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- 3-7, 2 Rio Tower, Persiaran Rio, Bandar Puteri, 47100 Puchong, Selangor
- +6016 276 2667
- Mon to Fri | 9 am to 6 pm
Know the legal risk before you price the job.
A tender for a solar, BESS or solar-plus-storage project is more than a pricing exercise. It can become a contractual commitment. The moment a bid is submitted and accepted, the developer, EPC contractor, or subcontractor is bound by the terms in the tender documents, the draft Power Purchase Agreement (PPA), the Engineering, Procurement, Construction & Commissioning (EPCC) contract conditions, BESS supply, leasing or storage service terms, the bid bond requirements, the performance security obligations, and every other legal term in the package. Understanding what those terms actually mean and what they commit you to is not something to work out after the bid has been accepted.
Shu Pin reviews tender documentation and advises developers, investors, EPC contractors, and subcontractors on their legal obligations and risk exposure before bid submission across the Large-Scale Solar (LSS) programme, the Corporate Renewable Energy Supply Scheme (CRESS), the Community Renewable Energy Aggregation Mechanism (CREAM), Solar ATAP, SELCO and BESS project tenders, including MyBeST and other storage-related procurement structures.
Malaysia’s Large-Scale Solar (LSS) programme is a competitive bidding process administered by the Energy Commission. Successful bidders receive a 21-year PPA with Tenaga Nasional Berhad (TNB) and with it, a long-term set of obligations that begins at bid submission, not at financial close. The draft PPA, bid conditions, performance security requirements, equity and local content requirements, and the consequences of failing to meet commissioning milestones must all be reviewed and understood before a bid is submitted. Assumptions made at the bid stage that turn out to be wrong — on tariff, on site, on structure, are expensive to correct after acceptance.
CRESS and CREAM projects often begin with a commercial tender or proposal between the renewable energy developer and the proposed green consumer. The legal terms offered at that stage — including pricing, energy supply, project tenure, performance obligations, consumer withdrawal and termination can shape the project long before the regulatory application is submitted. We review the tender documents, proposals, term sheets and proposed BESC terms, and advise on the legal documents required for the subsequent CRESS or CREAM participation application. The objective is to ensure that the commercial offer, project structure and application documents are aligned before commitments are made.
EPC contractors bidding on solar projects — whether under LSS, CRESS, or private C&I projects — receive tender packages that include draft EPCC contract conditions, employer’s requirements, technical specifications, and commercial terms. Subcontractors receive packages from main contractors. In both cases, the legal terms in those packages determine the risk the contractor is taking on — payment security, performance obligations, liquidated damages exposure, variation entitlements, and termination provisions. Submitting a bid against these terms without legal review means accepting risk that may not be reflected in the price.
BESS tenders and storage-related procurement structures involve a different set of legal and commercial risks from solar-only projects. The tender package may include a BESS Supply Agreement, EPCC contract conditions, O&M requirements, BESS Leasing Agreement, Storage Service Agreement, site arrangements, grid connection requirements, performance security obligations and warranty support terms. The legal terms determine what the bidder is taking on — storage capacity, system availability, charge and discharge obligations, degradation assumptions, safety compliance, testing requirements, downtime, replacement responsibility and termination rights. These issues must be reviewed and understood before the bid is submitted. Assumptions made at tender stage on performance, warranties, safety or long-term operation are difficult to correct after award.
Where an LSS bidder wishes to propose deviations from the standard PPA terms, those deviations must be formally submitted and justified. Poorly drafted deviation requests — or deviations that conflict with the scheme’s regulatory requirements — are rejected. Understanding which terms can realistically be deviated from, how to frame the request, and what is likely to be accepted is part of the advisory work.
A bid commitment is only viable if the project can actually be licensed and commissioned as proposed. Common pitfalls include the requirement for a locally incorporated entity to hold the licence — a foreign investor who has not established a Malaysian Special Purpose Vehicle (SPV) cannot hold a licence. Issues are significantly less disruptive to identify at bid stage than to discover after a bid has been accepted and a project is underway.
Shu Pin’s starting point is the client’s position in the bid — developer, investor, EPC contractor, subcontractor, BESS owner, technology supplier or service provider — and the scheme or project model under which the tender is being run. The review is focused on the provisions that carry the most legal and commercial risk for that specific position.
The output is practical. What does this term actually commit you to? What is the worst-case exposure under this provision? What should you push back on, and what is the developer likely to accept?
For LSS, CRESS, CREAM, Solar ATAP, SELCO and BESS tenders, the advisory looks at the legal documents that need to be understood before submission — from bid conditions, draft PPAs, BESC terms and EPCC conditions to BESS supply, leasing, storage service, O&M, site and warranty support documents.
Bidding for LSS or CRESS allocations who need to understand the legal commitments in the bid package before submission.
Reviewing tender packages for solar projects — LSS, CRESS, CREAM or C&I— who need a focused legal assessment of the contract terms before pricing a job.
Who have received a tender package from a main contractor and need to understand the obligations and risk exposure before submitting a price.
