Large Scale Solar or known as LSS is a competitive bidding programme to drive down the Levelized Cost of Energy (LCOE) for the development of large scale solar photovoltaic plant (LSS) and Energy Commission is the implementing agency for this scheme.
LSS1 saw a total 450MW capacity awarded while LSS2 saw another 563MW capacity awarded.
Malaysia government has decided that for the LSS3 scheme, the quota offered to each developer will be increased to 100MW from 30MW previously to allow project developers to obtain better financing rates from financial institutions, and therefore lower electricity tariffs.
WHO IS ELIGIBLE TO APPLY FOR LSS?
If you are participating in the LSS program, here are the key principles of the LSS framework by the Energy Commission:
1) A local company of which the Malaysian equity interest in such local company is at least 51% / a consortium of legal entities with a minimum of one local company that has a Malaysian equity interest in the consortium of at least 51%.
2) The land used for the LSS power plant may also be optimised for other economic activities (e.g.: agricultural) and not restricted only to solar energy generation and may carry certain merit points.
3) The plant capacity range for LSS power plant as specified in the RFP.
4) The connection to the electricity network, (either the Transmission Network or Distribution Network), shall be based on technical criteria and evaluation through a comprehensive system study.
5) The Power Purchase Agreement (PPA) shall be based on take and pay, energy only under Build, Own and Operate (BOO) concession.
6) The LSS power plant may be a combination of several solar farms from different sites from one single Shortlisted Bidder and arising out of the same submission of RFP and connected to one Interconnection Point, whereby a single PPA with one Energy Rate shall be applied.
7) The PPA duration is 21 years with fixed energy price throughout.
8) The offers by the Shortlisted Bidders shall be based on the optimum output, final yield and specific yield of the proposed LSS power plant in accordance with the design and technology used.
9) The LSS developer shall declare the plant’s energy production for 21 years. In the PPA, the LSS developer is entitled to be paid the Energy Rate up to the LSS power plant’s Maximum Annual Allowable Quantity (MAAQ). Any energy beyond MAAQ, if accepted by TNB or SESB, shall be paid at the Excess Energy Rate.
10) The Energy Rate shall include but are not limited to the following:
• Engineering Procurement and Construction (EPC)
• Land Cost
• Project Development Cost
• Financing Cost
• Operation & Maintenance (O&M) Cost
• Interconnection Cost
Source: Suruhanjaya Tenaga-Energy Commission