KUALA LUMPUR (Jan 2): Malaysia’s renewable energy sector is gearing up for strong growth ahead in 2025, buoyed by key initiatives under the National Energy Transition Roadmap (NETR), said Apex Securities.
In a research note on Thursday, among the key initiatives are the 800MW Corporate Green Power Programme (CGPP) and the 2GW Large-Scale Solar 5 (LSS5), which are anticipated to unlock RM7.2 billion worth of engineering, procurement, construction, and commissioning (EPCC) projects.
“These developments will enhance order book replenishment opportunities for RE players, ensuring robust earnings visibility for the sector in 2025,” the house added.
Looking ahead, analysts foresee battery energy storage systems (BESS) emerging as a crucial component for the RE sector's evolution, especially in achieving the nation’s target of a 70% renewable energy share by 2050, through addressing the intermittency challenges associated with renewable energy sources.
According to Bloomberg, Chinese solar companies are grappling with an oversupply, which has driven solar prices to a historic low of US$0.9 per watt, marking an 18% decline in 2024.
While this overcapacity prompted the Chinese government to introduce measures aiming to alleviate oversupply in the medium term, Apex Securities suggests that the short-term impact on local RE EPCC players will be minimal unless stricter policy controls are implemented.
“In the absence of such measures, RE EPCC are likely to benefit from continued access to cheaper modules, supporting solar adoption,” the house added.