Kota Kinabalu: A staggering RM2.3 billion will be spent on boosting power generation in Sabah over the next four years, the effect of which is expected to not only meet demand but leave some to spare.The State would have enough power and in the event of disruptions there will be a reserve margin of between 15 and 20 per cent to fall back on by then. Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili on Thursday said the allocation is specifically to boost power generation and the results will depend on how fast projects are executed and how big consumption grows in Sabah.
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This will exclude the funding for distribution and transmission of electricity in Sabah. "Based on forecast, we can aim for 20 per cent margin in the next five years, depending on how fast projects like the Ulu Padas dual-function hydro project and the gas-fired power plant will come on stream. "But we are confident we can do that," he told reporters after opening the first Sabah Energy Consultative Meeting here.Ongkili said some of the funds to improve power distribution will come from the RM515 million allocated under Budget 2016 for Sabah to improve the quality of power supply in Sabah.
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He noted the funds will also be distributed to carry out hydro potential studies and on improving transmission. Power consumption in Sabah currently stands at around 900MW and is growing around 6 per cent per annum while power producers are currently generating a "dependable" 1,200MW.
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Reserve margin currently hovers around 10 to 20 per cent, but is constantly used up due to disruptions, load shedding and power producers' scheduled maintenance which often takes days. Power consumption is larger than power generation in the East Coast. Meanwhile, the Federal Cabinet has already approved the Ulu Padas project and is expected to start the project in January next year.Ongkili however blamed land issues as being among the problems slowing the execution of the 380MW Sandakan gas-fired plant. He said the government may have to draw up a five-year plan to go about the project, saying the cost of setting up the plant will not come from the government, but instead Independent Power Producers (IPPs).Nonetheless, Ongkili said he has already seen the draft plan for the project and will bring it to the Cabinet this December, saying the project has already been approved by the National Economic Council earlier. The Sandakan gas-fired plant, which will involve the installation of hundreds of kilometres of gas pipeline from Gayang in Tuaran to Sandakan, will cost an estimated RM1.4 billion involving the setting up of its transmission, RM1.5 billion for the gas and RM2.5 billion on pipeline. Others include renewable energy, from which Sabah is expected to produce 15MW each year or around RM70MW if biomass and small hydro projects are included, he said. "So over the next five years this could add up to around 250MW of renewable energy contribution," he pointed out. On another note, Ongkili also noted the cost of preparing sufficient power supply to Sabah is not easy, saying that the allocation of distributing power supply to the rural areas is also on the rise. Starting next year the cost is expected to go up to around RM100 to RM200 million from the present RM70-80 million, he said. He said his ministry plans to push for more green energy in such areas, saying this is because the eventualities of heavy rain or landslides could take up to 72 hours to reconnect if the power lines are damaged. Towards this end, Ongkili said he had already raised in the Cabinet to "complete the loop" under the Eleventh Malaysia Plan, and had been instructed by the Prime Minister Datuk Seri Najib Tun Razak to bring the matter to the Economic Council for deliberation. He said all other projects planned to improve power supply in Sabah are now under "fine tuning" stages. Meanwhile, he said plans for Malaysia and Indonesia to sell power are still far from materialising, adding however, the ministries from both governments have already received several proposals to carry out the idea. Stay up-to-date by following Daily Express’s Telegram channel.
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