Bidding for BESS or solar-plus-storage projects who need to understand the legal terms behind the supply, leasing, storage service, O&M, warranty support and performance obligations before submission.
Who are entering a Malaysian solar tender for the first time and need to understand the licensing, equity, and regulatory compliance requirements that apply before a bid can validly be submitted.
Tender advisory engagements move on compressed timelines — bid deadlines are fixed and rarely can be extended. Shu Pin works to the client’s submission timeline, prioritising the legal provisions that carry the most risk.
If you have received a tender package and are not sure which provisions need legal attention before you price and submit, that question is worth asking early. The provisions that create the most exposure are not always the most visible.
If more than one party is bidding together, the parties should agree on their roles before the bid is submitted. A joint venture, consortium, teaming or collaboration agreement can help clarify scope, cost sharing, bid responsibilities, exclusivity, confidentiality, liability, post-award obligations and what happens if the bid succeeds or fails.
An EPC contractor should check the legal terms that affect scope, payment, time, delay damages, performance guarantees, variation rights, extension of time, defects liability, warranties, indemnities, liability limits, termination and handover obligations. The key question is simple: if the tender is accepted, what legal obligations will the contractor be locked into?
A Large-Scale Solar (LSS) tender package typically includes the Request for Proposal (RFP) or bid invitation, bid conditions and evaluation criteria, a draft Power Purchase Agreement (PPA), technical specifications, equity requirements, performance security and bid bond requirements, and commissioning milestone conditions. The draft PPA is the most important document in the package — it sets out the 21-year contractual obligations the successful bidder will carry from the point of acceptance.
The extent to which a bidder may propose comments, qualifications or departures from the prescribed PPA depends on the requirements of the relevant LSS request for proposal. Certain provisions may be mandatory, and any permitted deviations must be submitted strictly in the form and manner required by the tender documents. Before submitting a bid, the prescribed PPA and bid conditions should be reviewed carefully to identify the obligations being accepted, whether any qualifications are permitted, and the consequences of submitting a non-compliant bid.
A foreign company cannot directly hold a licence under Malaysian solar frameworks. The licence must be held by a locally incorporated entity. Foreign investors must establish a Malaysian Special Purpose Vehicle (SPV) before submitting a bid or application. In addition, equity requirements under specific programmes (LSS requires at least 51% Malaysian equity) must be reflected in the SPV’s shareholding structure. Failing to address these requirements before bid submission can result in disqualification or an inability to obtain the necessary licences after a successful bid.
Before submitting a BESS bid, the bidder should review the legal terms behind the tender package — including the proposed Storage Service Agreement, EPCC contract, O&M requirements,, site arrangement, grid connection requirements, performance security obligations and warranty support terms. The key legal risks usually sit in storage capacity, system availability, charge and discharge obligations, battery degradation, safety compliance, testing requirements, downtime, replacement responsibility, delay exposure, liability limits and termination rights. These risks should be understood before the bid is priced.
A BESS supplier should review the tender terms on technical specifications, delivery timeline, testing support, warranty scope, degradation guarantees, replacement obligations, software support, safety compliance, limitation of liability, delay damages, performance remedies and termination rights. The BESS supplier should also check whether its obligations under the tender align with the manufacturer warranties and support arrangements. A supplier should not promise performance, replacement or availability obligations that it cannot back up through its upstream supply chain.
Not every awarded project can be freely sold. Before submitting a bid, the bidder should check whether the tender conditions, PPA, licence conditions, equity requirements, change-of-control provisions, assignment restrictions or regulatory approvals restrict a future sale, share transfer, novation or change in control. If the moratorium or transfer restrictions are not considered from the start, the bidder may win the project but face difficulty selling, restructuring or bringing in another investor later.
The award is not the end of the legal process. It usually triggers the next stage — execution of project documents, satisfaction of conditions precedent, provision of performance security, regulatory applications, land or roof arrangements, corporate approvals, financing or investment arrangements, and preparation for project delivery. The obligations accepted at bid stage often shape what must be done after award.
Failure to meet commissioning milestones under an LSS PPA typically triggers financial consequences — including forfeiture of performance security and, in serious cases, termination of the PPA. The specific consequences depend on the terms of the PPA and whether any relief provisions apply. The risk of missing milestones and the financial exposure if they are missed should be assessed carefully before a bid is submitted, not after acceptance.
We engage Shu Pin for our solar-related legal work across residential, commercial and industrial (C&I), and utility-scale projects, including the drafting and review of EPCC contracts, subcontracts and Power Purchase Agreements. Shu Pin understands not only the legal and commercial requirements of these agreements, but also the technical aspects of solar projects and how the contractual provisions operate in practice. She is also very supportive in accommodating our requirements and is readily accessible whenever we need to discuss an issue.
Ko Chuan Zhen, Group CEO, Plus Xnergy Holding Sdn. Bhd.
Tell us about the tender and your position in the bid. Shu Pin will give you a clear assessment of the legal risks before your submission deadline.
Malaysia’s Dedicated Renewable Energy Legal Practice.
We help you get the contract structure right before the risk becomes real.