Great news! More and more renewable energy projects are coming up in Malaysia. All of these projects has attracted global foreign funds who are looking for growth here by investing in solar-based companies. It’s a good signs in the Malaysian economy despite the COVID-19 problems.
For your information, renewable energy is energy that is collected from renewable resources, which are naturally replenished on a human timescale, such as sunlight, wind, rain, tides, waves, and geothermal heat.
What’s more interesting, it was reported that the demand for power in Peninsula Malaysia is projected to increase from peak demand capacity of 15 GW in 2008 to 30 GW generation capacity by 2030 .
Malaysia as we known 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.
Recently, Malaysia has 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.
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.
Since the LSS4 project was announced, the stock has been trading actively in the past few week, 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.
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