Malaysia power and renewable markets H2 2018 summary

Following the change in the Malaysian government after the 2018 election, several policies supporting renewables have been announced. These include 20% renewables in the capacity mix (excluding hydro) by 2025, more attractive pricing for the Net Energy Metering scheme, and the introduction of a solar leasing model. These measures will boost both distributed and utility-scale growth of solar power plants. We expect the Energy Commission to announce the third large-scale solar tender programme in early 2019, for a capacity of 500 MW. This will pave the way for the next phase of solar development. On the supply side, four IPP projects were cancelled and the government is still reviewing four other projects. These projects do not impact our forecasts. However, we understand the projects still under review have progressed towards financial close, so are unlikely to be cancelled. Some of these projects form a part of our current forecast.