Cypark Resources Berhad is a public listed company on the Main Board of Bursa Malaysia since 2010. They are Malaysia’s pioneering developer and provider in Renewable Energy, Green technology, EPCC.

As for now, Cypark has operates, manages, and owned approximately 217MW solar power plants in Malaysia from SEDA, FiT, LSS, WTE and NEM. With the worth-mentioned achievement in regard to the LSS projects announced by the Energy Commission (EC) of Malaysia, Cypark has successfully secured projects: -

• SEDA FiT 32 Mw
• LSS1 with capacity of 15MW,
• LSS2 with capacity of 150MW,
• LSS3 172MW.

Notwithstanding, Cypark also secured projects of: -

• SEDA FIT Biogas with capacity of 2.1MW,
• WTE plant with capacity of 25MW.

Furthermore, with the recent relocation of LSS2 projects of Cypark (Empangan Terip & Empangan Kelinchi) to Danau Tok Uban, Kelantan with the combined capacity of 100MW making the projects the largest in Malaysia and Southeast Asia, second largest in Asia.

Update on LSS4 projects?

According to the Edge article, the fourth large-scale solar (LSS4) project awards have drawn a great deal of interest, with a total of 138 bids. Bids for LSS4's first package have ranged from 17.86 sen per kWh to 26.1 sen per kWh, and 45 bids were received for this package. While, bids for the second package have ranged from 13.99 sen per kWh to 23.88 sen per kWh were issued for 30MW to 50MW each for a total of 500MW. For the 30MW to 50MW package, there were a total of 93 bidders. 50 of the 93 bidders offered rates that were less than 20 cents per kWh, and the lowest bid was 13.99 cents per kWh out of all of them.

Conforming to the data above, the LSS4 is very competitive – not solely on the price factor but as a whole other potential factors. This is due to the case whereas other top 11 players with the pricing of 13.99 sen to 17 sen did not win the bid for the 30MW and above package. Despite not winning the LSS4 tenders, I guess Cypark can offer their EPCC expertise in solar project development to the recently announced winners of the LSS4 tenders and hoping to secure some subcontract jobs from the estimated RM3-4 billion worth of EPCC works under LSS4. Also, there will be further extension to the LSS programme given the latest RE requirement, possibly LSS5 and LSS6 that could prospectively offer similar excitement as the 2020’s LSS4 tender. (Source: The Edge)

Does Cypark rides on the bright prospects of RE in Malaysia?

Malaysia has set a target in achieving the 31% RE capacity mix target by 2025 under the Generation Development Plan 2020 where there will be a total of 1,178MW1 of new RE capacities will be developed in Peninsular Malaysia from 2021 onwards. It will be breaking down to 1,098MW of solar and 80MW of non-solar.

Source: Generation Development Plan 2020 (REPORT ON PENINSULAR MALAYSIA GENERATION DEVELOPMENT PLAN 2020 (2021 – 2039) (st.gov.my))

To date, from LSS1 to LSS4, approximately 2,200 MW has been awarded. The quota under NEM1.0 & 2.0 of 500mw has been fully subscribed while under NEM 3.0 a further 500 Mw is being offered. Therefore, the contribution from solar compared to the 2019 Generation Development plan has exceeded target and seems to be continuing. Looking at the outlook of Solar projects, the future LSS projects will have bigger capacities and will focus more on non-commercial area such as water bodies. With the recent relocation of Cypark LSS2 projects to Danau Tok Uban, Kelantan, from at Empangan Kelinchi and Terip in Negeri Sembilan, making them the floating solar market leader in Malaysia and Southeast Asia.

Notice that the capacity for Danau Tok Uban stands at 60MWdc where the previous one stood at 100MWac. The reason behind this was the solar farms incorporate large pieces of equipment, called inverters, that convert DC to AC so the electricity the farm generates is usable by homes and businesses and some energy is lost in that conversion.

Apart from LSS projects, through collaborations with state-linked companies in Kedah, Negeri Sembilan, Melaka, and Johor, Cypark can potentially aim for total capacity of up to 150MW potential NEM 3.0 (based on recently announced quota of 500mw by SEDA) projects in the next two years, with some being under Supply Agreement of Renewable Energy (SARE) and others being direct EPCC. Separately, Cypark also actively participated in multiple of private NEM tenders from universities and government-affiliated firms, with the aim of winning up to 20% of the tenders submitted.

Besides NEM, I guess Cypark will expand their footprint into New Enhanced Dispatch Arrangement (NEDA), regulated by the EC Malaysia. As they are the only solar power producer to participate in the NEDA trial run last year, therefore Cypark has a huge potential to tap onto the NEDA program.

The government also aims to have at least six (6) WTE plants to be built nationwide by 2021, with the size of each plant in the range of 20MW to 25MW. Cypark can definitely tap onto this potential that is yet to be explored by other players because Cypark is the first company that developed the first WTE plant in Ladang Tanah Merah, Negeri Sembilan that will be commissioned in the middle of 2021 with the installed capacity of 25MW. This integrated WTE plant is expected to contribute up to RM80 million a year in revenue after mid-2021.

Furthermore, Cypark should be expanding their expertise in Waste-To-Energy (WTE) throughout Malaysia, with the expected 5 tenders for new WTE in the future, with the latest being in Johor. With the track record of constructing, owning, and operating the country’s first WTE plant, Cypark expects future WTE plant capacity to be between 15MW to 25MW with an expected investment value of above RM500 million each.

Biogas is also another area where Cypark is focussing its effort. Currently it has been awarded 2.1 Mw SEDA Biogas FiT in two sites, one in Perak and the other in Johor. With approximately about 30Mw Biogas FiT are offered yearly, Cypark is confident that it can at least secure 20% of the tender in the future.

With the recent announcement made by Cypark, Cypark is at a distinct advantage in bidding for and winning the upcoming tenders for waste-to-energy (WTE) plants in Melaka, Kedah and Johor during the 2020-2021 period as the company is the first and only WTE developer and operator in Malaysia.