The Future of Solar Energy is Bright in Malaysia

The Future of Solar Energy is Bright in Malaysia | It is the year 2020. Growing up I have always imagined that by the year 2020, we will be using flying vehicles to move around and the jetpack will be a common thing. So far, none of that managed to materialise. But the 'future' is not that far ahead of us. 

Malaysia is among the countries that receives abundance of sun throughout the year. And of late, humans have been rigorously looking for renewable energy resources. And biomass, solar, wind and hydro has been identified among the resources that have huge potentials as renewable energy resources. In Malaysia, we have an abundance of hydro, solar and biomass resources thus the potential has attracted foreign funds to invest in solar-based companies.

Renewable energy (RE) is any form of primary energy from recurring and non-depleting indigenous resources. 'Renewable resources' means the recurring and non-depleting indigenous resources or technology as set out in the first column of the Schedule of the RE Act 2011 (Renewable Energy Status in Malaysia, 4 Dec. 2012, Sustainable Energy Development Authority)

It was reported that the demand for power in Peninsula Malaysia is projected to increase to 30 (GW) generation capacity by 2030 from peak demand capacity of 15 GW in 2008.

"Malaysia has huge potential renewable energy resources in the form of biomass, solar and hydro. These global funds who invest mainly in renewable energy projects are eyeing investment potentials in key markets in Asia and targeting companies which are undervalued and have the potential to grow. 

In Malaysia we understand there is a global fund looking at several companies involved in renewable energy projects that are listed in the local stock exchange. This includes companies which are bidding for projects under the Large Scale Solar (LSS) scheme here like Vsolar Group Bhd," said a local fund manager with knowledge on the matter.

Malaysia recently opened competitive bidding for one GW of solar plants worth about RM4 billion, the largest capacity offered under the LSS scheme.

The Ministry of Energy and Natural Resources is requesting proposals through a competitive bidding process for the development of the fourth cycle of LSS (LSS4) projects. In a statement, the Ministry said the overall capacity for LSS4 will be split into several packages of 10-30 megawatt (MW), 30-50 MW and up to 500 MW.

Vsolar has formed a partnership with Mattan Engineering Sdn Bhd to bid for a 50 WM project under the LSS scheme.  The company told the stock exchange on June 16, 2020 that through its wholly-owned subsidiary, Cubetech Asia Sdn Bhd, it plans to bid and secure a quota under the LSS scheme, with Mattan as the engineering, procurement, construction and commissioning partner for the project.

The stock has been trading actively in the past few weeks since the LSS4 project was announced, and also perhaps on news that global renewable energy funds are looking at Malaysian companies for expansion.

Vsolar closed 1.5 sen higher today at 7 sen. Some 380.8 million shares exchanged hands. Volume-wise, it was the second most active stock traded on Bursa Malaysia. A source said that Vsolar will perform better both revenue and earnings-wise, should it win the LSS project. With more projects coming up, the company is also expected to submit new bids.

With all these collaborations and active research going around, the future is looking bright for the energy sector in Malaysia. 

Remember, we do not inherit the earth from our ancestors, we borrow it from our children. So, we have to return it in its best condition to them and they will give the best to their children too.

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