tariffs for different locations.

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“The aim is to ensure that the project developers can obtain better financing rates from financial institutions from economy of scale and in turn, able to lower the electricity tariff offered.

“With the tariff offered by LSS2 solar power developers as low as 33.98 sen per kilowatt hour, the government is confident that the rate can be further lowered and match the tariff offered by plants using fuels such as gas and coal by 2030,” she added. – Bernama

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