Mon, 17 Feb 2025
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Power for investors and the public
Published on: Sunday, July 14, 2024
Published on: Sun, Jul 14, 2024
By: Datuk Seri Panglima Wilfred Madius Tangau
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Power for investors and the public
In a time when a steady supply of energy is not only a luxury but also a necessary condition for economic development, my ongoing contemplation revolves around a fundamental query, how might we craft an enticing proposition for potential investors while our populace grapples with the challenge of unstable power?

It's no secret that Sabah holds immense potential in enticing investors, especially major corporations reliant on critical resources like power, crucial for sectors such as manufacturing and similar industries.

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While the allure of Sabah's investment opportunities is undeniable, the retention of investors hinges on various factors beyond initial attraction. These encompass the stability of infrastructure and perhaps most significantly, the reliability and adequacy of energy supply. 

In essence, the ability to sustain investor interest relies heavily on our capacity to address these underlying concerns, ensuring a conducive environment for business growth and longevity.

Let me share one notable investment endeavour exemplifying the potential for growth which is the green steel project within the confines of the Sipitang Oil and Gas Industrial Park (SOGIP). 

This project, overseen by the Sabah Oil & Gas Development Corporation Sdn. Bhd. (SOGDC) is fully backed by the State Government which spans across 4,065 acres and stands as Sabah's pioneering oil and gas industrial park, catering specifically to petrochemical enterprises, alongside 2,471 acres of maritime territory. 

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This initiative sets Sabah firmly on the path toward embracing green technology but not without a price which comes to a substantial investment of RM20 billion. 

Through the Green Steel project, it's projected that the Sabah Energy Corporation (SEC) will provide Esteel Sabah’s steel manufacturing plant with 100 million standard cubic feet per day (mmscfd) of natural gas, alongside an extra 50 mmscfd reserved for the plant’s power generation over the coming two decades.

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This endeavour is surely a noteworthy step forward. However, it makes me wonder how can we expand comparable ideas to handle the flood of potential investors who are discouraged by our present energy shortages? These prospective investors undeniably require a dependable energy source to thrive.

Furthermore, if SEC is able to provide a huge quantity of natural gas to support industrial undertakings, why not prioritize comparable arrangements for the benefit of our local population? 

While I am strongly committed to advancing our state's economic growth, as a proud Sabahan, I believe that improving energy accessibility for all citizens should come first, before extending such advantages to external investors.

Digging deeper into the developing story of energy diversification, new information has revealed Jetama Sdn Bhd's grand project to build a massive solar power plant on top of the serene Babagon water dam in Penampang. 

This innovative project marks Sabah's first entry into the floating solar energy space and holds great potential for advancement in the renewable energy sector in the area which boasts a potential power output of 15 megawatts (MW).

As Sabahans, we greet this news of impending additional power supply with a sense of relief, recognizing the urgent need to bolster our existing energy infrastructure.

However, viewed through the lens of business dynamics, particularly from the perspective of Sabah Electricity Sdn. Bhd. (SESB), this development may entail certain financial considerations if not carefully deliberated upon.

The execution of a Power Purchase Agreement (PPA), typically spanning a period exceeding two decades, entails SESB is bonded in a commitment to procure energy at a predetermined rate from third-party entities or Independent Power Producers (IPPs).

As we've discussed in previous topics, we run the danger of purchasing energy from a third party at prices higher than our set tariff if we fail to pay attention to the finer points of these PPAs. In order to safeguard our best interests and guarantee the long-term viability of our energy procurement procedures, we must act with due vigilance in this respect.

With the impending realization of this notable solar project and many others that I am sure will soon follow, it is my earnest hope that such concerns remain unfounded.

The seamless execution for all of these project would not only ensure continued provision of energy but it would also promote benefits for all parties concerned, including the customers.

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express.

If you have something to share, write to us at: [email protected]
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