RHB Investment Bank Bhd (RHB Research) maintained its OVERWEIGHT call on the energy sector following the official launch of Malaysia’s Large Scale Solar 6 (LSS6) programme, with Tenaga Nasional, YTL Power, Solarvest and Samaiden Group as its top picks.
MBSB Investment Bank Bhd (MBSB Research) also maintained a POSITIVE view on the renewable energy subsector, highlighting Tenaga Nasional, YTL Power International, Gamuda, Pekat and Samaiden as potential beneficiaries.
The research houses said LSS6, launched by the Ministry of Energy Transition and Water Transformation (PETRA), offers the country’s largest solar quota to date with 2.65GW of solar capacity paired with 1.25GW of battery energy storage systems (BESS).
The programme is expected to attract between RM13 billion and RM15 billion in private investments and engineering, procurement, construction and commissioning (EPCC) opportunities.
RHB Research said the programme comprises three packages, including 2.2GW of solar capacity with 1.1GW of BESS for open tender, 300MW of solar with 150MW of BESS for Bumiputera developers and 150MW of solar capacity without BESS for Bumiputera companies. The earliest project awards are expected between August and September, with commercial operations targeted by 31 December 2029.
MBSB Research said the introduction of mandatory BESS marks a major improvement for the renewable energy sector as it helps address solar intermittency by storing excess electricity and supporting grid stability.
RHB Research expects Solarvest and Samaiden to be key winners due to their track records in previous LSS programmes. Solarvest could secure 20% to 30% market share while Samaiden may capture 10% to 15%, potentially supporting further orderbook replenishment.
Both research houses noted that the LSS6 rollout provides long-term growth visibility for renewable energy players as Malaysia accelerates its transition towards cleaner energy.
