Will OSK Partnership with Marubeni Success in Entering the Field of Solar Power Generation?

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Why are there so many listed companies want  to involve in solar power generation recently?

The reason is of course the technology, cost, profitability and government policy impact of solar power generation.

Global power generation trends focus on environmental protection and cost, so renewable energy is imperative. Malaysia is a country with four seasons like summer, and it is most suitable for developing solar power. If the government wants to reach the 20% target of renewable energy in 2025, it will need to invest about RM 33 billion.

Putrajaya called for bids for an estimated RM2 billion worth of projects under LSS3 to increase electricity generation from renewable energy.

According to Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin, it is an open tender and whoever give the lowest price for the first 500 megawatts (MW) and having passed all the required financial and technical qualifications will be the winner of the bidding exercise.

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OSK partners Japan's Marubeni, one of the world's largest independent power producers to bid for the third largest solar power plant (LSS 3) project on the Malaysian Peninsula.

OSK said the two parties signed a term sheet today, under which OSK holds a 51% participating interest and Marubeni the balance 49%, to jointly develop, operate and maintain the LSS3 project.

Ten years ago, Malaysian investors raised the power plant and thought of YTL POWER (one of the most cash-listed companies in Malaysia). Why are power plants so profitable?

The demand for electricity has been increasing. As long as the cost is controlled, it will make a big profit.

The third round of large-scale solar power LSS 3 (LARGE SCALE SOLAR) bidding last month, the winning company will be announced soon.

What if OSK & Marubeni success in bidding of the project? Will OSK become the next leader of solar renewable power in Malaysia?

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