KUALA LUMPUR (Dec 22): A flurry of policy and project announcements reinforce solar energy as a multi-year growth driver, supported by capacity expansion and the rollout of grid-scale battery energy storage systems (BESS), MBSB Investment Bank said.
Recent announcements include the signing of power purchase agreements for large-scale solar projects, as well as the introduction of a new programme to mark further continuity in the rooftop solar segment, the research house said.
The industry is expected to grow at an average of 14% per year from 2025 to 2050, MBSB said in its latest thematic report.
"This underpins a multi-year growth story for solar EPCC companies and also asset owners, through power generation over the long term," it said.
"However, as solar penetration rises, intermittency and system balancing constraints become more pronounced, reinforcing the critical role of battery storage for grid stability and enabling the next phase of renewable energy scaling," it added.
The latest LSS awards comprising 1,975MWac of solar capacity could unlock "up to RM5.9 billion in EPCC opportunities and contract awards will start to trickle in soon", it said.
Separately, the enhancements to the Solar Accelerated Transition Action Programme (Solar ATAP), particularly the removal of fixed quotas and the retention of the net energy metering (NEM) principle, will help mitigate demand disruptions previously seen after the expiry of earlier schemes, it added.