Powering up the solar industry. [Website]
Abstract
One reason LSS4 projects potentially face negative returns amid rising solar panel prices is because of the overly competitive bids, in anticipation of a further decline in solar panel prices. The four-year PPA extension is a life saver as developers would have more time to recoup their investments. However, despite the extension, the internal rate of return (IRR) is still lower than previously projected, some industry players say. Further, the outlook for some projects remains uncertain. Channel checks show that a number of equity owners have dropped out of the projects. Some have proposed that projects due in 2023 be pushed to 2024 following the delays. At the time of writing, the EC had not replied to queries from The Edge. Meanwhile, Samaiden Group Bhd group managing director Chow Pui Hee says underperforming developers or those with no project progress “should withdraw or surrender the quota to be re-tendered”. “Our view is that price competition is not always the most effective strategy that we would like to follow. “Instead of rewarding the lowest bid submission, the eventual award should refer to multiple aspects such as financial strength, reasonability of project cost assumptions, proposal on the risk mitigation, readiness of the project to take off, land matters and so on.”
| Item Type: | Website |
|---|---|
| Additional Information: | Source: The Edge Markets |
| Keywords: | Solar energy, Solar power purchase agreements (PPAs), Large scale solar projects, Solar panel |
| Taxonomy: | By Niche > Solar > Solar Energy By Niche > Solar > Solar Energy > Economic Aspects By Niche > Solar > Solar Energy > Government Policy |
| Local Content Hub: | Niche > Solar |
| Depositing User: | Mohd Ismail Zanudin |
| Date Deposited: | 05 Oct 2023 03:44 |
| Last Modified: | 05 Oct 2023 03:44 |
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