IN recent years, Sabah has seen a significant increase in energy demand, driven by rapid economic growth, population growth, and industrial development. As of 2024, the majority of electricity generated in Sabah comes from Independent Power Producers (IPPs), which supply 73pc of the total power, while Sabah Electricity (SE) accounts for the remaining 27pc.
The state’s total installed electricity capacity is 1,487 MW, with a reserved margin of only 5pc, serving a population of about 3.7 million people. This rise in energy usage is closely linked to the state’s ongoing industrialisation efforts.
The rapid economic growth in Sabah is a key factor behind the increased energy demand. The state is moving toward a more industrialised economy, which has led to substantial growth in sectors like agriculture, manufacturing, and tourism.
For instance, the establishment of industrial parks and commercial centres has created job opportunities and increased energy consumption. Industries require significant amounts of energy for various operations, such as running machinery, lighting, heating, and cooling, which contributes to the overall demand for electricity.
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