Kota Kinabalu: Sabah’s energy future received a major boost Wednesday as officials sealed a massive 162MW hydropower project deal that will provide affordable clean electricity to thousands of homes, starting 2029.
The event at Menara Kinabalu solidified the Power Purchase Agreement (PPA) between Oriole Hydro Padas Sdn Bhd (OHP) represented by its Chief Executive Officer Saridah Mohd Dun and Sabah Electricity Sdn Bhd represented by its Chief Executive Officer Mohd Yaakob Jaafar.
It also saw the Engineering, Procurement, Construction and Commissioning (EPCC) contract between OHP represented by Saridah and a consortium led by XD Power Transmission Sdn Bhd represented by PT Anhe Konstruksi Indonesia dan Anhe Hydropower Engineering Sdn Bhd Vice President Lei Yunbiao.
The ceremony was witnessed by Deputy Chief Minister Datuk Shahelmey Yahya.
Project Oriole, located at Hulu Sungai Padas in Sipitang, is one of the largest private sector renewable energy investments in the State, directly supporting Sabah’s Energy Roadmap 2040 and its economic development ambitions.
“This milestone underscores our dedication to advancing Sabah’s Energy Roadmap 2040 and reflects our confidence in delivering affordable, green infrastructure that benefits both the State and its people,” said Jentayu Sustainables Berhad Executive Chairman Datuk Beroz Nikmal Mirdin.
The hydropower project is a collaborative effort between said Jentayu Sustainables Berhad, Sabah Electricity and Yayasan Sabah, ensuring that long-term benefits remain within the State.
It holds the distinction of being the first new plant-up PPA signed under the Energy Commission of Sabah, reflecting the State’s ongoing efforts to meet growing electricity demands.
With a 40-year concession agreement, the project is scheduled to start commercial operations by June 1, 2029.
It will deliver renewable energy at a competitive tariff of 31.5 sen per kilowatt-hour, making it one of the most affordable green energy initiatives.
Present were State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe, Yayasan Sabah Director Datuk Sri Gulamhaidar Yusof Khan Bahadar and Sabah Electricity Chairman Datuk Seri Wilfred Madius Tangau, among others.
