KUALA LUMPUR: Rising electricity costs and corporate requirements to report energy-saving initiatives are set to accelerate solar adoption in 2025, driving solar engineering, procurement, construction and commissioning (EPCC) players' order books to all-time highs.
In a research note today, Kenanga Investment Bank Bhd
said key catalysts include RM2.4 billion in EPCC contracts from the 800 megawatt (MW) Corporate Green Power Programme, with earnings recognition beginning in the first quarter of 2025, and RM5 billion in large-scale solar bidding round (LSS5) EPCC contracts set to be awarded in the same period.
It said LSS5 winners have been partially revealed, and it expects Solarvest Holdings Bhd to be among the remaining winners.
While bidders have been shortlisted recently, the Energy Commission has not revealed the winners or the range of the winning bids. This is likely due to timing sensitivities, said the investment bank.
"These initiatives, which are expected to sustain the sector’s growth until 2028, dovetail with declining panel prices due to oversupply, boost margins of solar EPCC contractors, and stimulate investment in solar power systems.
"We maintain an Overweight on the sector, underpinned by the government’s robust execution of renewable energy initiatives and expanding solar quota allocations,” Kenanga Investment added. - Bernama
