Malaysia's renewable energy sector is gearing up for a bustling start to the year, with a surge in solar project tenders to meet the growing power demands of data centers, according to Kenanga Investment Bank. The government's Large Scale Solar (LSS6) program, which could unlock construction jobs worth RM6 billion for up to two gigawatts of capacity, is expected to be rolled out soon. This initiative is anticipated to include battery requirements, offering developers an attractive internal rate of return of 8%-10%.
Tenaga Nasional Bhd, Malaysia's national electric utility firm, has already signed up 49 data center projects, requiring a substantial seven gigawatts of power. The Corporate Renewable Energy Supply Scheme (CRESS), launched in 2024, enables data center operators to secure long-term energy at competitive rates by purchasing green power directly from renewable energy developers. As of June 2025, CRESS has secured a committed value of 1.3 gigawatts.
In the retail sector, the Solar Accelerated Transition Action Programme (Solar ATAP) is set to boost adoption momentum as it opens for applications on January 1. Kenanga Investment Bank recommends Solarvest Holdings Bhd and KJTS Group Bhd as top sector picks, while also highlighting Pekat Group Bhd, Samaiden Group Bhd, and Swift Energy Technology Bhd as 'outperform' choices for renewable energy exposure.
