Kota Kinabalu: State Works and Utility Minister Datuk Seri Dr Joachim Gunsalam said Sabah has reduced its reliance on diesel for electricity generation, with natural gas now accounting for around 80 per cent of the State’s power supply.
“Sabah is no longer in a state of high dependence on diesel as feared. The State is moving in an orderly manner towards a more stable energy system through the use of natural gas as a transition fuel while accelerating the shift to renewable energy,” he said.
He said the 80 per cent gas-based supply, recorded based on average monthly generation figures from January to March 2026, is piped directly onshore from West Sabah through undersea pipelines.
“The source is stable and priced at a fixed rate, making it immune to global fuel price fluctuations,” he said.
“Diesel and medium fuel oil now make up only about 10 per cent of the generation mix, meaning the impact of global oil price volatility or geopolitical crises such as those in West Asia remains limited.
“With ongoing mitigation measures, diesel usage is expected to fall further to 3.6 per cent by the end of 2026,” he said.
He also noted that Sabah’s generation reserve margin, which had stood at a critical level of below 10 per cent in 2023, has since recovered to around 21 per cent and is projected to reach 27 per cent by mid-year upon the completion of a 100-megawatt gas power plant in Kimanis.
“The Sabah Energy Council has approved the award of two additional 200-megawatt gas plant projects at the same location, with completion targeted for 2028,” he said.
“Once operational, diesel and medium fuel oil usage for power generation is expected to drop to below 1.5 per cent,” he added.
Looking further east, Dr Joachim said the State Government has drawn up plans for a gas-based power plant in Sandakan following the anticipated realisation of offshore natural gas discoveries there as early as 2029, which would mark the first such facility using natural gas on Sabah’s East Coast.
On renewable energy, Dr Joachim said the State remains committed to achieving a 50 per cent renewable energy mix by 2035.
“With 236 megawatts of renewables already operational, several medium and long-term projects are in various stages of implementation, bidding or feasibility study,” he said.
“These include 450 megawatts of large-scale solar, a 200-megawatt battery energy storage system, 440 megawatts of potential wind energy, 1,054 megawatts of hydroelectric capacity and geothermal exploration in Tawau of around 100 megawatts.
“The potential use of biomass from oil palm waste is also being explored as a sustainable local energy source,” he said.
At the village level, Dr Joachim said solar hybrid and off-grid systems are being rolled out in rural and interior areas.
“A hybrid grid approach combining diesel, solar and battery systems has also been expanded to improve supply reliability in remote communities,” he said.
He said these efforts are now coordinated by the Sabah Rural Electrification Committee, known as JELaS, which was established last year as a cross-agency body tasked with achieving 100 per cent rural electricity coverage by 2030 in line with the Sabah Energy Roadmap and Master Plan 2040.
