Executive Viability Abstract
This feasibility study evaluates the potential for offshore floating solar (OFS) infrastructure in Malaysia, aligned with the National Energy Transition Roadmap (NETR). The analysis focuses on a 100MW pilot installation, assessing technical durability in maritime environments, investment forecasts, and integration with the Tenaga Nasional Berhad (TNB) grid. The project demonstrates strong viability due to high solar irradiance, scarcity of land for terrestrial solar, and supportive government incentives like the Corporate Green Power Programme (CGPP).
Return on Investment
14.2% (20-year project life)
Payback Span
7.8 years
Net Present Value
USD 42.8 Million
IRR Index
11.5%
## Market Analysis
Malaysia's renewable energy target of 70% by 2050 creates a massive vacuum for utility-scale solar. Offshore floating solar (OFS) bypasses land acquisition hurdles. The market is driven by the LSS5 (Large Scale Solar) tender programs and a growing demand from industrial consumers for Green Electricity Tariffs.
## Technical Feasibility
Key technical considerations include salt-water corrosion resistance for PV modules, robust mooring systems to handle South China Sea wave heights, and subsea cabling. Preferred locations include the sheltered waters of Terengganu and Sabah.
## Financial Projections
Total CAPEX is estimated at USD 1.25 million per MW. Revenue is primarily generated through 21-year Power Purchase Agreements (PPA) with an estimated tariff of USD 0.055 - 0.065 per kWh.
## Risk Assessment
Primary risks include biofouling of equipment, maritime traffic interference, and higher maintenance costs compared to inland floating solar. Mitigation involves using marine-grade polymer floats and automated cleaning robotics.